This bill addresses HOA assessment liens — the claim an association places on a home for unpaid dues, and how far that lien reaches. Lien rules are the pressure point in most assessment disputes.
In short: Addresses HOA assessment liens.
Introduced — no action Mixed
Modifies the lien statutes for condominiums and planned community associations (Association).
For homeowners: Mixed, largely protective with one serious catch: it limits foreclosure to owners at least one year delinquent and only after reasonable board efforts and payment-plan offers, ties late charges and attorney fees to what is authorized or court-awarded, and voids the lien if the association fails to fix a misapplied-payment error within 10 days. The significant downside is that it exempts the assessment lien from the homestead exemption, exposing owners' home equity. It saw no action.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- Specifies that an Association has a lien on a unit or property for any common expense assessment. (Sec. 1, 2)
- Stipulates that any common expense assessment may include: a) reasonable charges or interest for late payment if authorized in the declaration; b) reasonable collection costs or fees incurred or applied by the Association; and c) reasonable attorney fees and costs incurred only as awarded by the court in an action. (Sec. 1, 2)
- Declares that the full amount of the assessment is a lien from the time the first installment becomes due if a common expense assessment is payable in installments. (Sec. 1, 2)
- Prescribes that the common expense assessment lien is not subject to the homestead exemption prescribed by statute. (Sec. 1, 2)
- Specifies that a common expense assessment may be foreclosed only if: a) the owner has been and remains delinquent in payment of the common expense assessments for a period of one year; and b) the Association board of directors has exercised all reasonable efforts to communicate with the owner, negotiate reasonable payment plans and collect the debt through remedies available under statute before filing a forec
- States that a judgment or decree in any action brought under this section may include costs and reasonable attorney fees for the prevailing party only as ordered by the court. (Sec. 1, 2)
- Changes, from 10 days to 10 calendar days, for the Association to furnish the statement of any unpaid assessment liens to a lienholder, escrow agent, unit owner or other person designated by the unit owner. (Sec. 1, 2)
- Asserts that, unless the unit owner directs otherwise, all payments received on a unit owner's account must be applied first to the following: a) unpaid delinquent common expense assessments; b) unpaid current but nondelinquent common expense assessments; c) unpaid charges or interest for late payment of those assessments; d) unpaid reasonable collection costs or fees; and e) unpaid court-ordered attorney f
- Stipulates that failure of the Association or its authorized agents, including any attorney for the Association or its authorized agent, to correct any error in the application of payments from the unit owner within 10 calendar days after receiving the notice of error extinguishes any common expense lien assessment then due. (Sec. 1, 2) 10. Makes technical and conforming changes. (Sec. 1, 2) 11. 12. 13.
The A.R.S. sections this bill amends, adds, or repeals — taken from the bill text. Click one to read the current law.
Official bill page (azleg.gov) → Full bill text → Fact sheet / summary → Bill history (LegiScan) →
Organizations and industry insiders who registered a position on this bill through the Legislature’s public Request to Speak system — simply where each stood: For, Against, or Neutral. Individual homeowners are not listed. Whether this bill helps or hurts homeowners is our own read, shown by its label above — a group’s position doesn’t set our call. Each row links to that entity’s report card and to the source at azleg.gov.