An HOA can foreclose on a home over unpaid assessments. This bill addresses that assessment-lien foreclosure process — the notice, timing, and protections that decide how easily an association can take a home.
In short: Addresses the HOA assessment-lien foreclosure process.
Introduced — no action Pro-homeowner
HB4050 overhauls HOA assessment liens and foreclosure procedures for condominiums and planned communities (A.R.S. 33-1202, 33-1256, 33-1802, 33-1807). It raises the delinquency thresholds required before foreclosure, requires the board to attempt a payment plan first, mandates online account access, and bars associations from selling off assessment debt.
For homeowners: Pro-homeowner: it raises the foreclosure bar to 18 months delinquent or $10,000 owed, mandates an offered payment plan first, and bars associations from selling assessment debt to outside collectors. Mandatory online account access and accurate-recordkeeping duties let owners see and dispute charges before they escalate to a lien.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- Foreclosure requires the owner to be delinquent for at least 18 months OR owe $10,000 or more (for both condominiums and planned communities).
- For special assessments of $10,000 or more, only the 18-month time threshold applies.
- Before filing for foreclosure, the board must make reasonable efforts to communicate with the owner and offer a reasonable payment plan.
- Definitions are updated so 'common expenses' include administrative and operational expenses, and 'unit owner/member expenses charges' are distinguished from the common-expense lien.
- Associations must provide secure online viewing access or electronic statements, keep a true and accurate record of accounts, and make good-faith efforts to resolve contested charges.
- An association may not transfer ownership or control of common-expense-lien debt (i.e., cannot sell the debt to a third party).
The A.R.S. sections this bill amends, adds, or repeals — taken from the bill text. Click one to read the current law.
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.