HB 2648 Summary

• Amends Arizona condominium and planned community law to define "common expense lien" as a lien for assessments, late payment charges (if authorized in declaration), reasonable collection fees and costs, and reasonable attorney fees awarded by court.

• Establishes that fees, charges, late charges, monetary penalties, and interest other than late payment charges on assessments are not enforceable as assessments and require a court judgment to create a lien.

• Requires association boards to exercise reasonable efforts to communicate with owners and offer reasonable payment plans before filing foreclosure actions on delinquent accounts.

• Prohibits associations from transferring ownership or control of debt for common expense liens or unit/member expenses.

• Clarifies payment application order: unpaid assessments first, then due but not delinquent assessments, then late charges and collection fees, then attorney fees, with remaining amounts applied to other fees and penalties.