HB 2663 Summary

• Homeowners' associations may foreclose on assessment liens only if the owner has been delinquent for one year or $1,200 or more and the association board has exercised reasonable efforts to communicate, negotiate payment plans, and pursue all reasonably available remedies before filing foreclosure.

• Late payment charges, interest, collection fees, and attorney fees are only enforceable as part of the assessment lien if authorized in the declaration (late charges and interest) or awarded by the court (attorney fees and collection costs).

• Other fees, charges, and monetary penalties not related to late payments or collection of assessments can only create a judgment lien after court judgment and county recording, and these liens cannot be foreclosed.

• Associations must apply all payments first to delinquent assessments, then current assessments, then late charges and collection costs, then attorney fees, with any errors corrected within 10 calendar days or the assessment lien is extinguished.

• The bill applies similar lien priority and foreclosure requirements to both condominiums (33-1256) and planned communities (33-1807), establishing consistent protections for homeowners facing assessment enforcement actions.