AZ HB2614

HOA payments must be applied first to unpaid assessments, then to late charges, collection fees, and court-awarded attorney fees, with remaining amounts applied to other fees and penalties, unless the owner directs otherwise in a signed instrument.

Condominium associations may foreclose on a unit only after the owner is delinquent for one year or owes $1,200 or more, while planned community associations may foreclose after 18 months or $10,000 or more in delinquency.

Associations must make reasonable efforts to communicate with owners and offer payment plans before filing foreclosure actions.

Member expenses (fees, charges, late charges, monetary penalties, and interest) cannot be enforced as common expense liens and require a court judgment before becoming a lien on the property.

Associations must provide written notice by certified mail at least 30 days before authorizing attorney or collection agency action on delinquent accounts, and must provide regular statements of account to owners.