HB 879 Summary

• Authorizes nonjudicial (power of sale) foreclosure for condominium and planned community associations to collect unpaid common expense assessments, with foreclosure procedures controlled by state statute regardless of declaration or bylaw provisions.

• Requires associations to provide 21 days' advance notice by first class and certified mail to unit owners, mortgage creditors, state director of taxation, and county finance director, plus posting on the unit and three successive newspaper publications.

• Allows owner-occupants a single 45-day stay of nonjudicial foreclosure if they notify the association within 5 days of receiving foreclosure notice and demonstrate financial capacity to pay all delinquent amounts, and requires boards to consider reasonable payment plans.

• Permits associations to credit bid at foreclosure auctions up to the amount of their lien and requires successful bidders to pay a down payment of no more than 10 percent immediately, with the balance due upon completion of the purchase.

• Limits special assessments against purchasers who acquire properties through mortgage foreclosure to unpaid regular monthly assessments from the 6 months preceding foreclosure, capped at $3,600, and exempts mortgagees with prior-recorded liens from liability for pre-foreclosure assessments.