S.B. 2661 Summary

• Clarifies that when a unit owner and association agree on a payment plan to cure a nonjudicial foreclosure default, the notice of default is put on hold rather than requiring rescission and refiling.

• Specifies that fines imposed on a unit owner while a payment plan is in effect do not constitute a default under the plan, and fines and associated attorneys' fees cannot be deducted from plan payments.

• Establishes a 30-day mediation requirement for unit owners disputing legal fees, penalties, fines, late fees, lien filing fees, or other charges (except common expense assessments), with the association prohibited from collection attempts during mediation.

• Clarifies that the "pay first, dispute later" requirement applies only to common expense assessments; unit owners may request written statements detailing all charges and may demand mediation on non-common-expense charges before payment.

• Repeals provisions allowing associations to deduct and apply unpaid late fees, legal fees, fines, and interest from future common expense payments.