HB 1499 Summary

• Clarifies that when a unit owner and association agree to a payment plan to cure a nonjudicial foreclosure default, the notice of default is put on hold (not rescinded) until the payment plan is completed, and any subsequent default under the payment plan allows foreclosure to proceed without filing a new notice.

• Establishes that unpaid fines imposed while a payment plan is in effect do not constitute a default under that plan, and requires the association to notify the unit owner of mediation rights for disputed fines.

• Restricts the "pay first, dispute later" requirement to common expense assessments only; allows unit owners to demand mediation before paying other charges (penalties, fines, late fees, lien filing fees, attorneys' fees) except common expense assessments, with a 30-day mediation window.

• Prohibits associations from using nonjudicial foreclosure for liens arising solely from fines, penalties, legal fees, or late fees; such foreclosures must be filed in court instead.

• Expands the condominium education trust fund to support voluntary binding arbitration between parties and establishes mandatory mediation procedures for disputes involving interpretation or enforcement of declarations, bylaws, house rules, or condominium law.