HB 1499 - Condominium Associations Summary

• Clarifies that when a unit owner and association agree to a payment plan to cure a nonjudicial foreclosure, the notice of default is put on hold (not rescinded), and the association can proceed with foreclosure if the owner defaults on the payment plan without filing a new notice.

• Specifies that fines imposed while a payment plan is in effect do not constitute a default under the plan, and disputes over fines must be resolved through mediation before foreclosure proceeds.

• Limits the "pay first, dispute later" requirement to common expense assessments only; allows unit owners to demand mediation for disputed legal fees, penalties, fines, late fees, and lien filing fees before payment.

• Expands the condominium education trust fund to support voluntary binding arbitration between parties after they attempt evaluative mediation, with caps of $6,000 total per arbitration and $175 per party fee to arbitrators.

• Establishes mandatory mediation procedures for disputes involving interpretation of association declarations, bylaws, house rules, or chapter provisions, with exceptions for property damage, health/safety issues, assessments, and personal injury claims.