SB 1494: common expense liens; foreclosure; amount - Arizona

Senate Engrossed Version → Chaptered Version · 6 edits

MODERATE

This bill amended Arizona's common expense lien laws for homeowners associations, extending the foreclosure timeline from one year to eighteen months and increasing the minimum delinquent amount threshold from $1,200 to $10,000. The changes provide homeowners more time to resolve unpaid assessments before facing foreclosure proceedings, while also clarifying that member expenses cannot be enforced as common expense liens and must instead be pursued through civil judgments.

Scope change

The bill applies to all homeowners associations in Arizona with common expense liens, but adds specific protections for planned communities with fewer than fifty lots regarding account statement requirements.

TIMELINE

Extended the minimum delinquency period required before foreclosure from one year to eighteen months

THRESHOLDS

Increased the minimum delinquent amount threshold for foreclosure from $1,200 to $10,000

REQUIREMENT

Added new requirements for associations to provide detailed account statements including ledger history

Added provisions for electronic statement delivery options and convenience fees for alternative payment methods

ENFORCEMENT

Added specific notice requirements for delinquent accounts including boldfaced text and certified mail delivery

ELIGIBILITY

Clarified that member expenses cannot be enforced as common expense liens and must be pursued through civil judgments instead

House Engrossed Version → Senate Engrossed Version · 3 edits · Apr 15, 2025

MINOR

This bill version updates the foreclosure timeline for homeowners' association liens, increasing the required delinquency period from one year to two years or $10,000 in unpaid assessments. The changes also clarify payment processing rules and add formatting requirements for notices sent to members about delinquent accounts.

Scope change

The bill applies to homeowners' associations with common expense liens on properties, with modified foreclosure thresholds affecting when associations can legally foreclose.

ENFORCEMENT

Increased the minimum delinquency period for foreclosure from one year to two years, or $10,000 in unpaid assessments, whichever comes first, giving members more time to resolve payment issues before foreclosure proceedings begin.

REQUIREMENT

Added requirement for associations to exercise reasonable efforts to communicate with members and offer reasonable payment plans before filing foreclosure actions.

TECHNICAL

Updated notice formatting requirements to ensure contact information for payment discussions is clearly included in certified mail communications sent to members about delinquent accounts.

Introduced Version → House Engrossed Version · 6 edits · Apr 15, 2025

MODERATE

This bill updates Arizona's common expense lien laws for homeowners associations, primarily increasing the foreclosure threshold from $1,200 to $10,000 and extending the delinquency period from one year to eighteen months. It also adds new requirements for account statements, collection notices, and payment application order to improve transparency and member protections.

Scope change

The bill's scope remains focused on common expense liens for homeowners associations, but the thresholds for foreclosure and delinquency periods have been significantly adjusted to provide more time and higher amounts before foreclosure actions can be taken.

TIMELINE

Extended the required delinquency period before foreclosure from one year to eighteen months.

ELIGIBILITY

Increased the minimum delinquent amount threshold for foreclosure from $1,200 to $10,000.

REQUIREMENT

Added new requirement for associations to provide account statements with ledger history and allow electronic delivery options.

Added new requirement for specific collection notice formatting and inclusion of contact information for payment discussions.

Added new requirement specifying the order in which payments must be applied to account balances.

ENFORCEMENT

Added new provisions regarding collection fees, convenience fees for electronic payments, and restrictions on transferring debt ownership.

common expense liens; foreclosure; amount

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