Expanding and funding the foreclosure mediation program.

Added explicit protections and mediation requirements for unit owners in common interest communities (HOAs, condos, cooperatives) facing foreclosure for unpaid assessments.

Created a mandatory 'meet and confer' process requiring associations to negotiate with unit owners within 30 days of contacting a housing counselor before referring the case to mediation.

Prohibited associations from charging attorney fees to unit owners during the 30-day period between contacting a counselor and the required negotiation meeting.

Updated pre-foreclosure notice requirements to include specific language directing residents to contact housing counselors and warning about predatory individuals.

Adjusted the distribution percentages of the Foreclosure Fairness Account, increasing the share for housing counseling activities and reducing the share for the Attorney General's office.

Extended the expiration date for several sections of the bill from January 1, 2028, to ensure continued funding and program operation.

Added a new definition for 'Assessment' to clarify that it includes common expenses, fines, late charges, and collection costs in the context of HOA foreclosures.

Added specific rules and requirements for association foreclosures, including new document submission deadlines and resolution options like payment plans for delinquent assessments.

Updated eligibility criteria to include deceased borrowers or unit owners and successors in interest for both deed of trust and association foreclosures.

Created a new $80 foreclosure prevention fee assessed at closing for residential mortgages (excluding reverse mortgages) to fund the program.

Modified mediation timelines and document requirements to distinguish between deed of trust foreclosures (90-day window) and association foreclosures (30-day window).

Clarified that mediator certifications regarding good faith violations can serve as a defense against foreclosure for both lenders and associations.

Removed the previous exemption for associations subject to specific chapters of the Condominium Act, expanding the program's reach to these entities.

The bill's reading date was updated from February 20 to February 28, 2025.

The bill's committee assignment changed from Senate Housing to Senate Ways & Means.

The new section was moved from chapter 31.04 to chapter 61.24 to align with the foreclosure fairness act.

Added authority for the department to create policies and procedures for implementing and collecting the fee.

Funding percentages were adjusted: legal aid increased from 6% to 16.5%, counseling decreased from 69% to 50%, and the hotline increased from 15% to 16.5%.

Removed a specific line item allocating funds to the department for implementation, as the total was redistributed.