Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
REVISED
FACT SHEET FOR S.B. 1470
homeowners' association liens; homestead exemptions
Purpose
Includes planned community association (HOA) and condominium unit owner's
association (COA) liens for assessment against a home or condominium unit in the order of priority
for liens after the protection of the homestead exemption.
Background
Arizona’s homestead exemption protects up to $400,000 of a person’s equity in their
dwelling from attachment, execution or forced sale. The exemption applies to a person’s house
and land, condominium or cooperative, mobile home or mobile home and land. Property that is
subject to the homestead exemption is exempt from involuntary sale under a judgment lien, except
in connection with: 1) a consensual lien or contract of conveyance; 2) a materialmen's lien; 3) a
child support lien; and 4) a recorded civil judgment or other nonconsensual lien that is not
otherwise prescribed, if the debtor's equity in the real property exceeds $400,000 (A.R.S.
§§ 33-1101; Version 2 and 33-1103).
A COA and an HOA have a lien on a home or condominium unit for any assessment levied
against the home or condominium unit from the time the assessment becomes due. The lien
includes assessments, late charges, collection fees, attorney fees and other costs incurred with
respect to the assessments. The lien may be foreclosed in the same manner as a real estate mortgage
if the owner has been delinquent on assessments for a period of one year or in an amount of $1,200
or more, whichever occurs first, as determined on the date the action is filed. The COA or HOA
has a lien for fees, charges, late charges, monetary penalties or interest after the entry of a judgment
in a civil suit from a court of competent jurisdiction and the recording of the judgment.
A lien for assessments, charges for late payment of the assessments, reasonable collection
fees and reasonable attorney fees and costs has priority over all other liens, interests and
encumbrances on a home or condominium unit, except: 1) liens and encumbrances recorded before
the recordation of the declaration; 2) a recorded first mortgage, a seller's interest in a first contract
for sale on the unit recorded before the lien arising for any assessment or a recorded first deed of
trust; or 3) liens for real estate taxes and other governmental assessments or charges against the
home or unit. A COA or an HOA assessment lien is not subject to the protection of the homestead
exemption (A.R.S. §§ 33-1256 and 33-1807).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Includes HOA and COA assessment liens in the order of priority for liens after the protection
of the homestead exemption. FACT SHEET – Revised
S.B. 1470
Page 2
2. Makes technical changes.
3. Becomes effective on the general effective date.
Revisions
• Corrects the background to reflect the current amount of the homestead exemption.
Prepared by Senate Research
February 13, 2023
MG/sr