HB 2648
Initials PB Page 1 Transmitted
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: COM DPA/SE 9-0-1-0 | 3
rd
Read 56-0-3-0-1
Senate: FICO DPA 6-0-1-0 | 3
rd
Read 28-0-2-0-0
Final Pass: 58-0-2-0-0
HB 2648: motor vehicle manufacturers; TPT; exemption
NOW: condominiums; planned communities; lien; assessment
Sponsor: Representative Martinez, LD 16
Transmitted to the Governor
Overview
Revises condominiums and planned communities' statutes relating to liens.
History
A condominium and planned community association has a lien on a unit for any assessment
levied against that unit from the time the assessment becomes due. The association's lien for
assessments, for charges for late payment of those assessments, for reasonable collection fees
and for reasonable attorney fees and costs incurred with respect to those assessments may
be foreclosed in the same manner as a mortgage on real estate but only if the owner has been
delinquent in the payment of monies secured by the lien, excluding reasonable collection fees,
reasonable attorney fees and charges for late payment of and costs incurred with respect to
those assessments, for a period of one year or in the amount of $1,200 or more, whichever
occurs first.
Fees, charges, late charges, monetary penalties and interest charged, other than charges for
late payment of assessments, are not enforceable as assessments. The association's lien for
monies other than for assessments, for charges for late payment of those assessments, for
reasonable collection fees and for reasonable attorney fees and costs incurred with respect to
those assessments may not be foreclosed and is effective only on conveyance of any interest
in the real property (A.R.S. ยงยง 33-1256 and 33-1807).
Provisions
Condominium and Planned Community Liens
1. Replaces references of lien with common expense lien. (Sec. 2, 4)
2. Specifies the association's common expense lien may be foreclosed if the owner has been
and remains delinquent in the payment of assessments. (Sec. 2, 4)
3. Requires the association board of directors to exercise reasonable efforts to communicate
with the owner and offer a reasonable payment plan before filing a foreclosure action.
(Sec. 2, 4)
4. Specifies unit owner expenses are not enforceable as common expense liens. (Sec. 2, 4)
5. Clarifies the association has a lien for specified expenses after the entry of a judgment in
a civil suit. (Sec. 2, 4) HB 2648
Initials PB Page 2 Transmitted
6. Clarifies a common expense lien, rather than a lien for unpaid assessments, is
extinguished unless proceedings to enforce the lien are instituted within six years. (Sec.
2, 4)
7. Allows, rather than requires, a judgment to include costs and reasonable attorney fees for
the prevailing party. (Sec. 2, 4)
8. Requires the association to furnish a statement setting forth the amount of any unpaid
liens, rather than any unpaid assessments, against the unit or property if requested. (Sec.
2, 4)
9. Clarifies the order of payments received on an owner's account. (Sec. 2, 4)
10. Asserts the association cannot transfer ownership or control or debt for common expense
liens or specified expenses. (Sec. 2, 4)
11. Includes a definition for assessment, common expense lien, member expenses and unit
owner expenses. (Sec. 1, 3)
Miscellaneous
12. Makes technical and conforming changes. (Sec. 1-4)