HB2264 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 2264 By: Miller COMMITTEE SUBSTITUTE An Act relating to property; amending 60 O.S. 2021, Section 852, which relates to owners associations; providing that a lien filed shall include any obligation in connection with membership in the owners association by means of a levy or assessment which arise after the filing of the lien; providing that an owners association may collect on any amounts owed to it by filing an action; providing for attorney fees; providing outcome if a lien has been filed and the owners association is the prevailing party; providing outcome if no lien has been filed and the owners association is the prevailing party; providing outcome if owners or members are the prevailing party; providing when an owners association may foreclose upon a lien or a judgment lien; providing when lien or a judgment lien may be foreclosed against an owne rs association; providing for recovery of reasonable attorney fees; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 60 O.S. 2021, Section 852, is amended to read as follows: HB2264 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. An "owners association" may be formed by the owner or owners of real estate development for the purpose of: 1. providing Providing management, maintenance, preservation and control of commonly owned areas or any portion of or interest in them, and/or; and 2. enforcing Enforcing all mutual, common or reciprocal interests in or restrictions upon all or portions of such separately owned lots, parcels, or areas, or both. B. An owners association shall be formed by the execution of an instrument signed and acknowledged by all owners of the real property included. Such instrument shall set forth in detail the nature of the obligations of the members and shall be filed of record in the office of the county clerk of the county wherein the real property is located. The instrument shall include a description of said real property. C. The owners association shall have the power to enforce any obligation in connection with membership in the owners association by means of a levy or assessment wh ich may become a lien upon the separately or commonly owned lots, parcels or areas of defaulting owners or members, which said lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale. In an action brought to enforce any lien authorized pursuant to the provisions of this section, the prevailing party shall be entitled to recover reasonable attorney's HB2264 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 attorney fees to be fixed by the court, which shall be taxed as costs in the action. The lien filed shall also include any obligation in connection with membership in the owners association by means of a levy or assessment which arise after the filing of the lien and is otherwise unpaid. No lien may be placed or mortgage foreclosed unless the homeowner was informed in writing upon joining the owners association of the existence and content of the owners association restrictions and rules, and of the potential for financial liability to the individual owner by joining said owners association. D. The owners association may collect on any amounts owed to it by filing an action in the district court where the separately or commonly owned lots, parcels or areas of defaulting owners or members is located. In an action brought pursuant t o this subsection, the prevailing party shall be entitled to recover reasonable attorney fees to be fixed by the court, which shall be taxed as costs in the action. The filing of an action to collect under this subsection does not affect the rights of the owners association under subsection E of this section. 1. If a lien has been filed, and the owners association is the prevailing party, any judgment obtained against the defaulting owners or members shall supersede the lien and any amounts owed pursuant to the judgment, including attorney fees, may be collected HB2264 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 on by the owners association in any manner provided by law for the collection of judgments. 2. If no lien has been filed, and the owners association is the prevailing party, any judgment, includin g attorney fees, obtained against the defaulting owners or members may become a judgment lien and be collected on by the owners association in any manner provided by law for the collection of judgments. 3. If the owners or members are the prevailing party , any amounts owed pursuant to the judgment, including attorney fees, shall become an obligation of the owners association which shall be paid by the owners association, including but not limited to, by means of a levy or assessment upon the separately or commonly owned lots, parcels or areas of the owners or members excepting the prevailing party owners or members. If the owners association also owns any common area property, the owners or members as the prevailing party may file a statement of judgment w hich shall attach to those common areas. E. 1. After the third anniversary of the filing of a lien pursuant to subsection C of this section, or the filing of a judgment lien pursuant to paragraphs 1 and 2 of subsection D of this section, whichever is ear lier, if there are amounts still owed to the owners association, the lien or judgment lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale. HB2264 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. After the third anniversary of the filing of a judgment lien pursuant to paragraph 3 of subsection D of this section, if there are amounts still owed by the owners association, the lien or judgment lien may be foreclosed in any manner provided by law for the foreclosure of mortgages or deeds of trust, with or without a power of sale. 3. In an action brought to enforce any lien authorized pursuant to the provisions of this subsection, the prevailing party shall be entitled to recover reasonable attorney fees to be fixed by the court, which shall be taxed as costs in the action. SECTION 2. This act shall become effective November 1, 2025. COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/06/2025 - DO PASS, As Amended.