homeowners' associations; foreclosure process

Homeowners face new limits on association debt

An association can foreclose over common assessment debt only after the owner has been delinquent for 18 months or owes at least $10,000, whichever comes first, measured on the filing date. For a special assessment initially valued at $10,000 or more, the 18-month rule applies. Before filing, the association must make reasonable efforts to contact the owner and offer a reasonable payment plan. Associations cannot use common-expense liens to collect other owner expenses; they must sue and record a judgment, which cannot be foreclosed and takes effect only when a property interest is conveyed. Associations also cannot transfer ownership or control of common-assessment or member-expense debt.