The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482.
- You cannot start a foreclosure if less than 3 months of regular dues or $200 (whichever is larger) is delinquent. You cannot count fines, late fees, interest, or attorney fees to calculate the delinquent amount for this purpose.
- No sooner than 90 days after the account becomes delinquent, the association must mail a Notice of Delinquency containing specific language detailed in HB 1482. The Notice must be mailed to the owner’s mailing address (as provided to the association) and to the unit or lot address. You cannot start a foreclosure if this notice is not mailed.
- You cannot start a foreclosure until 180 days after the amount calculated in section 1 above is delinquent.
- To start a foreclosure, the Board must specifically approve that action against each individual owner. (A policy or manager decision is not adequate.)
- The law sets a minimum balance due before you can begin a foreclosure lawsuit; 3 months of dues or $200, whichever is larger.
- The law creates a new notice requirement to the owner before a foreclosure lawsuit can be started. But the account must be delinquent at least 90 days to send this notice. (This amount delinquent is not tied to the amount in step 1.)
- The law creates a minimum period of time that the association must wait before a foreclosure lawsuit can be filed. For now that is 180 days after the minimum amount is delinquent.
What the law does NOT do:
- Prevent you from sending normal delinquency notices after any missed payment.
- Prohibit late fees or interest being assessed or collected.
- Affect any other collection remedy in your governing documents, including personal lawsuits, utility termination, rent intercept, etc.