Arizona HOA Common Expense Liens: A.R.S. 33-1807

What the law covers

The association has a common expense lien on a property for any assessment levied against that property from the time the assessment becomes due. If an assessment is payable in installments, the full amount is a lien from the time the first installment becomes due.

Member expenses are not enforceable as common expense liens. They can become a judgment lien only after a court judgment and recording with the county recorder.

Recording the declaration constitutes record notice and perfection of the common expense lien; no further recordation is required.

The association's governing documents and later amendments may also apply.

Key requirements and limits

• Foreclosure is allowed only if the owner has been and remains delinquent for eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed. For special assessments with an initial value of $10,000 or more, only the eighteen-month threshold applies.
• The board must exercise reasonable efforts to communicate with the member and offer a reasonable payment plan before filing foreclosure.
• The lien is extinguished unless enforcement proceedings are instituted within six years after the full amount of the assessment becomes due.
• Lien priority is behind liens recorded before the declaration, recorded first mortgages or deeds of trust (and certain seller interests), and real estate taxes or governmental charges.
• If two or more associations have liens on the same property, those liens have equal priority unless the declaration provides otherwise.
• A judgment or decree may include costs and reasonable attorney fees for the prevailing party.
• The association may not transfer ownership or control of debt for common expense liens or member expenses.

Notice, hearing and deadlines

• Before authorizing an attorney or collection agency that is not acting as the association's managing agent to begin collection, the association must provide written notice at least thirty days in advance.
• The notice must state: "Your account is delinquent. If you do not bring your account current or make arrangements that are approved by the association to bring your account current within thirty days after the date of this notice, your account will be turned over for further collection proceedings. Such collection proceedings could include bringing a foreclosure action against your property."
• The notice must be in bold-faced type or all capital letters, include contact information, and be sent by certified mail, return receipt requested.
• On written request, the association must furnish a statement of unpaid liens within ten days. The statement is binding if requested by a licensed escrow agency. Failure to provide it to an escrow agent within the time limit extinguishes the lien for any unpaid assessment then due.
• Except for certain small planned communities, the association must provide a statement of account instead of a payment book, with the same frequency as assessments in the declaration.

Practical checklist for homeowners

• Read your governing documents and any later amendments.
• Keep copies of notices and correspondence from the association.
• Request a written statement of unpaid liens if you need one.
• Keep records of your payments and how they are applied.
• Check the official statute text for updates.