House Bill 422

Chair's Name: Wendell Willard

Committee: Judiciary Civil

House Sponsor: Wendell Willard

Chairman Willard’s Opinion of the legislation:

Three years ago, the law was changed to allow the condominium associations the ability to foreclose upon liens.  Since then, there have been instances in which liens in amounts as low as $150.00 have been foreclosed. HB 422 establishes $2,000.00 as the minimum amount of a condominium association or property owners association lien (including late fees and interest, and excluding attorneys fees) in a lien foreclosure action.  The bill preserves an association’s ability to collect unpaid dues through a lien, judgment, or restriction from amenities, but limits foreclosures to debts totaling $2,000.00 or more over a four-year period.  The bill honors lenders’ first-priority mortgage liens.

This Legislation:

• Strengthens our Traditional Family Structure by preventing families from losing their homes over small debts.
• Reduces the Tax Burden on our Citizens by limiting foreclosures to larger association liens and mortgage loans, thus, the number of foreclosed property owners requesting government assistance will be reduced.
• Increases Personal Responsibility by still requiring people to pay their condo and homeowners association bills, retaining enforcement mechanisms such as liens, judgments, and restrictions on use of amenities. 

This bill passed the House under the Open Rule.

Further Action

The Senate version adds the language “actually incurred” after “reasonable attorney’s fees” (p.2 line 31). The House agreed to the Senate Substitute.