When homeowners stop paying assessments, the financial strain falls on everyone else in the community. Repairs stall, reserves dwindle and the board must make tough calls. For these situations, Arizona law gives homeowners associations (HOAs) a powerful collection tool: the common expense lien.
A lien is a legal claim against a property that secures payment of a debt. When placed on a home, the lien remains attached to the property until the debt is paid. If the debt goes unpaid long enough, the lienholder may have the right to force a sale of the property to collect what is owed. For HOAs, this tool helps ensure that all owners contribute their fair share to community expenses.
How HOA liens work in Arizona
In Arizona, an HOA lien forms as soon as an assessment becomes due and remains unpaid. The association does not need to file or record a separate document for the lien to exist. This happens because the community’s Covenants, Conditions and Restrictions (CC&Rs), once recorded, notify owners and future buyers that unpaid assessments may attach to the property.
The lien usually includes past-due assessments, late fees, reasonable collection costs and related attorney fees. It does not include fines for rule violations or charges unrelated to common expenses. When boards include those amounts, disputes often follow. These issues commonly arise in matters involving homeowners’ association law, especially when collection efforts escalate.
When an HOA can foreclose
Having a lien does not mean an HOA can foreclose right away. Arizona law sets clear limits before foreclosure becomes an option. The owner must be at least 18 months behind on assessments or owe $10,000 or more, whichever comes first.
The association must also take certain steps before moving forward. It must offer a payment plan and send a written notice at least 30 days before referring the account to an attorney or collection agency. That notice must clearly state that foreclosure is possible if the balance remains unpaid.
How lien priority affects other creditors
HOA liens carry strong priority, but they do not outrank every claim. Liens recorded before the CC&Rs, first mortgages and government tax liens take priority. In most cases, this places the HOA behind the primary mortgage but ahead of second mortgages, judgment liens and many other creditors.
Time limits for enforcing an HOA lien
Arizona law also sets a deadline for enforcement. An HOA generally has six years from the date the full assessment becomes due to act on its lien. If the association does not take action within that time, the lien expires. This deadline often shapes how boards address long-term delinquencies. Knowing these rules helps owners and boards understand when an HOA lien applies, how it may be enforced and when legal limits come into play.