HB-2648 Liens and Assessments predatory collection practices of HOA attorneys
Dennis, Rep. Neal Carter connected me to your HOA Advocacy. Thank you for your AZHOC ! Could you please uodate me and your readers/members the status of: “The first and most significant of all the bills this session is HB-2648 Liens and Assessments. This bill’s primary purpose was to end the predatory collection practices of HOA attorneys relative to assessment liens and the collection of fines and penalties”. Thank You, Paul
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Paul,
That bill has become law and becomes effective on the 14th of September, along with all other legislation that the Governor signed from the last legislative session. The legislation page contains all the detailed correspondence I provided to the coalition for the last legislative session. You will find detailed explanations of what that bill does and does not do. I’ will also be sending out a new communication shortly to all coalition members, hopefully answering any of your questions. CAI has spread many lies through the HOA attorneys and community managers about the impact of this bill. All of it is false; anyone reading the bill will see it. This bill was a direct frontal attack on the predatory collections practices of HOA attorneys and ended their capability to rape homeowners for delinquent assessments. This does not stop the collection rights of Associations in any way. It just says that the association can use any collection agency they want. Still, the association must incur the collection cost before it is passed on 100% to the homeowner. This was intended to have the association board look at collections differently and seek the cheapest alternatives. Attorneys themselves will price themselves all out of business. Many collections services provide much more cost-effective collection services than any HOA attorney. If the association wants to use an attorney for litigation actions, they are free to do so, but this is true for all litigation. The court awards the attorney’s fees and costs based on what the court deems reasonable and appropriate.
If you have any specific questions about this bill, please feel free to ask.
Dennis