Failure to Pay HOA Dues Hurts Your Association

Did you know that homeowners who walk away from the assessment debt in a homeowners association when they vacate their homes or let them go back to the banks cost the other homeowners in the associations in California a lot of money? You can do something about it. AB 2273 is a legislative bill that was sponsored by the Community Associations Institute – California Legislative Action Committee (aka CLAC) to help alleviate the stress on HOAs that results from unpaid assessments.  It is a bill that if passed will require lenders or purchasers at the bank’s foreclosure sale to record the sale documents right away, within 30 days. This allows the HOAs to find out who the new owner of the property is so they can be billed for the assessments. Many lenders “sit on” these documents – sometimes hoping to find a buyer before recording any deeds.
Without the recording HOAs cannot find out who is the responsible party. The penalty for failing to record the documents of transfer would be that the acquiring party would have to pay the assessments subject to a lien that accrued before the sale (the penalty), in addition to the assessments that accrue after the sale (which are the debt of the owner of the property).

CLAC definitely is seeking grass roots support for AB 2273. It is expected the bankers lobby will launch a serious offense against the bill.  What CLAC seeks is accountability – hope you can support that.

Here is the recent CLAC message. Please do your part!


Assembly Bill 2273
will greatly help your HOA identify the new owners and their mailing address for purposes of invoicing them for assessments.   The bill requires recordation of a sale within 30 days of the sale.  (Current law does not require this recordation!)

We expect CONSIDERABLE OPPOSITION to our bill from several special interests.  That is why you, and your neighbors and colleagues, need to fight back to help this bill pass.

CAI-CLAC NEEDS YOUR HELP … the vote is coming up and your letter to the Housing Committee Chairwoman is needed right away.

Go to to get a LETTER TO be faxed to (916) 772-3781.   We will hand deliver the hundreds of letters that will be necessary to get this bill passed to the 7 key legislators who will determine the bill’s fate in committee.



I also urge you to visit my other blog, the California Condo & HOA Law blog for much more on this, and survey results showing how seriously the financial health of HOAs in California has been threatened by delays in foreclosure by lenders.

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