HOA Collection Laws In The U.S. (50 States) For Fair Debt Collection

If you’re part of the HOA board, you may find yourself trying to collect overdue fees and assessments from people who cannot. Doing this, however, requires that you have a certain level of understanding of HOA collection laws.

 

Are There Federal Collection Laws for HOAs?

No specific federal law governs collection practices specifically for HOA communities. Most debt collection practices are governed by state law, and your specific homeowner’s association’s governing documents tackle the process.

Many HOAs across the country try to collect debt in-house, depending on whether the bylaws and CC&Rs allow them to do so. In other cases, however, HOAs tap third-party collecting agencies to do the work for them.

If an HOA intends to hire a collection agency, it needs to make sure that the said agency complies with the Fair Debt Collection Practices Act (FDCPA).

Simply put, the FDCPA is federal legislation that tackles debt collection. It applies to third-party debt collectors. In a nutshell, this law governs how these agencies should collect debt and unpaid dues. It prohibits abusive, deceptive, and unfair debt collection practices, such as harassment, misrepresentation, and unauthorized communication with homeowners.

Collection Laws for HOAs in Every State

HOAs’ method to recover overdue dues will vary depending on your community. Many HOAs have already meticulously outlined the process in their governing documents. However, some provisions may be found in state regulations.

Here are some of the homeowners’ and condo association collection laws to take note of per state:

 

Alabama

In Alabama, community associations need to follow the Uniform Condominium Act (Alabama Code § 35-8A-316) and the Homeowners Association Act (Alabama Code § 35-20-12) for debt collection.

These state laws allow HOAs to place liens on the properties of residents who repeatedly don’t pay HOA fees. On top of that, HOAs can pursue foreclosure proceedings if the debt remains unpaid for a long time. However, the HOA must still stick to proper notice requirements and avoid deceptive practices.

In some cases, HOAs can decide to hire a third-party collector. However, the HOA must ensure that the collector complies with the FDCPA and the Alabama Fair Debt Collection Practices Act (AFDCPA).

 

Alaska

When it comes to HOA collection laws in Alaska, associations should follow the Alaska Common Interest Ownership Act (AS 34.08.470 – 34.08.490). This state-level law lays out how associations should assess fines and penalties for unpaid dues. In addition, HOAs in Alaska are also allowed to place liens on the properties of delinquent homeowners and, in the worst cases, pursue foreclosure proceedings.

HOAs that hire third-party collectors need to ensure that the ones they contract comply with the FDCPA and state general consumer protection laws. These laws disallow deceptive trade practices in debt collection.

 

Arizona

There are several collection laws for HOAs in Arizona. More specifically, Arizona Revised Statutes (ARS) Title 33, Chapter 16, including ARS § 33-1807 and ARS § 33-1808, regulates debt collection.

This allows HOAs to file liens and enforce foreclosures if residents refuse or can’t pay HOA dues and assessments.

For associations who employ debt collectors, do know that the state has the Arizona Fair Debt Collection Practices Act (ARS § 32-1051 – 32-1067). This law mirrors the FDCPA. It also says that all collection actions need to be done in a fair and non-deceptive way.

HOAs who collect unpaid dues in-house aren’t under FDCPA but still need to follow the state’s consumer protection statutes.

 

Arkansas

Based on Arkansas Code § 18-12-103 (Property Owners’ Association Act), HOAs in the state can collect liens on delinquent property and pursue foreclosure. At the same time, though, that law outlines strict notice requirements before your HOA can start foreclosure proceedings.

On top of this, the state also has the Arkansas Deceptive Trade Practices Act (Ark. Code Ann. § 4-88-101 et seq.). This law bans unfair and deceptive debt collection practices. It applies mainly to third-party collectors, and HOAs may be affected if they hire such contractors.

 

California

Regarding debt collection laws, California probably has some of the most detailed and comprehensive regulations in the U.S.

First, the state follows the Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788 et seq.). This law has provisions similar to the FDCPA, including protections for original creditors, including, possibly, your HOA. It also mainly applies to third-party debt collectors that the HOA may contract.

In addition, the Davis-Stirling Common Interest Development Act also lays out procedures for notifying delinquent owners about debt collection and how dispute resolution should be handled before the HOA places a lien or seeks foreclosure.

Colorado

In Colorado, HOA debt collection rules are found under the Colorado Common Interest Ownership Act (CCIOA) (Colo. Rev. Stat. § 38-33.3-316). Under this law, the association must give owners a written notice and a payment plan to settle debts. These steps must be taken before the HOA can even pursue a lien or foreclosure.

Similar to many other states, the FDCPA and its state-equivalent, the Colorado Fair Debt Collection Practices Act (Colo. Rev. Stat. § 5-16-101 et seq.), apply to third-party collectors. While these don’t directly apply to HOAs, those who may choose to employ these services must ensure they comply with regulations.

 

Connecticut

HOAs in Connecticut run under the Connecticut Common Interest Ownership Act (Conn. Gen. Stat. § 47-244 – § 47-258). Part of that said law enumerates the process of how the association should impose liens and foreclosures for delinquent properties. According to state law, the HOA needs to provide ample notice and an opportunity to dispute the debt before seeking enforcement actions.

Meanwhile, the Fair Debt Collection Act, along with the local Connecticut Consumer Collection Practices Act (CCCPA) (Conn. Gen. Stat. § 36a-645 et seq.), applies to third-party collectors who may be employed by HOAs. These regulations ensure that collection practices remain fair and non-abusive.

 

Delaware

HOAs in Delaware are allowed to put liens on delinquent properties. However, enforcement actions are only allowed if the homeowner fails to pay despite being given enough notice. State law also mandates that HOAs need to give delinquent owners due process. However, in the worst cases, your association may even seek foreclosure for the property.

If your HOA in Delaware decides to collect debt via a third-party collection agency, they must note the FDCPA. The state has no local equivalent to the said law.

Florida

Florida is another state with comprehensive HOA debt collection laws. These can be found in the Homeowners’ Association Act (Chapter 720, Florida Statutes). HOAs may record liens and initiate foreclosure for unpaid dues.

Based on this state legislation, HOAs are allowed to put a lien on properties and eventually pursue foreclosure. The legislation also gives a timeline for when the association can do this.

Before they can take enforcement actions, associations need to offer delinquent residents installment payment plans or other possible options to pay off their debt. Also, HOAs need to provide a 45-day notice revealing their intent to lien a delinquent property. It also requires an additional 45 days before HOAs can start foreclosure proceedings.

Other than this, HOAs who hire collection agencies to collect debt must follow the FDCPA.

Georgia

The federal FDCPA governs how third-party collectors need to work in the state of Georgia. It doesn’t have a state-specific law that reinforces what the federal regulations state. This means collectors need to provide debt validation and steer clear of deceptive practices.

including providing debt validation and avoiding deceptive practices. Homeowners are also entitled to request an accounting of their debt before legal proceedings move forward.

However, HOAs are allowed to record liens and seek foreclosure for delinquent properties, according to the Georgia Property Owners’ Association Act (O.C.G.A. § 44-3-232). However, before they can do this, the homeowner has the right to request debt accounting before any legal action can be done. Associations are also required to notify the residents before starting any collection actions.

Hawaii

Hawaii is another state that has its third-party collectors follow the FDCPA, which provides consumer protection laws that involve debt collection. This means collectors can’t harass or do unfair collection practices against homeowners with debt.

Additionally, based on the Hawaii Uniform Condominium Act (HRS § 514B-146), HOAs may file liens for unpaid dues and pursue foreclosure if debts aren’t resolved. But, under the same law, associations must provide the resident with at least a 30-day written notice before they can file a lien. Homeowners also have the right to ask for debt verification and dispute any charges that were made erroneously before any penalty is imposed.

Idaho

Idaho doesn’t have an equivalent to the FDCPA on a state level. However, the third-party collectors HOAs may employ still need to follow this federal rule. This includes providing debt validation notices and banning unfair and deceptive practices.

For HOAs specifically, the Idaho Code § 55-1518 allows associations to undertake enforcement actions, such as placing liens and seeking foreclosure. However, apart from providing notice, HOAs should also recognize their residents’ right to dispute any debt. Homeowners may also ask for a breakdown of their outstanding balance or any additional fees and penalties that need to be paid.

Illinois

The state of Illinois allows HOAs to record penalties and enforcement steps, such as liens and foreclosures on delinquent properties. As stipulated in the Illinois Condominium Property Act, 765 ILCS 605/9, HOAs may do so if the homeowner doesn’t take action after the association sends them a 30-day notice.

However, the said state legislation also protects the delinquent homeowners’ rights. In particular, it requires associations to provide detailed statements of a resident’s outstanding debt. It also mandates the HOA to allow homeowners to challenge or dispute any contested charges before they can file a lien.

To supplement the FDCPA, the state has the Illinois Collection Agency Act (225 ILCS 425), which adds similar protections. This mainly concerns third-party collectors and any HOA that may hire them to collect debt.

Indiana

Similar to most states, homeowners associations in Indiana can put a lien on a delinquent property. In worse cases, foreclosure proceedings are also possible, based on the Indiana Code § 32-28-14-3.

However, homeowners’ rights to fair collections are still protected under that law. It mandates associations to provide delinquent homeowners the opportunity to pay off any debts before they can escalate further legal action. Homeowners may also ask for an accounting of their debt to double-check accuracy before the association puts a lien on their home.

The state also follows the FDCPA, which doesn’t have a state-level equivalent. This means that third-party debt collectors that HOAs may hire should refrain from harassing or deceiving the people they are collecting debt from.

 

Iowa

At the base level, Iowa follows FDCPA. But it also has the Iowa Debt Collection Practices Act (Iowa Code § 537.7103) that provides additional protection. These two laws govern how collection agencies and HOAs may hire and should go about collecting debt.

HOAs in the state have the right to place liens and seek foreclosures on delinquent properties if necessary. However, state law mandates that associations must provide residents with an opportunity to resolve their debts before any legal enforcement actions are pursued.

State laws also protect homeowners from any abusive collection practices done by third-party collectors. They also have the right to get debt validation, dispute debts, and request detailed account statements.

 

Kansas

According to Kansas law (K.S.A. § 58-4623), HOAs have the right to place liens or pursue foreclosure actions. However, the law also protects homeowners’ rights regarding debt collection.

For one, the HOA needs to provide written notice before it can file a fine against a property. This gives the homeowner a chance to pay for or dispute the debt. The association also must provide clear documentation of a resident’s outstanding balance before it continues with collection efforts.

Additionally, the FDCPA requires third-party collectors to practice fair collection. They must also provide debt validation.

 

Kentucky

Kentucky follows the federal FDCPA without a state-specific equivalent. As such, provisions for third-party debt collectors, which HOAs may hire, need to make sure they are being fair and non-deceptive when collecting.

Meanwhile, specifically for HOAs, Kentucky law (KRS § 381.9167) mentions that HOAs need to send out a notice before they can place a lien in a property. Additionally, homeowners also have the right to request debt verification. With this, they may also challenge the debt if they find any inaccurate information.

 

Louisiana

In Louisiana, state law outlines how HOAs should go about debt collection. According to (La. R.S. § 9:1145), associations in the state have the right to put liens on properties or pursue foreclosure for bad cases. However, they must also provide residents with a written notice and a chance to pay for the debt before a lien is filed. With this, residents also have the right to dispute any charges and request a full accounting review of their debt balance before any legal action.

Like all other states, Louisiana also follows FDCPA, so any collecting agency needs to comply and make sure collections aren’t done unfairly or deceptively.

Maine

On the state level, Maine’s Fair Debt Collection Practices Act (Maine FDCPA) (Title 32, Chapter 109-A) largely mirrors the federal FDCPA. It doesn’t apply directly to HOAs collecting their own debts but to those who hire third-party collectors. Based on the law, these agencies must follow strict communication, harassment, and disclosure guidelines when doing collections.

In addition, under Title 33, Section 1603-116 of Maine law, HOAs can place liens on delinquent properties. However, foreclosure should be the last resort. Additionally, HOAs must provide homeowners with proper notice and give them a chance to resolve their debt.

Maryland

Maryland’s Consumer Debt Collection Act (MCDCA) (Maryland Code, Commercial Law § 14-201 et seq.) regulates debt collection and prohibits abusive practices by third-party collectors and creditors, including HOAs.

While Maryland HOAs can collect unpaid assessments and place liens on properties under Real Property § 11-110, they must comply with statutory notice requirements before initiating foreclosure.

If an HOA engages a collection agency, the agency must follow both the MCDCA and the federal FDCPA. Maryland also requires that collectors be licensed with the state’s Collection Agency Licensing Board under Business Regulation § 7-301.

Massachusetts

 

Massachusetts HOAs need to follow some strict debt collection laws in the country. More specifically, the regulations are laid out in the Massachusetts Consumer Protection Act (M.G.L. c. 93A), specifically its collection regulations (940 CMR 7.00). These laws apply to third-party collectors, including agencies hired by HOAs.

Based on these regulations, Massachusetts limits the frequency and manner of debt collection communications, prohibiting unfair and deceptive acts. Additionally, any collection agency working for an HOA must be licensed by the state under M.G.L. c. 93, § 24A.

Meanwhile, according to M.G.L. c. 183A, § 6, HOAs are allowed to put liens on a homeowner’s property if there are unpaid dues and assessments. In some cases, foreclosure can be an option. However, before they reach that point, HOAs need to give clear notices and follow state-prescribed processes.

 

Michigan

HOA collection laws in Michigan primarily include the Michigan Condominium Act (MCL 559.208). This state legislation provides HOAs the right to place liens as an enforcement action for delinquent properties. As a last resort, associations can also initiate foreclosure proceedings. However, this can only be pursued after proper notice and the opportunity to pay off the debt is already given.

In cases when an HOA decides to hire a third-party agency to collect debt, it needs to find one licensed by the Michigan Department of Licensing and Regulatory Affairs under MCL 339.901. Additionally, the state’s Regulation of Collection Practices Act (MCL 445.251 et seq.) prevents those collectors from practicing abusive collection tactics.

 

Minnesota

HOA debt collection in Minnesota usually follows FDCPA if it involves third-party collection agencies. This means HOAs need to find properly licensed agencies to do the collection for them. This also requires those agencies to avoid any harassment and deceptive tactics when collecting debt.

However, the state also provides more consumer protections under its Collection Agencies Act (Minnesota Statutes §§ 332.31 – 332.44). HOAs in Minnesota are allowed to place liens and seek foreclosure if a homeowner doesn’t pay dues under Minnesota Statutes § 515B.3-116. They can, however, only pursue enforcement actions if statutory requirements are met, including notice and cure periods. Additionally, Minnesota law prevents excessive fees and penalties in debt collection practices.

 

Mississippi

Mississippi does not have a state-specific debt collection law beyond the federal FDCPA. However, under Mississippi Code § 89-9-21, HOAs can collect unpaid assessments and place liens on properties, but foreclosure must follow due process, including proper notice.

If an HOA hires a third-party collector, the agency must adhere to federal debt collection laws. Although, unlike many other states, Mississippi does not require debt collectors to be licensed. This makes compliance with federal law the main regulatory measure.

 

Missouri

In general, Missouri follows FDCPA and has additional state regulations under the Missouri Merchandising Practices Act (MMPA) (RSMo Chapter 407). The said state law bans third-party collectors from using deceptive debt collection practices.

HOAs can place liens and foreclose for unpaid assessments under RSMo § 448.3-116 but must provide proper notice and comply with state-mandated procedures. If an HOA employs a collection agency, that agency must comply with Missouri’s licensing and fair collection regulations under RSMo § 425.010 et seq., including restrictions on harassment and misrepresentation.

 

Montana

Montana does not have a state-level equivalent to the FDCPA, relying mainly on federal regulations. However, under Montana Code Annotated § 70-23-610, HOAs can enforce lien rights and foreclose on unpaid dues. Before being able to do so, associations need to follow legal notification procedures as prescribed by state HOA collection laws.

If an HOA hires a collection agency, that agency must comply with federal debt collection laws. However, unlike most states in the country, Montana does not require licensing for collection agencies. Given this, homeowners’ protections may be based on federal HOA collection laws that prohibit unfair collection practices.

 

Nebraska

Nebraska Revised Statutes § 76-874 allow HOAs to place liens and foreclose on properties with unpaid dues. However, they must follow strict notice requirements before they can do so.

Nebraska’s Collection Agency Act (Nebraska Revised Statutes §§ 45-601 to 45-623) requires third-party debt collectors to be licensed. This does not apply to HOAs having their own collections process. Additionally, the state prohibits unfair and deceptive collection practices, providing additional protections to homeowners beyond federal laws.

 

Nevada

This state has strong debt collection laws under the Nevada Fair Debt Collection Practices Act (Nevada Revised Statutes § 649.370). This said law covers third-party collectors, including those hired by HOAs. Nevada also requires collection agencies to be licensed under NRS § 649.075.

HOAs in Nevada have broad lien and foreclosure rights under NRS § 116.3116 but must follow strict procedural requirements, including notice and dispute resolution processes. If an HOA employs a collection agency, the agency must comply with both Nevada and federal fair debt collection laws to ensure homeowners’ rights are protected.

New Hampshire

The state of New Hampshire follows the FDCPA, which applies to third-party collectors that a HOA may hire. Additionally, on a state level, it has the Consumer Protection Act (RSA 358-A:2), which bans deceptive collection practices. It offers homeowners some protection against unfair debt collection.

When it comes specifically to homeowners associations, the state law allows them to place liens on the properties of delinquent residents. As a last resort, foreclosure proceedings are allowed.

However, before your HOA can do this, they need to provide the proper notice to any homeowner in trouble. Additionally, if pursuing a foreclosure, the proceedings need to comply with N.H. Rev. Stat. Ann. § 356-B:46. The legislation mandates that a lien must be recorded before foreclosure proceedings begin.

New Jersey

New Jersey’s Fair Foreclosure Act (N.J. Stat. Ann. § 2A:50-53 et seq.) provides specific protections for homeowners. Primarily, it requires homeowners associations to follow judicial foreclosure processes for unpaid assessments.

HOAs are also allowed to record liens on properties for unpaid dues under N.J. Stat. Ann. § 46:8B-21, but they must give notice before initiating foreclosure proceedings. Additionally, New Jersey’s Consumer Fraud Act (N.J. Stat. Ann. § 56:8-1 et seq.) provides protections against unfair debt collection practices, potentially impacting HOA collection efforts.

Additionally, HOAs working with third-party collectors must comply with federal regulations.

New Mexico

In New Mexico, HOAs can place liens for unpaid dues and foreclose on properties. However, they first need to comply with what’s written under New Mexico’s Homeowner Association Act (N.M. Stat. Ann. § 47-16-4). The said state legislation mandates HOAs to provide residents with a written notice. Associations also need to provide delinquent homeowners 30 days to pay off their debt before any legal action can be made.

Third-party collectors hired by HOAs must comply with both the FDCPA and the New Mexico Unfair Practices Act (N.M. Stat. Ann. § 57-12-1 et seq.). These two laws both prohibit deceptive collection tactics. Under these laws, homeowners have the right to dispute or challenge any unfair collection attempts that may come their way.

 

New York

In New York, HOAs have the right to place liens on properties or even pursue a judicial foreclosure under N.Y. Real Prop. Acts Law § 1301. However, before an association can impose these penalties, they must give notice

While many HOAs may collect debt in-house, some hire third-party collectors. HOAs that do so must find ones that follow New York’s Department of Financial Services regulations (23 NYCRR 1.2). This law requires collectors to provide a clear disclosure of debt details and homeowner rights. They also need to follow the New York State Debt Collection Procedures Law (N.Y. Gen. Bus. Law § 600-602), which supplements the FDCPA by restricting aggressive collection tactics.

 

North Carolina

North Carolina has a Debt Collection Act (N.C. Gen. Stat. § 75-50 et seq.), which mirrors some FDCPA provisions and applies to third-party collectors. It prohibits unfair or deceptive collection practices, protecting homeowners from harassment by debt collectors.

HOAs in North Carolina also have the right to impose liens for unpaid assessments and initiate non-judicial foreclosure as enforcement actions. However, this can only be done if they meet strict notice requirements under the Planned Community Act (N.C. Gen. Stat. § 47F-3-116). According to the regulation, homeowners need to have received 15 days’ notice before a lien is filed and another 45 days before foreclosure proceedings begin.

 

North Dakota

HOA collection laws in North Dakota allow associations to place liens for unpaid dues, specifically under. N.D. Cent. Code § 47-04.1-08. However, foreclosures are only allowed as a judicial process that needs court approval.

Meanwhile, HOAs that hire third-party collection agencies need to ensure that the latter follow the FDCPA and the North Dakota Consumer Protection and Antitrust Act (N.D. Cent. Code § 51-15-02). Both federal and state collection laws prohibit misleading debt collection tactics.

 

Ohio

Ohio follows the Ohio Fair Debt Collection Practices Act (Ohio Rev. Code Ann. § 1345.091), which extends the FDCPA’s protections to all creditors, including HOAs. Additionally, HOAs can record liens for unpaid assessments and initiate foreclosure under Ohio Rev. Code Ann. § 5311.18.

However, they need to stick with Ohio’s condominium and HOA statutes. These regulations require associations to send a written notice to the homeowner before they can pursue legal action.

Under state law, the rights of homeowners to dispute debts and request validation from third-party collectors are laid out. This ensures better protection against any wrongful collection actions from third-party collection agencies that an HOA may employ.

 

Oklahoma

Under Oklahoma law (Okla. Stat. tit. 60, § 852), HOAs can place liens on properties for unpaid dues and pursue foreclosure. But similar to many other states in the country, HOAs still need to provide notice and a redemption period.

Meanwhile, similar to the FDCPA, on a state level, the Oklahoma Consumer Protection Act (Okla. Stat. tit. 15, § 753) applies to any third-party collections agency in the state. This law prohibits any deceptive collection practices and allows homeowners to challenge unfair or misleading collection efforts.

Oregon

In Oregon, HOAs can place liens for unpaid assessments under Or. Rev. Stat. § 94.709. In the same statute, associations are still allowed to do foreclosures for the worst cases, but it needs to go through judicial proceedings. The only exceptions to this are when the HOA’s governing documents allow non-judicial foreclosures.

Oregon enforces the Oregon Unlawful Debt Collection Practices Act (Or. Rev. Stat. § 646.639). This law reinforces provisions found in FDCPA. Both laws apply to third-party collectors an HOA may employ. They both prohibit harassing or deceptive debt collection tactics, providing additional protections for homeowners facing HOA debt collection.

Pennsylvania

Pennsylvania follows the Fair Credit Extension Uniformity Act (73 Pa. Stat. § 2270.1 et seq.), which extends FDCPA-like protections to all creditors, including HOAs. Meanwhile, HOAs have the power to impose a lien on a property and initiate foreclosure under 68 Pa. Stat. § 5315. The same law stipulates, however, that a judicial foreclosure is the only way possible to ensure homeowners have due process rights.

If an HOA hires a third-party collector, it must comply with both federal and state debt collection laws. Additionally, Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (73 Pa. Stat. § 201-2) protects homeowners from misleading or abusive debt collection practices.

 

Rhode Island

State law in Rhode Island (Rhode Island Condominium Act (R.I. Gen. Laws § 34-36.1-3.116) gives HOAs the ability to impose liens for unpaid assessments and pursue foreclosure. However, the same law also says they must provide a written notice.

On top of this, HOAs that hire third-party collectors need to know whether the agency they employ follows and complies with Rhode Island’s Deceptive Trade Practices Act (R.I. Gen. Laws § 6-13.1-2), which prohibits unfair or misleading debt collection practices. Doing this ensures homeowners have protection against abusive collection efforts.

 

South Carolina

In South Carolina, HOA debt collection is primarily governed by the South Carolina Consumer Protection Code (S.C. Code Ann. § 37-5-108), which incorporates provisions similar to the Fair Debt Collection Practices Act (FDCPA).

Also, HOAs can place liens on properties for unpaid dues under S.C. Code Ann. § 27-30-130 and may foreclose through a judicial process. South Carolina law requires HOAs to file a lawsuit before proceeding with foreclosure.

If an HOA in South Carolina hires a third-party debt collector, the collector must comply with both federal and state fair debt collection laws, including providing proper notices and avoiding deceptive or abusive practices.

 

South Dakota

In South Dakota, state HOA collection laws (S.D. Codified Laws § 37-24-6), prohibits deceptive trade practices in debt collection. State legislation S.D. Codified Laws § 43-45-1 also mandates that HOAs can file liens on properties for unpaid dues and may foreclose through a judicial process.

If a third-party collection agency is involved, it must adhere to FDCPA regulations and avoid unfair or deceptive practices. Additionally, HOAs must follow their governing documents when enforcing assessments and pursuing debt collection.

 

Tennessee

HOAs in Tennessee have the authority to place liens on properties with unpaid dues under Tenn. Code Ann. § 66-27-415. Associations may even foreclose a property if permitted by their governing documents. However, nonjudicial foreclosure is generally available only if the declaration allows it.

If an HOA hires a collection agency, the agency must comply with the federal FDCPA law, including proper notification and avoiding harassment.

 

Texas

Texas has stringent HOA laws under the Texas Property Code. HOAs must provide homeowners with a 30-day notice before filing a lien (Tex. Prop. Code § 209.0094) and an additional 60-day notice before initiating foreclosure (Tex. Prop. Code § 209.0091).

This state also requires that HOAs offer payment plans for delinquent dues in most cases (Tex. Prop. Code § 209.0062).

In this state, the practices of third-party debt collectors hired by HOAs are governed by the FDCPA. Additionally, HOAs must give homeowners the opportunity to resolve disputes before taking legal action.

 

Utah

Homeowners associations in Utah are allowed to place liens on properties for unpaid assessments under Utah Code Ann. § 57-8a-301. Foreclosure proceedings are also allowed, but only under certain conditions. Additionally, Utah law requires that HOAs provide proper notice to homeowners before proceeding with foreclosure (Utah Code Ann. § 57-1-24).

If an HOA hires a third-party debt collector, it must ensure compliance with federal fair debt collection practices. Utah law also encourages mediation or alternative dispute resolution before escalating collection actions.

 

Vermont

The state of Vermont has consumer protection laws that regulate debt collection. In particular, Vt. Stat. Ann. tit. 9, § 2453 prohibits unfair or deceptive acts in commerce, including debt collection.

HOAs in Vermont also have the power to file liens for unpaid dues, as granted by Vt. Stat. Ann. tit. 27A, § 3-116. In certain cases, foreclosure is possible, typically via a judicial process. On top of that, state law requires that homeowners receive proper notification before a foreclosure can proceed.

If an HOA engages a collection agency, the agency must adhere to federal laws, ensuring fair and transparent communication with homeowners regarding their debt.

 

Virginia

Virginia law allows HOAs to place liens on properties for unpaid assessments and proceed with foreclosure, particularly under Va. Code Ann. § 55.1-1833. The state also has the Virginia Debt Collection Act (Va. Code Ann. § 6.2-2000 et seq.), which provides additional regulations for debt collectors. These regulations include restrictions on unfair collection practices.

The FDCPA still applies to third-party collectors in Virginia. So, HOAs who hire these agencies need to make sure they comply with federal guidelines. Virginia law also requires HOAs to provide advance notice before taking legal action, and many associations offer payment plans to assist delinquent homeowners.

 

Washington

Washington’s Collection Agency Act (Wash. Rev. Code § 19.16.250) governs third-party debt collectors, imposing similar restrictions to the FDCPA. As for HOAs, based on Wash. Rev. Code § 64.34.364, they have the power to lien on properties and pursue foreclosure for unpaid dues.

Despite this power, associations still need to follow strict procedural requirements. These may include proper notification and providing homeowners with opportunities to resolve the debt. Additionally, HOAs that hire collection agencies must ensure compliance with both state and federal debt collection laws, which prohibit deceptive or abusive practices.

 

West Virginia

West Virginia does not have a state-specific FDCPA equivalent but follows federal regulations for third-party collectors. HOAs can file liens for unpaid assessments under W. Va. Code § 36B-3-116 and may foreclose under judicial procedures.

Here, state law also mandates that homeowners receive proper notification before a foreclosure is initiated (W. Va. Code § 46A-2-127). And, if an HOA uses a collection agency, it must comply with federal fair debt collection practices to ensure transparency and fairness in the collection process.

 

Wisconsin

HOAs can place liens on properties for unpaid assessments under Wis. Stat. § 703.165 and initiate foreclosure if necessary. Wisconsin law mandates that homeowners receive notice before foreclosure proceedings begin. If an HOA hires a third-party debt collector, the collector must comply with the FDCPA and state regulations prohibiting unfair collection tactics.

Wisconsin also has comprehensive consumer protection laws at the state level that regulate debt collection. One of them is Wis. Stat. § 427.104, which mirrors the FDCPA. It applies to third-party collectors and prohibits unfair practices.

 

Wyoming

In the state of Wyoming, homeowners associations are given the authority to place liens on properties for unpaid dues, based on Wyo. Stat. § 34-28-101. They can also foreclose under judicial proceedings under Wyo. Stat. § 34-4-103.

However, before pursuing those enforcement actions, the state law also mandates that HOAs will have to provide proper notice to homeowners before initiating foreclosure. Additionally, state laws also indicate that If an HOA works with a collection agency, the agency must comply with federal fair debt collection regulations to ensure ethical and legal collection practices.

 

Fair and Sound Collection Practices

The timely collection of dues and other fees is a must to make sure your HOA’s financial health is maintained. However, treating your fellow residents properly during debt collection is also important. By complying with proper HOA debt collection laws and acting properly, you are also building trust and transparency with your fellow residents.

An HOA management company can help your community facilitate meetings to ensure that HOA proxy voting rules are properly followed. Check out our online directory for the best one in your area!

 

RELATED ARTICLES:

• HOA Violation Laws Per State
• HOA Political Signs Rules Per State
• HOA Reserve Study Requirements By State