Quick Answer: Can My HOA Foreclose in Arizona?
Yes, but with significant limits. As of September 26, 2025, Arizona HOAs cannot foreclose unless you owe $10,000 or more in assessments OR are 18 months delinquent—whichever comes first. The HOA must also offer a payment plan before filing. Fines and legal fees don't count toward the $10,000 threshold.
HOA foreclosure is one of the most frightening prospects for Arizona homeowners. The idea that your community association could take your home over unpaid dues feels fundamentally unfair—and for years, the thresholds were alarmingly low.
That changed with SB 1494, signed into law in 2025. Arizona dramatically raised the bar for HOA foreclosures, giving homeowners real protection against losing their homes over relatively small debts.
This guide covers everything you need to know: the new thresholds, how HOA liens work, what rights you have, and what to do if you're behind on assessments.
What Changed Under SB 1494 (Effective Sept 26, 2025)
| Old Law | New Law (2025+) | |
|---|---|---|
| Amount Threshold | $1,200 | $10,000 |
| Time Threshold | 12 months | 18 months |
| Payment Plan Required | No | Yes |
Note: These new thresholds apply to Planned Communities (HOAs). Condominiums remain at the old $1,200/12-month threshold.
How Arizona HOA Liens Work
Before diving into foreclosure rules, you need to understand how HOA liens operate. When you buy into a planned community in Arizona, you automatically consent to the HOA having a lien on your property for any unpaid assessments.
What Is an HOA Lien?
An HOA lien is a legal claim on your property that arises automatically the moment an assessment becomes due. The HOA doesn't have to file anything to create the lien—it exists by operation of law.
The lien includes:
- • Unpaid assessments (regular and special)
- • Late charges
- • Reasonable collection fees
- • Reasonable attorney fees
Arizona's "Super Lien" Status
Arizona gives HOA liens significant priority over other debts—sometimes called "super lien" status. An HOA lien is senior to (meaning it gets paid before):
- Second mortgages
- Home equity lines of credit (HELOCs)
- Judgment liens
- Most other creditor liens
However, the HOA lien is junior to (meaning it gets paid after):
- Liens recorded before the HOA declaration
- First mortgages and deeds of trust
- Real estate taxes and government assessments
Important: What's NOT Included in the Lien
Under Arizona law (A.R.S. § 33-1803), fines and penalties cannot be included in the assessment lien. This means your HOA cannot foreclose based on unpaid fines—only unpaid assessments and collection costs.
The New Foreclosure Thresholds
SB 1494 fundamentally changed when an HOA can pursue foreclosure. The new rules are clear:
When Can an HOA Foreclose? (After Sept 26, 2025)
An Arizona HOA may foreclose only if BOTH conditions are met:
- 1.The owner is delinquent for 18 months OR owes $10,000+ in assessments (whichever comes first)
- 2.The board has made reasonable efforts to communicate and offered a reasonable payment plan
Critical: The $10,000 threshold excludes fines, late fees, and legal costs—only actual assessments count.
What This Means in Practice
Let's put this in perspective. If your monthly HOA assessment is $300:
- Under the old law: Just 4 months of missed payments ($1,200) could trigger foreclosure
- Under the new law: You'd need to miss 18 months of payments ($5,400) OR accumulate $10,000 in assessment debt
For most Arizona homeowners, the 18-month rule will kick in before the $10,000 threshold. But for communities with high assessments, the dollar amount becomes the limiting factor.
Condominiums Are Different
SB 1494 applies only to Planned Communities governed by A.R.S. Title 33, Chapter 16. Condominiums (governed by Chapter 9) still operate under the old thresholds: $1,200 or 12 months, whichever comes first. However, condos must also offer a payment plan before foreclosure.
The Arizona HOA Foreclosure Process
Even when the thresholds are met, foreclosure doesn't happen overnight. Arizona requires HOAs to follow a specific process.
Step 1: Pre-Collection Notice
Before sending your account to collections, the HOA must provide 30 days' written notice by certified mail. The notice must include specific language informing you that your account will be turned over for collection if not resolved.
Step 2: Payment Plan Offer
Under SB 1494, the board must make reasonable efforts to communicate and offer a reasonable payment plan before filing a foreclosure action. This is now mandatory—not optional.
Step 3: Judicial Foreclosure
Arizona requires judicial foreclosure for HOA liens. This means the HOA must file a lawsuit in court—they cannot simply sell your home at auction like some states allow. This gives you:
- Notice of the lawsuit and opportunity to respond
- The right to present defenses in court
- Court oversight of the entire process
Step 4: Redemption Period
After a judicial foreclosure sale, Arizona provides a redemption period—typically 30 days if the property is determined to be abandoned. During this time, you can buy back your home by paying the full amount owed plus costs.
Time Limits on HOA Collection
Arizona places important time limits on HOA collection efforts:
Lien Expiration
An HOA lien is extinguished after 6 years if the HOA doesn't file a foreclosure action.
Lawsuit Deadline
The HOA can sue for unpaid assessments for up to 6 years (Arizona's contract statute of limitations).
Frequently Asked Questions
Can my HOA foreclose over just fines?
No. Under Arizona law, fines and penalties cannot be included in the assessment lien. Your HOA can only foreclose based on unpaid assessments and reasonable collection costs.
What if I'm a few months behind but under $10,000?
Your HOA cannot foreclose until you've been delinquent for 18 months OR owe $10,000+. However, they can still pursue other collection actions like small claims court or turning your account over to a collection agency.
Does this apply to condos?
No. The new $10,000/18-month thresholds apply only to Planned Communities (traditional HOAs). Condominiums still operate under the old $1,200/12-month thresholds, though they must also offer payment plans.
Can the HOA sell my home without going to court?
No. Arizona requires judicial foreclosure for HOA liens. The HOA must file a lawsuit and get a court judgment before any foreclosure sale can occur.
What if I can't afford to pay in full?
Under SB 1494, your HOA must offer a reasonable payment plan before pursuing foreclosure. Contact your HOA or management company immediately to negotiate a plan you can afford.
What You Should Do
If You're Behind on Assessments
- 1.Don't ignore it. Even with the new protections, debt continues to accrue and can eventually reach foreclosure thresholds.
- 2.Request a payment plan. Your HOA is now required to offer one before foreclosure. Get it in writing.
- 3.Know your numbers. Track exactly how much you owe in assessments only—fines don't count toward foreclosure thresholds.
- 4.Respond to all legal notices. If you receive a lawsuit, you must respond within the deadline or risk a default judgment.
- 5.Consult an attorney if foreclosure proceedings begin. Many offer free consultations for HOA disputes.
For HOA Board Members
- 1.Update your collection policy to reflect the new $10,000/18-month thresholds effective September 26, 2025.
- 2.Document payment plan offers for all delinquent accounts—this is now a prerequisite for foreclosure.
- 3.Train management and board members on the new requirements to avoid procedural violations.
- 4.Ensure liens exclude fines—only assessments and collection costs can be included.
The Bottom Line
Arizona's new foreclosure thresholds represent a major victory for homeowner rights. The jump from $1,200 to $10,000—and from 12 months to 18 months—means that families won't lose their homes over a few missed payments.
But these protections work best when you engage proactively. If you're behind on assessments, reach out to your HOA before the situation escalates. Request a payment plan, document everything, and know your rights under the new law.
For board members, compliance with SB 1494 isn't optional. Update your policies, train your team, and ensure every foreclosure action meets the new legal requirements.