CHAPTER 142
HB 1340 – FINAL VERSION
03Mar2010… 0658h
2010 SESSION
05/03
HOUSE BILL 1340
AN ACT relative to condominium liens for assessments.
SPONSORS: Rep. Infantine, Hills 13
COMMITTEE: Commerce and Consumer Affairs
This bill provides that under certain circumstances, condominium liens for unpaid monthly common expenses may be granted priority over the first mortgage.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03Mar2010… 0658h
10-2233
05/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to condominium liens for assessments.
Be it Enacted by the Senate and House of Representatives in General Court convened:
142:1 Condominium Act; Lien for Assessments. Amend RSA 356-B:46, I to read as follows:
I.(a) The unit owners’ association shall have a lien on every condominium unit for unpaid assessments levied against that condominium unit in accordance with the provisions of this chapter and all lawful provisions of the condominium instruments, if perfected as hereinafter provided. The said lien, once perfected, shall be prior to all other liens and encumbrances except [(a)] (1) real estate tax liens on that condominium unit, [(b)] (2) liens and encumbrances recorded prior to the recordation of the declaration, and [(c)] (3) sums unpaid on any first mortgages or first deeds of trust encumbering that condominium unit and securing institutional lenders.
(b) The provisions of this paragraph shall not affect the priority of mechanics’ and materialmen’s liens.
(c) Notwithstanding subparagraph (a), the lien for regular monthly common assessments unpaid with respect to a residential condominium unit during the 6-month period immediately preceding the filing of the memorandum specified in paragraph III, together with all costs of collection, including reasonable attorney’s fees, shall be prior to the first mortgage; provided that the unit owners’ association sends, within 70 days of the occurrence of any delinquency, the unit owner and the institutional lender holding the first mortgage written notice of the delinquency by certified mail and first class mail that the account is at least 60 days delinquent; and additionally, sends such lender notice by certified mail and first class mail, at least 30 days prior, of its intent to file said memorandum of lien. The lien shall not include any amounts attributable to special assessments, late charges, fines, penalties, or interest assessed by the unit owners’ association, nor shall the lien apply to regular assessments or costs of collection coming due prior to the effective date of this section. In giving the foregoing notices, the unit owners’ association may rely on the records of the applicable registry of deeds as to the address of the first institutional lender unless such lender has notified the unit owners’ association by certified mail of a different address.
(d) The priority lien rights established under subparagraph (c) shall not entitle or permit the unit owners’ association to assert more than one priority lien unless and until the existing priority lien is first discharged by the unit owners’ association. The priority lien rights established under subparagraph (c) also shall not apply to any mortgage executed prior to the effective date of this section.
(e) After notification to the first mortgage institutional lender of a delinquency, in addition to any previously agreed to or required escrow amounts, the institutional lender may also require a residential unit owner to place an amount equal to not more than 6 months of current regular assessments in escrow to cover the cost of any delinquency.
142:2 Effective Date. This act shall take effect January 1, 2011.
Approved: June 14, 2010
Effective Date: January 1, 2011