Revision: Dec. 10, 2009, midnight
HB 1340 – AS INTRODUCED
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 certain condominium liens for unpaid monthly common expenses may be granted priority over the first mortgage and may form the basis for a foreclosure sale initiated by the unit owners’ association.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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:
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 expenses assessments unpaid 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 the unit owner and the institutional lender holding the first mortgage written notice of the delinquency by certified mail and first class mail; and additionally, sends such lender notice by certified mail and first class mail 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. 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 further or different address.
2 Lien for Assessment; Notice Prior to Foreclosure Sale. Amend RSA 356-B:46, VI to read as follows:
VI. After 30 days prior written notice by certified and first class mail to the unit owner and the first mortgagee of record, of the delinquency and the intent to foreclose, the lien perfected by paragraph III may be foreclosed by the unit owners’ association under the power of sale in accordance with the provisions for mortgagees set forth in RSA 479:25. When payment or satisfaction is made of a debt secured by the lien perfected by paragraph III, said lien shall be released in the same manner as required by RSA 479:7 for mortgages. For the purposes of this section, the principal officer of the unit owners’ association, or such other officer or officers as the condominium instruments may specify, shall be deemed the duly authorized agent of the lien creditor and shall discharge said lien.
3 Effective Date. This act shall take effect January 1, 2011.