Arizona HOA Lien and Foreclosure Rules: ARS 33-1807

Quick answer: Under A.R.S. 33-1807, an Arizona planned community has a lien for assessments from the moment each assessment is due, and recording the declaration perfects it. The association may foreclose only when the owner has been delinquent for 18 months or owes $10,000 or more, whichever comes first, and the board must first make reasonable efforts to communicate and offer a reasonable payment plan. Fines and other member expenses can't be foreclosed. Before sending an account to an attorney or outside collection agency, the association must mail a specific 30-day notice by certified mail.

Collections are where Arizona HOAs face the most legal risk. Here is what the lien statute allows and the steps it requires.

What the lien covers

A. The association has a common expense lien on a property for any assessment levied against that property from the time the assessment becomes due.

If an assessment is payable in installments, the full amount becomes a lien when the first installment is due. No separate lien filing is needed:

F. Recording the declaration constitutes record notice and perfection of the common expense lien.

Member expenses are different. Fines and other member expenses are not enforceable as common expense liens, regardless of your documents. The association can get a judgment lien for them only after winning a court judgment and recording it, and that judgment lien can't be foreclosed.

When an Arizona HOA can foreclose

The association's common expense lien may be foreclosed in the same manner as a mortgage on real estate but may be foreclosed only if the owner has been and remains delinquent in the payment of any assessment or portion of the assessment for a period of eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed.

The association board of directors shall exercise reasonable efforts to communicate with the member and offer a reasonable payment plan before filing a foreclosure action.

The association can also accept a deed in lieu of foreclosure, and a court can award costs and reasonable attorney fees to the prevailing party.

Lien priority

The association's lien is ahead of everything except liens recorded before the declaration, a recorded first mortgage or first deed of trust (or certain first contracts for sale), and real estate taxes and other governmental charges. It does not affect mechanics' and materialmen's liens.

Time limit

G. A common expense lien is extinguished unless proceedings to enforce the common expense lien are instituted within six years after the full amount of the assessment becomes due.

Don't let old balances sit. Review your aging report regularly.

The 30-day notice before collections

At least 30 days before authorizing an attorney, or an outside collection agency that isn't the association's managing agent, to start collecting, the association must send the owner a written notice with this statutory language:

Your account is delinquent.

The rest of the required wording warns that if the owner doesn't bring the account current or make approved arrangements within 30 days, the account will be turned over for further collection, which could include foreclosure. Copy the full text from A.R.S. 33-1807(L). The notice must be in bold type or all capitals, include a contact for discussing payment, and go by certified mail, return receipt requested.

How payments must be applied

Unless the owner directs otherwise, A.R.S. 33-1807(K) requires payments to go, in order, to unpaid assessments, due but not delinquent assessments, authorized late charges on those assessments, reasonable collection fees and costs, and court-awarded attorney fees on those assessments. Only after that can money go to fines, other charges and interest. This overrides contrary language in management or attorney contracts.

Statements, payoffs and payment methods

• Lien statements. On written request, the association must provide a statement of unpaid liens within ten days. If a licensed escrow agent asked and the association misses the deadline, any lien for unpaid assessments then due is extinguished.
• Statements of account. Except for planned communities with fewer than 50 lots that don't use a third-party manager, the association must send statements of account showing the balance and recent ledger history as often as assessments are billed.
• Convenience fees. An agent may charge a convenience fee for card or electronic payments approximately equal to its third-party cost.
• No selling the debt. The association may not transfer ownership or control of the debt.

A collection workflow for Arizona boards

1. Send statements every billing cycle, and apply late charges only within A.R.S. 33-1803 limits.
2. Apply payments in the A.R.S. 33-1807(K) order.
3. Reach out and offer a payment plan early.
4. Send the statutory 30-day notice by certified mail before involving an attorney or outside agency.
5. Track the 18-month and $10,000 thresholds before considering foreclosure.
6. Answer lien and payoff requests within ten days; see Arizona HOA resale disclosure.

For other Arizona changes this year, read Arizona HOA Laws in 2026. Board decisions on payment plans and collections should be recorded carefully; see what to include in HOA meeting minutes.

How Dynamite helps

Dynamite Management runs owner statements, payment application and delinquency tracking for associations in any state, so your collection steps follow the statute and your records support them.

FAQ

When can an Arizona HOA foreclose? Only when the owner has been delinquent in assessments for 18 months or owes $10,000 or more, whichever comes first, measured on the filing date, and after the board offers a reasonable payment plan.

Can an Arizona HOA foreclose for unpaid fines? No. Fines and other member expenses are not common expense liens. A judgment lien for them can't be foreclosed.

How long does an Arizona HOA lien last? It is extinguished unless enforcement proceedings start within six years after the full assessment becomes due.

What notice is required before an Arizona HOA sends an account to collections? A written notice at least 30 days before authorizing an attorney or outside collection agency, in bold or all capitals, by certified mail, using the language in A.R.S. 33-1807(L).

How fast must an Arizona HOA provide a payoff statement? Within ten days of a written request. If a licensed escrow agent asked and the deadline is missed, the lien for unpaid assessments then due is extinguished.

This is not legal advice. Confirm with the current text of A.R.S. 33-1807 and your association's attorney before starting collections or foreclosure.

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