HOA and condo association foreclosure in Alaska

HOA and condo collection rules in Alaska, step by step

• Which law covers your community

  First step

  The Common Interest Ownership Act covers condos, planned communities and cooperatives created in Alaska after January 1, 1986. Its lien section also applies to older communities for events after that date, but an older condo created under the Horizontal Property Regimes Act keeps any declaration terms that conflict with it. A small planned community with very low dues may be covered by only a few sections.

  AS 34.08.010, 34.08.030, 34.08.040

• The lien is automatic

  From the day an assessment or fine is due

  The association has a lien on your unit for assessments and fines from the day they come due. The recorded declaration is the notice, so the association does not have to record a separate claim of lien. Unless the declaration says otherwise, late charges, fines and interest are enforced the same way as assessments.

  AS 34.08.470(a), (d)

• Fines need notice and a chance to be heard

  Before a fine is charged

  The association can charge a reasonable late fee for unpaid assessments. It can fine you for breaking the declaration, bylaws or rules only after notice and an opportunity to be heard.

  AS 34.08.320(a)(11)

• Foreclosure goes through court

  Must start within 3 years of the due date

  In a condo or planned community, the association must foreclose its lien through a court action in district or superior court, not a trustee's sale. The court can add the cost of the lien and a reasonable attorney fee. The lien ends if the association does not start enforcing it within three years after the full amount came due.

  AS 34.08.470(e), (j)(1); AS 34.35.005

• Priority over your mortgage

  Up to 6 months of dues

  The lien comes ahead of a first mortgage recorded before the dues became delinquent only for up to six months of regular budget assessments before the association started its enforcement action. Taxes come first. Your mortgage is still your debt, so keep paying it.

  AS 34.08.470(b)

• Homestead exemption does not apply

  Any association lien

  Alaska's homestead exemption does not protect your home from this lien. A court judgment for the association can be collected by execution.

  AS 34.08.470(b), (g)

• Get a written statement of what you owe

  Due 10 business days after your request

  Ask the association in writing for a statement of unpaid assessments. It must give it within 10 business days, and the statement is binding on the association. Compare it with your own records and dispute errors in writing.

  AS 34.08.470(h)

Common questions in Alaska