HOA and condo association foreclosure in Connecticut

HOA and condo collection rules in Connecticut, step by step

• Which law covers your community

  First step

  The Common Interest Ownership Act applies to common interest communities created in Connecticut on or after January 1, 1984. Its lien section, its powers section and its hearing section also apply to older communities for events after that date, without cancelling older declaration terms. A group funded only by voluntary payments is not a common interest community.

  Conn. Gen. Stat. §§ 47-202(9), 47-214, 47-216

• The lien is automatic and includes fines

  From the day an assessment or fine is due

  The association has a statutory lien for assessments and fines, and unless the declaration says otherwise, reasonable attorney's fees, late charges and interest are enforced the same way. The recorded declaration is the notice, so no separate lien filing is needed. Fines can be charged only after notice and an opportunity to be heard.

  Conn. Gen. Stat. §§ 47-258(a), (d), 47-244(a)(11)

• When the association can sue to foreclose

  You owe at least 2 months of common charges

  The association cannot start a foreclosure unless you owe at least two months of regular common charges, it has sent you a demand for payment with a copy to your mortgage holder, and the board voted to foreclose on your unit or has a standard policy that covers it. At least 60 days before filing, it must mail your first and second mortgage holders a notice of the amount owed and its intent to foreclose.

  Conn. Gen. Stat. § 47-258(m)

• Priority over your mortgage

  Up to 9 months of common charges plus costs

  In a foreclosure case, the lien comes ahead of a first or second mortgage for up to nine months of regular common charges, not counting late fees, interest or fines, plus the association's costs and reasonable attorney's fees. If the 60-day notice to lenders was skipped, the nine months keeps its priority but the costs and fees do not.

  Conn. Gen. Stat. § 47-258(b), (m)(5)

• Foreclosure goes through court

  Must start within 3 years

  The lien is foreclosed in like manner as a mortgage, which in Connecticut means a Superior Court case, and every part of any sale must be commercially reasonable. The court can appoint a receiver to collect what you owe during the case, and the judgment includes costs and attorney's fees for the winner. The lien ends unless enforcement starts within three years, with extra time if you file bankruptcy.

  Conn. Gen. Stat. § 47-258(e), (g), (j), (k), (n)

• Not eligible for foreclosure mediation

  Condo and HOA lien cases

  The Judicial Branch's foreclosure mediation program is for mortgage foreclosures, and cases filed to foreclose a condominium lien are not eligible. Talk with the association early, and call Statewide Legal Services of Connecticut if you are served.

  Conn. Gen. Stat. § 49-31k

• Get a statement of what you owe

  Due 10 business days after your request

  Ask the association in a written record for a statement of unpaid assessments. It must give you one in recordable form within 10 business days, and the statement binds the association. Compare it with your records and ask for a full itemized ledger.

  Conn. Gen. Stat. § 47-258(h)

Common questions in Connecticut