HOA and condo association foreclosure in Washington, D.C.

HOA and condo collection rules in Washington, D.C., step by step

• Which law applies

  Condo units

  The D.C. Condominium Act governs condo associations and gives them the lien and power of sale described here. We did not find a similar D.C. statute for homeowners associations or co-ops that are not condos, so for those, your declaration, bylaws and collection policy set most of the rules.

  D.C. Code § 42-1903.13

• The lien is automatic

  From the day an assessment is due

  Each assessment, with interest, late fees, reasonable legal fees actually incurred and collection costs, is a lien on your unit from the day it is due. No separate filing is needed. Unless your condo documents say otherwise, an assessment is past due on the 15th day and bears interest of no more than 10% a year.

  D.C. Code §§ 42-1903.12(e), 42-1903.13(a), (b)

• A required notice before legal action

  When the association says it will take legal action

  The notice must include an account statement that breaks down what is past due and when it came due, who to contact to settle, and a large-print warning that failing to pay may lead to legal action, including foreclosure, with information on free housing counseling.

  D.C. Code § 42-1903.12a

• The Notice of Foreclosure Sale

  At least 31 days before the sale

  The association must record a Notice of Foreclosure Sale of Condominium Unit for Assessments Due and send it to you by tracked delivery and first-class mail. It must say whether the sale is only for the 6-month priority amount (and so does not wipe out the first mortgage) or for more (and so is subject to the first mortgage). The sale must also be advertised in a newspaper on at least 3 days in the 15 days before it.

  D.C. Code § 42-1903.13(c)(4), (5)

• Up to 6 months ahead of your first mortgage

  The 6 months before the association acts

  For mortgages recorded after March 7, 1991, the association's lien comes ahead of the first mortgage for up to 6 months of regular budget assessments that would have come due before it filed suit or recorded a memorandum of lien. Real estate taxes still come first.

  D.C. Code § 42-1903.13(a)(1), (2)

• Your right to cure before the sale

  Any time before the foreclosure sale

  You can stop the sale by paying all past due assessments, plus any late charge or interest and the reasonable attorney's fees and costs of enforcing the lien. D.C. law does not require a payment plan for condo dues, so ask the board for one in writing. After the sale, the money goes first to the unpaid assessments and foreclosure costs, and the rest goes to whoever is legally entitled to it.

  D.C. Code § 42-1903.13(c)(2), (c)(6)

• A 3-year limit and a 10-day statement

  3 years after each assessment is due

  The lien for an assessment ends if the association does not start foreclosure or other proceedings within 3 years after it was due. You can ask in writing for a statement of unpaid assessments. If the association does not provide it within 10 days, the law says the lien is extinguished as to your unit.

  D.C. Code § 42-1903.13(e), (h)

Common questions in Washington, D.C.