HOA and condo association foreclosure in Kentucky

HOA and condo collection rules in Kentucky, step by step

• Which law covers your community

  Check your recorded declaration

  Condos created after January 1, 2011 are governed by the Kentucky Condominium Act, KRS 381.9101 to 381.9207, and its lien section also applies to older condos for events after that date. Older condos were created under the Horizontal Property Law, KRS 381.805 to 381.910. Homeowners associations that are not condos are covered by the Planned Community Act, KRS 381.785 to 381.801, effective June 29, 2023, though it does not undo provisions in documents recorded before then.

  KRS 381.9103, 381.785, 381.786

• Condo lien starts when a charge comes due

  When an assessment or fine becomes due

  A condo association has a lien on your unit for assessments and fines from the time they come due, and unless the declaration says otherwise, late charges, reasonable collection costs, attorney fees and interest are secured too. Recording the declaration perfects the lien, so no separate lien filing is needed. Past due condo assessments can carry interest of up to 18% a year.

  KRS 381.9193(1), (4); 381.9191(2)

• HOA lien after 30 days unpaid, once recorded

  30 days after a charge is due

  A planned community association has a continuing lien for assessments, special assessments and other charges, plus related interest, fines, late fees, collection costs and reasonable attorney fees, that stay unpaid 30 days after coming due. Before charging you a fine, damages or an individual assessment, the board must give you written notice and a chance to be heard. Late fees and interest are set by the board but cannot exceed the maximum allowed by law.

  KRS 381.799(1), 381.797(2), 381.796(4)

• Where the lien ranks against your mortgage

  Depends on recording dates

  A condo lien comes ahead of other liens except those recorded before the declaration, a mortgage recorded before the assessment became delinquent, and tax and government liens. A recorded HOA lien comes ahead of other liens except tax and government liens and any mortgage or lien recorded before it. In practice, a first mortgage recorded when you bought the home usually stays ahead.

  KRS 381.9193(2), 381.799(2)

• Foreclosure through court, within 5 years for condos

  Condo: suit within 5 years after the full amount is due

  A condo lien is foreclosed in like manner as a mortgage, and it is extinguished unless enforcement starts within 5 years after the full amount becomes due. The winner of the case gets costs and reasonable attorney fees. The Planned Community Act does not spell out how an HOA forecloses, so check your declaration and get legal help if you are sued.

  KRS 381.9193(1), (5), (7)

• Ask for a binding payoff statement

  Condo: within 10 business days of a written request

  A condo association must give you, on written request, a recordable statement of unpaid assessments within 10 business days, and the statement binds the association. Ask for it in writing and keep a copy. We found no Kentucky statute that requires a payment plan, so ask the board in writing for one.

  KRS 381.9193(8)

• Common areas, but not your road

  While you are behind

  If you do not pay an assessment, a planned community association can deny you access to common areas. It cannot block a road in the community that gives direct access to your lot.

  KRS 381.797(6)

Common questions in Kentucky