Serving on the board for a homeowners association (HOA) can put a lot of pressure on people. They may find themselves at odds with their neighbors as they try to improve the community or maintain HOA standards.
They may also sometimes need to engage in enforcement actions that feel uncomfortable. For example, if a property owner has failed to pay their monthly fees or fines imposed for non-compliance with community rules, the HOA might need to pursue a lien against their property to ensure the right to collect on the debt.
How high does a past-due balance have to grow before a lien for enforcement purposes is an option?
There is no minimum for securing a lien
State statutes do not impose a minimum amount of fees or fines for an HOA to seek a lien. Once a homeowner has fallen behind on their financial obligations, the HOA can take legal action to use their property as the collateral for the debt.
Especially if the amount is small, a homeowner aware of an attempt to secure a lien is likely to defend their ownership interest by paying what they owe by whatever means necessary. However, if a homeowner ignores what they owe, then the HOA could move to foreclose on the property to recover the unpaid balance due. In that specific situation, the total amount due must be at least $1,000, if not more.
Properly pursuing collection activities, including placing liens on real property, can help HOAs protect their authority and the character of the community. HOA board members concerned about noncompliant residents may need assistance as they initiate collection efforts, and that’s okay.
