Bill > HB440

This bill modifies New Mexico's existing law regarding homeowners association (HOA) liens by restricting when an HOA can foreclose on a property. Specifically, the bill prevents HOAs from foreclosing on a lien under three conditions: if the lien is less than twelve months delinquent, if the total amount owed is less than $5,000, or if the lien consists only of fines. The bill amends Section 47-16-6 of the New Mexico Statutes Annotated, which outlines the duties of homeowners associations. Under the existing law, HOAs could foreclose on a property for any assessment or fine, but the new provision limits this power to prevent HOAs from initiating foreclosure proceedings for smaller or relatively recent debt. This change aims to provide homeowners with more protection against losing their property for minor or short-term financial disputes with their homeowners association, potentially giving owners more time and flexibility to resolve outstanding assessments or fines.

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https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=440&year=25