Arizona HOA and tax lien laws are designed to protect the HOA against non-paying homeowners. HOAs assess taxes, fees and dues to help support the organization and pay for any collective expenses for which they may be responsible. However, if an owner doesn’t pay their dues, that can be a major problem. HOAs have the power to levy a tax lien against the homeowner, and if that amount isn’t paid, they could be subject to foreclosure.

Here is a brief overview of how the HOA tax lien laws in Arizona work: Taxes are due in October: The first half of your HOA taxes are due October 1, and are considered delinquent by November 1. The second half of the taxes are due March 1 and are considered delinquent by May 1. If the taxes remain unpaid, the county treasurer will mail delinquent tax notices.
Tax liens: Tax liens are a “hold” against your property, superior to all liens except those held by the government. Essentially, you must pay the lien and all associated interest and fees before you are free to sell your property and recoup all the money paid. Your lien doesn’t change ownership in and of itself, but one way or another, the government will be paid.

Redeeming a lien: Redeeming a lien means paying the tax debt, and this can be done by the owner (or the owner’s agent or attorney), an heir of the owner or anyone else who has a claim on the property. Money is paid to the county treasurer.

When a tax lien can lead to foreclosure: A tax lien is subject to foreclosure between three and 10 years after the sale of the lien. You would file in the superior court where the property is located. Lien holders must be notified (including any applicable HOAs) and given 30 days’ notice. The owner may be responsible for attorney fees and costs, and if no one redeems, the foreclosure results in a treasurer’s deed.

How it affects your HOA: As an HOA, you can foreclose on your HOA lien—but it doesn’t mean you’ll recoup your expenses. Tax liens will take precedence over HOA liens, and your HOA lien may be extinguished, depending on the circumstances.

If your HOA is looking to levy a tax lien against one of your homeowners, call us today to find out more about potential strategies and pitfalls. Goodman Holmgren Law Group is passionate about supporting homeowners’ associations—and making your life as easy as possible.
HOA tax lien laws in Arizona

Goodman Holmgren Law Group exists to make the work of HOAs as easy as possible. For nearly a decade, we’ve worked with homeowners associations statewide to provide a full range of legal services and counsel. We specialize in Arizona HOA legal counsel, and provide tailored help for each of our clients. Are you looking for a homeowners association attorney, or do you have questions about HOA tax lien laws in Arizona? Contact us today for more information.