Connecticut Seal

General Assembly

 

Raised Bill No. 6662

January Session, 2013

 

LCO No. 4564

 

*04564_______JUD*

Referred to Committee on JUDICIARY

 

Introduced by:

 

(JUD)

 

AN ACT CONCERNING THE RECOUPMENT OF MONEYS OWED TO A UNIT OWNERS' ASSOCIATION DUE TO NONPAYMENT OF ASSESSMENTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 47-258 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):

(b) A lien under this section is prior to all other liens and encumbrances on a unit except (1) liens and encumbrances recorded before the recordation of the declaration and, in a cooperative, liens and encumbrances which the association creates, assumes or takes subject to, (2) a first or second security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent, or, in a cooperative, a first or second security interest encumbering only the unit owner's interest and perfected before the date on which the assessment sought to be enforced became delinquent, and (3) liens for real property taxes and other governmental assessments or charges against the unit or cooperative. The lien is also prior to all security interests described in subdivision (2) of this subsection to the extent of (A) an amount equal to the common expense assessments based on the periodic budget adopted by the association pursuant to subsection (a) of section 47-257 which would have become due in the absence of acceleration during the [six] twelve months immediately preceding institution of an action to enforce either the association's lien or a security interest described in subdivision (2) of this subsection and (B) the association's costs and attorney's fees in enforcing its lien. A lien for any assessment or fine specified in subsection (a) of this section shall have the priority provided for in this subsection in an amount not to exceed the amount specified in subparagraph (A) of this subsection. This subsection does not affect the priority of mechanics' or materialmen's liens or the priority of liens for other assessments made by the association. This subsection shall not preclude an association from seeking payment of unpaid assessments that are not included in the lien amount specified under subparagraph (A) of this subsection. Upon the conclusion of a foreclosure action, at the time of closing on the unit, the association may be reimbursed for any unpaid assessments that accrued in the twelve-month period immediately following the lien period specified under subparagraph (A) of this subsection.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2013

47-258(b)

Statement of Purpose:

To: (1) Extend the number of months for which common expense assessments due a common interest unit owners' association may be counted for purposes of a lien from six months to twelve months; and (2) provide greater statutory protections to unit owners' associations seeking reimbursement for unpaid assessments that are incurred during the pendency of a foreclosure action.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]