Super Lien Bill

Legislative Update by Thomas Ducharme, President

House Bill (HB) 1340, also known as the "super lien" bill has passed the House and Senate, it is now on its way to the Governor for signature!  Once signed by the Governor, the super lien bill will become effective as of January 1, 2011.  A summary of the bill follows:

• The bill provides for payment to the Association of up to six (6) months of past due regular (not special assessments) condominium fee payments when a bank forecloses on a condominium unit.
• The bill also provides for the payment of attorneys fees incurred by the Association in the collection process against the unit owner up until the time of foreclosure.
• The super lien bill covers only unit condominium mortgage loans written after January 1, 2011.  Condominium unit loans written before January 1, 2011 are not subject to the super lien provision at time of foreclosure.  However, according to the NH Bankers Association, the average New Hampshire residential condominium loan lasts only 2 1/2 years.
• The bill requires that the delinquent unit owners and the mortgage company be notified by certified mail of the Association's intent to file a lien against the unit.  However, the costs of the title search and notice provisions can be assessed to the unit owner's account.

I would like to thank all Board Members and Unit Owners who took the time to contact members of the House of Representatives and Senate to convey the need for passage of this bill.  I must say I was pleasantly surprised by the number of times in the House and Senate committee hearings I attended where House and Senate members mentioned the amount of emails and phone calls they had been receiving asking for their support for the super lien bill.

Changing subjects, HB 1470 also passed the House and Senate and goes to the Governor for his signature.  HB 1470 establishes a committee to study laws relating to condominium and homeowners associations.  HB 1470 specifically calls for the inclusion of CAI in the committee's deliberative process.  Effectively HB 1470 will review RSA 356-B (the NH Condominium Act) and offer recommendations for changes to RSA 356-B.  This study committee will become effective sometime in 2011.