New York’s New 90-Day Notice Rule Transforms HOA Foreclosure Protection for Homeowners in 2024

New York homeowners facing unpaid homeowner association (HOA) assessments gained significant new protections in 2024 with groundbreaking legislation that fundamentally changes how associations can pursue foreclosure actions. As of October 16, 2025, a new law (AB 3470) requires HOAs and condominium boards to provide a 90-day notice before starting any foreclosure action to enforce a lien for unpaid common charges, assessments, fines, or fees. This legislative change represents a critical shift in homeowner protection, providing additional due process and time for financially distressed property owners to address their obligations.

Understanding HOA Assessment Collection Powers in New York

The COA or HOA can usually get a lien on your home if you become delinquent in paying the assessments. This lien power represents one of the most significant enforcement tools available to homeowners associations in New York. Under New York law the Board of Managers of a condominium or townhouse development is granted a statutory lien for unpaid Homeowner’s Association (“HOA”) dues and fees, generally referred to as Common Charges. This lien is superior to all other liens except: property and school taxes; a recorded first mortgage; a recorded “governmental-grant type” of second mortgage.

The lien process begins when homeowners fall behind on their assessment payments. A verified notice of lien, usually denominated as a Notice of Lien for Unpaid Common Charges, must be filed in the County Clerk’s Office where the property is located before the HOA lien can be foreclosed. Such a lien, once filed, is effective for a period of six years after filing, can be foreclosed in the same manner as a mortgage and, unlike in the mortgage scenario, the Board of Managers can simultaneously sue the unit owner for a money judgment.

The New 90-Day Notice Requirement: Enhanced Consumer Protection

The new legislation addresses a critical gap in homeowner protection by mandating advance notice before foreclosure proceedings begin. By requiring homeowners’ associations to give notice of foreclosure proceedings to residents pursuant to a lien for unpaid charges, it allows for additional due process for the resident, as well as notification of the charges and the amount owed. AT LEAST NINETY DAYS PRIOR TO THE COMMENCEMENT OF A FORECLOSURE ACTION TO ENFORCE A LIEN FOR UNPAID COMMON CHARGES, ASSESSMENTS, FEES OR FINES OWED TO AN INCORPORATED HOMEOWNERS’ ASSOCIATION, WHICH IS PERMITTED PURSUANT TO THE GOVERNING DOCUMENTS OF SUCH ASSOCIATION, THE BOARD OR OTHER ENTITY REPRESENTING THE ASSOCIATION SHALL PROVIDE NOTICE TO THE OWNER AT THE PROPERTY ADDRESS AND ANY OTHER ADDRESS OF RECORD, IN AT LEAST FOURTEEN-POINT TYPE, THAT THE ASSOCIATION INTENDS TO FILE AN ACTION FOR FORECLOSURE TO ENFORCE THE LIEN AND SHALL STATE THE ADDRESS OF THE PROPERTY AND THE SPECIFIC AMOUNT DUE.

This enhanced notice requirement serves multiple protective purposes. It should not be risked due to unpaid fines that a homeowner may not have known about or may not have been able to tend to right away (potentially because of loss of employment, physical injury, etc.). The 90-day window provides homeowners with crucial time to explore alternatives such as payment plans, loan modifications, or other debt resolution strategies.

HOA Foreclosure Process and Homeowner Rights

State law says that a COA lien may be foreclosed in the same manner as a mortgage of real property. So, the foreclosure will be judicial. This means HOA foreclosures in New York must go through the court system, providing homeowners with opportunities to present defenses and negotiate settlements.

A common misconception among homeowners is that staying current on mortgage payments protects them from HOA foreclosure. A common misconception is that the association can’t foreclose if you’re current with your mortgage payments. But an association’s right to foreclose isn’t dependent on whether you’re current on your mortgage payments. A common misconception is resi- dents can sometimes think even though they are up to date on their mort- gage payments, they cannot be foreclosed on, but they can.

When Foreclosure Prevention Becomes Essential

For homeowners facing HOA foreclosure threats, understanding available options becomes critical to preserving homeownership. Professional legal assistance can provide invaluable guidance in navigating these complex proceedings. Experienced attorneys specializing in Foreclosure Prevention can help homeowners understand their rights, negotiate with associations, and explore alternatives such as payment plans or bankruptcy protection when appropriate.

A Chapter 13 bankruptcy filing provides several options to a homeowner wanting to “save” their condo or townhouse from an HOA foreclosure based upon unpaid Common Charges. If a homeowner in an HOA foreclosure wants to “save” the condo or townhouse a Chapter 13 bankruptcy is best designed to achieve this goal and provides the following options: Cure the arrears: The past due HOA payments can be repaid thru your Chapter 13 Plan over a three to five-year period; Strip off the HOA lien: If the condo is worth less than the amount owed on the first mortgage the Lien can be Stripped Off just like any other type of junior lien.

Expert Legal Guidance for HOA Disputes

Since 1993, Ronald D. Weiss, P.C. provides expert bankruptcy, foreclosure defense & debt solutions in Long Island. Six (6) veteran attorneys with many years of combined legal experience. With over 30 legal professionals on our team, we have the resources to handle your important legal matter. The firm’s extensive experience includes representing cooperative shareholders and condominium owners in disputes with their homeowners associations or co-op boards over community rules, fines, and potential eviction actions.

Our main office, situated on Route 110 in Melville, at the border of Nassau and Suffolk, is easily accessible from major roadways such as the LIE, Northern and Southern State Parkways, Old Country Road, and Jericho Turnpike. Getting initial information and advice is free. Our approach is personalized to your specific situation and goals.

Looking Forward: Protecting Your Home in 2024

The new 90-day notice requirement represents a significant victory for homeowner rights in New York, but it doesn’t eliminate the underlying obligation to pay HOA assessments. It’s crucial for the HOA to enforce timely payment to ensure a steady cash flow. Late fees and fines can be imposed for unpaid dues to encourage compliance. In cases of non-payment, the HOA may take legal action, which could include placing a lien on the property.

For homeowners struggling with HOA assessments, the key is early intervention. The new law provides a 90-day window to explore options, but waiting until the last minute limits available alternatives. Whether through direct negotiation with the association, payment plan arrangements, or more comprehensive debt relief strategies, taking action promptly can preserve homeownership and protect your most valuable asset.

Understanding these new protections and working with experienced legal counsel can make the difference between losing a home and finding a sustainable path forward. The enhanced notice requirements in New York’s 2024 legislation provide homeowners with unprecedented opportunities to address HOA debt before facing the devastating consequences of foreclosure.