The 2013 session of the Nebraska Legislature saw a change in the law governing collection of homeowners association assessments. This applies to Nebraska townhome owners associations, condominium owners associations and traditional homeowners associations. In May, the Nebraska Legislature passed LB 442, which amends section 52-2001, 76-825, 76-842, 76-856, and 76-874 of the Nebraska Revised Statutes. The slip law copy of LB442 can be reviewed here. The new Nebraska HOA law contains two primary changes that homeowners associations should be aware of.
First, in order to protect the homeowners association’s lien priority, a notice of assessment will need to be recorded with the local register of deeds (or county clerk as appropriate) after the association imposes an assessment. The notice is required to contain the dollar amount of the assessment. In practice this means that the association’s lien will generally take junior priority to a resident’s home loan, but there may be some situations where it allows the association’s lien to take senior priority.
Second, LB 442 changes the law by empowering homeowners associations to require new purchasers to escrow up to six months’ of assessment installment payments to be used in the event of a delinquency. The money must be held in an interest-bearing account and when that purchaser sells the home and has paid the assessments in full, the escrowed funds and interest must be returned to the homeowner. The law does not allow associations to require escrow funds from homeowners who owner their homes prior to the law taking effect on September 6, 2013.
If you have a question about how LB 442 impacts your Nebraska town home or condo owners association, contact Omaha HOA lawyer Ben Thompson, whose law practice at Thompson Law Office includes representation of Nebraska homeowners associations. Mr. Thompson has spoken about HOA real estate issues and authored articles on HOA issues.
Thompson Law Office is a law firm that helps Nebraskans achieve the American Dream through owning homes, starting businesses, strengthening families, and shaping legacies. Learn more about the firm's general law practice here.
Latest posts by Ben Thompson (see all)
- Nebraska Law Firm Employment Opportunities - October 6, 2016
- Attorney Ben Thompson selected to 2016 Nebraska Super Lawyers list - July 22, 2016
- Start-up Legal Services from Entrepreneurship Clinic at Nebraska College of Law - December 27, 2015