Can a Hawaii HOA Foreclose Over Dues?

Unpaid assessments in Hawaii are not just a private debt — for condominiums, the Condominium Property Act gives the association a lien, and a way to recover up to six months of recent assessments from whoever takes the unit at a foreclosure sale. For planned communities, Chapter 421J and the recorded declaration work together. For your specific situation, a licensed Hawaii attorney is the right resource. This is general information, not legal advice.

Can a Hawaii condo association put a lien on my unit?

Yes. Under HRS § 514B-146, unpaid common-expense assessments are a lien on the unit, but it trails tax and government-assessment liens and any mortgage recorded before the association records a notice of its lien. After a foreclosure, the association may levy a special assessment on the buyer for up to six months of unpaid regular monthly common assessments.

For condominiums, § 514B-146(a) makes unpaid common-expense assessments "a lien on the unit with priority over all other liens," but with two key exceptions: liens for real property taxes and government assessments, and "all sums unpaid on any mortgage of record that was recorded before the recordation of a notice of a lien by the association." So a first mortgage recorded before the association records a notice of its lien generally keeps its senior position — the assessment lien does not prime an earlier first mortgage.

Hawaii's six-month feature works differently from the "super-priority" lien some states have. Under § 514B-146(j)–(k), when a mortgagee or other purchaser takes a delinquent unit through a judicial or nonjudicial foreclosure, the association may levy a special assessment against that purchaser for up to six months of unpaid regular monthly common assessments. By statute that figure excludes late charges, fines, penalties, interest, and any collection or attorney's fees. So the association recovers a capped slice of recent assessments from whoever ends up with the unit — rather than leapfrogging the first mortgage itself.

The limit matters: only the regular assessments count toward that six-month figure. Fines and fees, even if unpaid, are excluded.

Does a Hawaii condo association need a court order to foreclose?

Not for unpaid regular assessments. Under HRS § 514B-146, the lien "may be foreclosed by action or by nonjudicial or power of sale foreclosure," even without power-of-sale language in the governing documents. A lien that arises solely from fines, penalties, legal fees, or late fees is different: its foreclosure must be filed in court under part IA of chapter 667.

Under § 514B-146(a), the lien "may be foreclosed by action or by nonjudicial or power of sale foreclosure, regardless of the presence or absence of power of sale language in an association's governing documents." There is an important exception, though: under § 514B-146, an association may not use the nonjudicial / power-of-sale route to foreclose a lien that "arises solely from fines, penalties, legal fees, or late fees" — the foreclosure of such a lien "shall be filed in court pursuant to part IA of chapter 667." After a foreclosure, the law also caps a related special assessment at "the total amount of unpaid regular monthly common assessments that were assessed during the six months immediately preceding" the completed sale. Because the process can move nonjudicially and on fixed timelines, the steps and dates matter. A licensed Hawaii attorney can explain the timeline in a specific case.

Can a non-condo HOA foreclose on my home in Hawaii?

Yes. Under HRS § 421J-10.5, a planned community's unpaid assessments are a lien on the unit that may be foreclosed in court or nonjudicially under chapter 667, though a fines-only lien must go through court. Except as otherwise provided by law, priority is set by the association documents or, if they are silent, by the recordation date of the liens.

For a planned community, HRS § 421J-10.5 also makes unpaid assessments a lien on the unit, but, except as otherwise provided by law, its priority is set "as provided in the association documents or, if no priority is provided in the association documents, by the recordation date of the liens." An amendment to those documents cannot put the association's lien ahead of a mortgage recorded before the amendment. The lien may be foreclosed in court or nonjudicially under chapter 667, and the same court-only rule applies to a lien arising solely from fines, penalties, legal fees, or late fees. Chapter 421J also has a six-month special assessment against a foreclosure buyer (§ 421J-10.5(g)–(h)), although a purchaser holding a mortgage that is not subordinate to the association's lien is not liable for it (a later buyer from that mortgagee is). Because the recorded declaration still shapes priority, it matters here, and a licensed Hawaii attorney can review it with you.

What people generally do

In a Hawaii assessment-debt situation, a few points commonly matter:

• The association's records and a payoff figure show what is owed — and how much is regular assessments versus fines and fees.
• Disputed fines and regular assessments are treated separately, since only regular assessments count toward the six-month special assessment.
• The foreclosure notices and their deadlines matter, since Hawaii allows a nonjudicial sale for unpaid assessments (a fines-only lien, by contrast, must go through court).
• Mediation and the state's other dispute-resolution options exist before a sale.
• A licensed Hawaii attorney is the resource early, while options remain open.

Sources

• HRS § 514B-146 — Lien for assessments
• HRS § 514B-104 — Association; powers (fines)
• HRS Chapter 421J — Planned Community Associations
• HRS § 421J-10.5 — Lien for assessments