On October 16, 2025, Governor Kathy Hochul signed Senate Bill S7413 into law, amending Section 339-aa of the New York Condominium Act (“Condo Act”). The amendment imposes, among other things, a new 90-day notice requirement that condominium boards must satisfy before commencing a lien foreclosure action for unpaid common charges and assessments.
The timely payment of common charges and assessments by unit owners is a critical component of condominium governance, as it ensures that associations maintain sufficient cash flow to meet their operational obligations. In light of rising costs and increasing financial pressures on boards, the prompt payment of common charges and assessments is essential to maintaining a condominium’s financial stability.
Among the various enforcement mechanisms available to a condominium board is the right to record a lien against a unit. Once recorded, such lien secures the condominium’s interest and may be foreclosed on under Section 339-aa of the Condo Act. Section 339-aa addresses the manner in which a board may commence a lien foreclosure action and the effect of such lien, including that it secures not only the amounts due at the time of recording but also all charges that become due thereafter.
The recent amendment to Section 339-aa adds an extra procedural hurdle boards must hop over before they may foreclose on a recorded lien. Before filing a lien foreclosure action, a condominium board must now provide written notice to the unit owner:
(i) At least ninety (90) days prior to the commencement of the foreclosure action;
(ii) In no smaller than 14-point font;
(iii) Stating the board’s intent to commence a lien foreclosure action;
(iv) Specifying the exact amount of arrears owed to the condominium; and
(v) Identifying the unit address.
The notice must also be sent to both the property address and any other address of record for the unit owner.
Additionally, the amended statute now expressly provides that the notice “shall inform the owner that the board intends to file an action for foreclosure to enforce the lien.” We believe this language means that the notice must be sent after the lien has been recorded. Accordingly, the earliest a board may commence a lien-foreclosure action is ninety (90) days after the date a lien is recorded.
Boards must now plan to allow for at least three months between filing a lien and initiating foreclosure proceedings and ensure that their notices strictly comply with the statute and formatting requirements. Failure to adhere to these requirements could result in delays or dismissal of such actions.
To maintain collection efficiency, boards should promptly file liens as soon as significant delinquencies arise.
Please contact our office if you would like assistance with revising your condominium’s collection procedures.