New owners or counties would pay dues on tax-foreclosed property

Association dues would accumulate on covered property and become a lien, a legal claim against the property for payment. The rule would cover property subject to homeowner or condo association dues that a county receives through foreclosure for unpaid property taxes. Dues would stop accumulating under this rule when the county transfers ownership, enters a lease, or decides to keep the property permanently. The secured dues could not include costs or fee increases to pay fines, penalties, settlements, or attorney fees resulting from the association breaking the law. Associations would notify the county of dues according to their dues schedule and could record the lien. For property deeded to a county on or after the effective date, dues would start when the county receives it. For property already held then, dues would start on the effective date, unless the county had already leased it or decided to keep it permanently.

The next owner or the county would pay the dues accumulated under this rule. These duties would cover dues accumulated under this rule on property taken by a county for unpaid property taxes. The next owner would owe the dues whether the county sells the property or transfers ownership under the other transfer process named in the bill. The county would owe the dues if it enters a lease or decides to keep the property permanently. The next owner would pay no later than receiving title. The county would pay no later than 30 days after entering a lease or deciding to keep the property permanently. The proposal would take effect on the 91st day after the 2026 regular legislative session ends.

The state would set aside $4.3 million for the Oregon Department of Administrative Services to distribute to Fishhawk Lake Reserve & Community, Inc. The funding would go to Fishhawk Lake Reserve & Community, Inc. for this loan repayment. The money would come from the state's General Fund. Fishhawk Lake Reserve & Community, Inc. would use it to repay a loan taken out to pay an outstanding fine imposed by the Department of Environmental Quality. The funding would cover the two-year budget period ending June 30, 2027. The proposal would take effect on the 91st day after the 2026 regular legislative session ends.