Nebraska Court Says HOA Miscalculation of Assessments Did Not Invalidate Lien

Nebraska Supreme Court decision (March 13, 2015).

After the owner of property located within a common interest development governed by a homeowners association (“Association”) failed to pay assessments, the Association recorded notices of liens and filed a foreclosure action. After the Association filed the notices of lien and the complaint, while the foreclosure action was pending, it learned that it was levying assessments against the subject property in a manner that was prohibited by the Association’s governing documents. The Association recalculated the assessments and proceeded. The district court found that the Association had a valid lien against the owner’s property for delinquent assessments and ruled that the Association could foreclose its lien if the owner did not pay the back assessments within 90 days.