HOA and COA Laws and Foreclosures in Louisiana

If you live in a planned community in Louisiana, a condominium owners' association (COA) or homeowners' association (HOA) probably establishes the rules for the neighborhood and manages shared spaces. These associations are governed by a complex body of state laws that determine the rights and responsibilities of the association and homeowners in the community. Generally, property owners who are members of a COA or an HOA have to pay assessments (dues) to the association. If you fail to pay those dues, the COA or HOA may foreclose.

Louisiana homeowners should learn about their rights, obligations, and under what circumstances an association may foreclose. This article explains Louisiana HOA foreclosure laws, as well as COA laws.

Summary of COA and HOA Foreclosure Laws in Louisiana

If your home is part of a COA or an HOA in Louisiana and you fall behind in assessments:

• The COA or HOA can usually get a lien on your home if you become delinquent in paying the assessments.
• After you default on the assessments, the COA or HOA may foreclose.
• Lien priority determines what happens to other liens, like a mortgage, if a COA or HOA lien is foreclosed.

If the COA or HOA initiates a foreclosure, you might have a defense to the action, such as the association charged you too much, imposed unreasonable fees, or failed to follow state laws.

Or you might be able to negotiate a way to get caught up on the overdue amounts and save your home. For example, you might be able to pay off the entire delinquency, negotiate a reduced payoff amount, or enter into a repayment plan.

What Are Louisiana's COA and HOA Foreclosure Laws?

The Louisiana Condominium Act (La. Rev. Stat. §§ 9:1121.101 through 9:1124.115) governs COA activities in Louisiana, while the Louisiana Homeowners Association Act and subsequent laws covering privileges (see below) (La. Rev. Stat. §§ 9:1141.1 through 9:1148) govern HOAs. As of January 1, 2025, a new law applies to planned communities formed after that date. Existing planned communities are affected only if their documents don't address specific issues covered by the new law.

The specific rules regarding the operation of your particular COA or HOA can be found in the association's governing documents, like the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) or Declaration of Condominium and bylaws.

Can a COA or an HOA Foreclose in Louisiana?

When you buy a single-family home, townhome, or condominium that's part of a planned community with covenants, you'll most likely pay fees and assessments, often collectively called "assessments," to a COA or HOA. If you fall behind in the assessments, the association will likely initially try to collect the debt using traditional methods. For instance, the association will probably call you and send letters. But if those tactics don't get you to pay up, the association might try other ways to collect from you. The association might take away your privileges to use the common facilities or file a lawsuit for a money judgment against you.

Based on the association's Declaration of Covenants, Conditions, and Restrictions (CC&Rs) or Declaration of Condominium and state law, most HOAs and COAs also have the power to get a lien on your property if you become delinquent in assessments. Once you fall behind in payments, a lien will usually automatically attach to your property. Sometimes, the association will record its lien with the county recorder to provide public notice that the lien exists, regardless of whether state law requires recording.

An assessments lien clouds the title to the property, hindering your ability to sell or refinance the home. In addition, the property can also be foreclosed to force a sale to a new owner—even if the property has a mortgage.

How COA and HOA Liens Work in Louisiana

In Louisiana, a COA or HOA has what's called a "privilege" (an assessments lien) if the owner fails to pay the assessments. To be preserved, the COA or HOA must record a "claim of privilege" in the mortgage records in the parish where the property is located. (La. Rev. Stat. § 9:1123.115(A)(2), § 9:1146 (2025).)

What Types of Charges Can Lead to Foreclosure?

A COA or HOA in Louisiana is generally permitted to include the following charges in its lien:

• unpaid assessments
• any fines or late fees in excess of $250 (COAs)
• all other unpaid fees, charges, fines, penalties, and interest (HOAs)
• reasonable attorneys' fees, and
• interest. (La. Rev. Stat. § 9:1123.115(A)(1), § 9:1146 (2025).)

Further, if a condo unit owner fails to timely pay the assessments for a period of three months or more during any eight-month period and the COA provides notice to the owner as legally required, the COA may accelerate one year of condo fees in advance and file a privilege for this amount. (La. Rev. Stat. § 9:1123.115(A) (2025).)

For HOAs, if the lot owner fails to timely pay the assessments for common areas for a period of three months or more during any eight-month period after the association has provided notice of delinquency, the association may accelerate the assessment on the common areas for a twelve-month period and file a statement of privilege for the accelerated sums. (La. Rev. Stat. § 9:1141.32 (2025).)

Notice of a COA or HOA Lien in Louisiana

A COA must provide seven days' notice to the owner before filing the claim of privilege. Notice must be by personal service, or registered or certified mail, and include the date the assessment became delinquent or accelerated. (La. Rev. Stat. § 9:1123.115(A)(3) (2025).)

An HOA must serve the delinquent owner a demand for payment by personal delivery, email, or any other method that provides notice. (La. Rev. Stat. § 9:1146). The owner gets 30 days after delivery of the written demand to deliver payment for the amount owed to the association. After the 30 days expire, the association may file its sworn statement, creating the privilege. (La. Rev. Stat. § 9:1146 (2025).)

COA and HOA Lien Foreclosures in Louisiana

Once a COA or HOA has a lien, it may foreclose.

Statute of Limitations for COA and HOA Liens

A COA privilege is extinguished if a notice of filing a lawsuit is not recorded within five years after recording the privilege. (La. Rev. Stat. § 9:1123.115(B) (2025).)

An HOA must initiate an action to enforce the lien within five years after recording the privilege. (La. Rev. Stat. § 9:1148 (2025).)

COA and HOA Liens and Your Mortgage

A common misconception is that the association can't foreclose if you're current with your mortgage payments. But an association's right to foreclose isn't dependent on whether you're up to date on your mortgage. Instead, lien priority determines what happens in a foreclosure.

What Is Lien Priority?

The priority of liens establishes who gets paid first following a foreclosure sale and often determines whether a lienholder will get paid at all. Liens generally follow the "first in time, first in right" rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. A first lien has a higher priority than other liens and gets the first crack at the foreclosure sale proceeds.

If any proceeds are left after the first lien is paid in full, the excess proceeds go to the second lienholder until that lien is paid off, and so on. A lien with a low priority might get nothing from a foreclosure sale.

But state law or an association's governing documents can adjust lien priority.

COA Lien Priority in Louisiana

A COA's assessments lien is prior to all other liens and encumbrances, except for:

• privileges, mortgages, and encumbrances recorded before the recordation of the declaration
• privileges, mortgages, and encumbrances on the unit recorded before the recordation of the assessments lien
• property taxes, and
• governmental assessments in which the unit is specifically described. (La. Rev. Stat. § 9:1123.115(C) (2025).)

How to Avoid or Stop a COA or an HOA Foreclosure in Louisiana

You might have several options for preventing a COA or an HOA foreclosure in Louisiana, such as:

• paying off the delinquency or fixing the violation
• negotiating a reduced payoff or payment plan
• filing for bankruptcy, or
• raising a defense, such as the COA or HOA didn't give proper notice or follow timelines, or the COA or HOA added unreasonable fees to your account.

How Does a Louisiana HOA Foreclosure Affect My Credit?

A COA or an HOA foreclosure will show up on your credit reports, similar to a mortgage foreclosure. But the COA or HOA might or might not report missed payments to the credit bureau

Talk to a Lawyer If You're Facing a COA or HOA Lien Foreclosure

If you're facing an HOA or COA foreclosure in Louisiana, consider consulting with a foreclosure attorney to discuss all legal options available in your circumstances.