February 6, 2014
New Legislation for HOA's


Dear Valued Clients,


We are in receipt of new case law setting forth a requirement that homeowner associations accept and apply partial payments. Attached for your reading is the opinion given by the County of Orange Appellate Division in Huntington Continental Town House Association Inc. v. The JM Trust (please click the link to read the ruling). 


Even though this is a judicial matter from Orange County, it suggests that partial payments be accepted and applied to a homeowners debt during the non judicial foreclosure process.

When partial payments are received from a homeowner who is not on an approved payment plan, SBS will now inform the HOA of the same and look to them to make the decision as to whether or not to accept or return the payment to the homeowner. Please note that if the HOA decides to accept the payment, SBS will still proceed with its collection process.


SBS is continuing to review this matter with legal counsel and industry colleagues and once a better understanding of the opinion is known, we will pass on the information to you.  We also suggest that you have HOA's counsel review this matter as well.


If you have any questions, we are always here to help.




Jennifer Kennick

Senior Vice President

S.B.S. Lien Services

818-991-4600 x 211