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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1251
Introduced by Dover, 19.
Read first time January 21, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to liens; to amend sections 52-2001 and1
76-874, Reissue Revised Statutes of Nebraska; to change provisions2
relating to liens of homeowners' associations and unit owners3
associations; and to repeal the original sections.4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 52-2001, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
52-2001 (1) A homeowners' association has a lien on a member's real3
estate for any assessment levied against real estate from the time the4
assessment becomes due and a notice containing the dollar amount of such5
lien is recorded in the office where mortgages or deeds of trust are6
recorded. The homeowners' association's lien may be foreclosed in like7
manner as a mortgage on real estate but the homeowners' association shall8
give reasonable notice of its action to all lienholders of real estate9
whose interest would be affected. Unless the homeowners' association10
declaration or agreement otherwise provides, fees, expenses, charges,11
attorney's fees, court costs, late charges, and interest charged are12
enforceable as assessments under this section. If an assessment is13
payable in installments, the full amount of the assessment may be a lien14
from the time the first installment thereof becomes due.15
(2) A lien under this section is prior to all other liens and16
encumbrances on real estate except (a) liens and encumbrances recorded17
before the recordation of the declaration or agreement, (b) a first18
mortgage or deed of trust on real estate recorded before the notice19
required under subsection (1) of this section has been recorded for a20
delinquent assessment for which enforcement is sought, and (c) liens for21
real estate taxes and other governmental assessments or charges against22
real estate. The lien under this section is not subject to the homestead23
exemption pursuant to section 40-101. 24
(3) Unless the declaration or agreement otherwise provides, if two25
or more homeowners' associations have liens for assessments created at26
any time on the same real estate, those liens have equal priority.27
(4) A lien for unpaid assessments is extinguished unless proceedings28
to enforce the lien are instituted within five three years after the full29
amount of the assessments becomes due. Notwithstanding the foregoing, a30
lien for unpaid assessments may be continued for up to five years by the31
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homeowners' association filing a continuation statement in the office1
where mortgages or deeds of trust are recorded. To be effective, such2
continuation statement must be sent by the homeowners' association to the3
member's real estate prior to the original extinguishment date.4
(5) This section does not prohibit actions to recover sums for which5
subsection (1) of this section creates a lien or prohibit a homeowners'6
association from taking a deed in lieu of foreclosure.7
(6) A judgment or decree in any action brought under this section8
must include costs , to include late fees and interest, and reasonable9
attorney's fees for the prevailing party. When awarding such costs and10
attorney's fees, the court shall only consider the time and labor11
required and the costs and attorney's fees actually incurred by the12
prevailing party. The prevailing party's costs and attorney's fees are13
recoverable upon a voluntary payment to the prevailing party after the14
action is filed but before judgment, or upon a judgment in favor of the15
prevailing party. 16
(7) The homeowners' association, upon written request, shall furnish17
to a homeowners' association member a recordable statement setting forth18
the amount of unpaid assessments against his or her real estate. The19
statement must be furnished within ten business days after receipt of the20
request and is binding on the homeowners' association, the governing21
board, and every homeowners' association member. 22
(8) The homeowners' association declaration, agreements, bylaws,23
rules, or regulations may not provide that a lien on a member's real24
estate for any assessment levied against real estate relates back to the25
date of filing of the declaration or that such lien takes priority over26
any mortgage or deed of trust on real estate recorded subsequent to the27
filing of the declaration and prior to the recording by the association28
of the notice required under subsection (1) of this section.29
(9) In the event of a conflict between the provisions of the30
declaration and the bylaws, rules, or regulations or any other agreement31
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of the homeowners' association, the declaration prevails except to the1
extent the declaration is inconsistent with this section.2
(10)(a) The homeowners' association may require a person who3
purchases restricted real estate on or after September 6, 2013, to make4
payments into an escrow account established by the homeowners'5
association until the balance in the escrow account for that restricted6
real estate is in an amount not to exceed six months of assessments.7
(b) All payments made under this subsection and received on or after8
September 6, 2013, shall be held in an interest-bearing checking account9
in a bank, savings bank, building and loan association, or savings and10
loan association in this state under terms that place these payments11
beyond the claim of creditors of the homeowners' association. Upon12
request by an owner of restricted real estate, the homeowners'13
association shall disclose the name of the financial institution and the14
account number where the payments made under this subsection are being15
held. The homeowners' association may maintain a single escrow account to16
hold payments made under this subsection from all of the owners of17
restricted real estate. If a single escrow account is maintained, the18
homeowners' association shall maintain separate accounting records for19
each owner of restricted real estate. 20
(c) The payments made under this subsection may be used by the21
homeowners' association to satisfy any assessments attributable to an22
owner of restricted real estate for which assessment payments are23
delinquent. To the extent that the escrow deposit or any part thereof is24
applied to offset any unpaid assessments of an owner of restricted real25
estate, the homeowners' association may require such owner to replenish26
the escrow deposit. 27
(d) The homeowners' association shall return the payments made under28
this subsection, together with any interest earned on such payments, to29
the owner of restricted real estate when the owner sells the restricted30
real estate and has fully paid all assessments. 31
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(e) Nothing in this subsection shall prohibit the homeowners'1
association from establishing escrow deposit requirements in excess of2
the amounts authorized in this subsection pursuant to provisions in the3
homeowners' association's declaration. 4
(11) For purposes of this section: 5
(a) Declaration means any instruments, however denominated, that6
create the homeowners' association and any amendments to those7
instruments; 8
(b)(i) Homeowners' association means an association whose members9
consist of a private group of fee simple owners of residential real10
estate formed for the purpose of imposing and receiving payments, fees,11
or other charges for: 12
(A) The use, rental, operation, or maintenance of common elements13
available to all members and services provided to the member for the14
benefit of the member or his or her real estate; 15
(B) Late payments of assessments and, after notice and opportunity16
to be heard, the levying of fines for violations of homeowners'17
association declarations, agreements, bylaws, or rules and regulations;18
or 19
(C) The preparation and recordation of amendments to declarations,20
agreements, resale statements, or statements for unpaid assessments; and21
(ii) Homeowners' association does not include a co-owners22
association organized under the Condominium Property Act or a unit owners23
association organized under the Nebraska Condominium Act; and24
(c) Real estate means the real estate of a homeowners' association25
member as such real estate is specifically described in the member's26
homeowners' association declaration or agreement. 27
Sec. 2. Section 76-874, Reissue Revised Statutes of Nebraska, is28
amended to read: 29
76-874 (a) The association has a lien on a unit for any assessment30
levied against that unit from the time the assessment becomes due and a31
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notice containing the dollar amount of such lien is recorded in the1
office where mortgages are recorded. The association's lien may be2
foreclosed in like manner as a mortgage on real estate but the3
association shall give reasonable notice of its action to all lienholders4
of the unit whose interest would be affected. Unless the declaration5
otherwise provides, fees, charges, late charges, and interest charged6
pursuant to subdivisions (a)(10), (a)(11), and (a)(12) of section 76-8607
and expenses, attorney's fees, and court costs are enforceable as8
assessments under this section. If an assessment is payable in9
installments, the full amount of the assessment may be a lien from the10
time the first installment thereof becomes due. 11
(b) A lien under this section is prior to all other liens and12
encumbrances on a unit except (i) liens and encumbrances recorded before13
the recordation of the declaration, (ii) a first mortgage or deed of14
trust on the unit recorded before the notice required under subsection15
(a) of this section has been recorded for a delinquent assessment for16
which enforcement is sought, and (iii) liens for real estate taxes and17
other governmental assessments or charges against the unit. The lien18
under this section is not subject to the homestead exemption pursuant to19
section 40-101. 20
(c) Unless the declaration otherwise provides, if two or more21
associations have liens for assessments created at any time on the same22
real estate, those liens have equal priority. 23
(d) A lien for unpaid assessments is extinguished unless proceedings24
to enforce the lien are instituted within five three years after the full25
amount of the assessments becomes due. Notwithstanding the foregoing, a26
lien for unpaid assessments may be continued for up to five years by the27
association filing a continuation statement in the office where mortgages28
are recorded. To be effective, such continuation statement must be sent29
by the association to the applicable unit prior to the original30
extinguishment date. 31
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(e) This section does not prohibit actions to recover sums for which1
subsection (a) of this section creates a lien or prohibit an association2
from taking a deed in lieu of foreclosure. 3
(f) A judgment or decree in any action brought under this section4
must include costs , to include late fees and interest, and reasonable5
attorney's fees for the prevailing party. When awarding such costs and6
attorney's fees, the court shall only consider the time and labor7
required and the costs and attorney's fees actually incurred by the8
prevailing party. The prevailing party's costs and attorney's fees are9
recoverable upon a voluntary payment to the prevailing party after the10
action is filed but before judgment, or upon a judgment in favor of the11
prevailing party. 12
(g) The association upon written request shall furnish to a unit13
owner a recordable statement setting forth the amount of unpaid14
assessments against his or her unit. The statement must be furnished15
within ten business days after receipt of the request and is binding on16
the association, the executive board, and every unit owner.17
Sec. 3. Original sections 52-2001 and 76-874, Reissue Revised18
Statutes of Nebraska, are repealed. 19
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