You don't say what sort of property ownership arrangements exist, to which this HOA covenant may apply.

If the housing is cooperative or condominium then the HOA gains such liens by authority of express statute.
See Code sections 499A.22 and 499B.17.

If the housing is owner-occupied lot in a subdivision then I think the question becomes something else:
May a restrictive covenant create or authorize a contractual lien, either expressly or by implication?

Iowa court decisions offer no firm answer to this question one way or another, so far as I can find.
But other States say Yes.

A most comprehensive evaluation of your claim is provided by Colorado's Supreme Court. 

*Evergreen Highlands Ass'n v. West, 73 P.3d 1 (Colo. 2003), cert den. West v. Evergreen Highlands Ass'n, 504 U.S. 1106 (2004)
Majority of homeowners subject to existing covenants may vote to amend said covenants to add provisions imposing maintenance dues/assessments, and liens for delinquent assessments; even in absence of an express covenant imposing mandatory assessments, HOA holds implied power to collect assessments from its members, and may sue for breach of implied contract.
Colorado Supreme Court cites the following cases in support of its conclusion:
"See, e.g., Spinnler Point Colony Ass'n, Inc. v. Nash, 689 A.2d 1026, 1028-29 (Pa.Commw.Ct.1997) (holding that where ownership in a residential community allows owners to utilize common areas, "there is an implied agreement to accept the proportionate costs for maintaining and repairing these facilities."); Meadow Run & Mountain Lake Park Ass'n v. Berkel, 409 Pa.Super. 637, 598 A.2d 1024, 1026 (1991) (same); Seaview Ass'n of Fire Island, N.Y., Inc. v. Williams, 69 N.Y.2d 987, 517 N.Y.S.2d 709, 510 N.E.2d 793, 794 (1987) (holding that when lot purchaser has knowledge that homeowners association provides facilities and services to community residents, purchase creates an implied-in-fact contract to pay a proportionate share of those facilities and services); Perry v. Bridgetown Cmty. Ass'n, Inc., 486 So. 2d 1230, 1234 (Miss.1986) ("A landowner who willfully purchases property subject to control of the association and *8 derives benefits from membership in the association implies his consent to be charged assessments and dues common to all other members."). But see Popponesset Beach Ass'n, Inc. v. Marchillo, 39 Mass.App.Ct. 586, 658 N.E.2d 983, 987-88 (1996) (holding that where lot owner had no notice in his chain of title of assessments and had not used the common areas, there existed no implied-in-fact contract to pay past and future assessments).[7]
"Reflecting this considerable body of law, the newest version of the Restatement of Property (Servitudes) provides that "a common-interest community has the power to raise the funds reasonably necessary to carry out its functions by levying assessments against the individually owned property in the community...." Restatement (Third) of Property: Servitudes § 6.5(1)(a) (2000). In addition, as explained in a comment to that section, the power to levy assessments "will be implied if not expressly granted by the declaration or by statute." Id. at § 6.5 cmt. b; see also Wayne S. Hyatt, Condominium and Homeowner Association Practice: Community Association Law 36 (1981) ("The assessment is not equivalent to membership dues or some other discretionary charge.... As long as legitimate expenses are incurred, the individual member must bear his or her share.").
"We find the Restatement and case law from other states persuasive in analyzing the issue before us today.
...
"At the time Respondent purchased his lot in 1986, the Evergreen Highlands' declarations made clear that a homeowners association existed, it owned and maintained the park area, and it had the power to impose annual membership or use fees on lot owners. These declarations were sufficient to create a common interest community by implication. As explained by the Restatement:
     An implied obligation may ... be found where the declaration expressly creates an association for the purpose of managing common property or enforcing use restrictions and design controls, but fails to include a mechanism for providing the funds necessary to carry out its functions. When such an implied obligation is established, the lots are a common-interest community within the meaning of this Chapter. 
"Restatement (Third) of Property: Servitudes § 6.2 cmt. a (2000); see also id. at illus. 2 (citing an example virtually identical to that of Evergreen Highlands and finding it a common interest community by judicial decree).
"We accordingly adopt the position taken by the Restatement and many other states, and hold that the declarations for Evergreen Highlands were sufficient to create a common interest community by implication. The Association therefore has the implicit power to levy assessments against lot owners for the purpose of maintaining the common area of the subdivision. Respondent, as a lot owner, has an implied duty to pay his proportionate share of the cost of maintaining and operating the common area. ... "

Other courts hold similarly.

*Zito v. Gerken, 587 N.E.2d 1048, 225 Ill. App. 3d 79, 167 Ill. Dec. 433 (1992)
Existing restrictive covenants may be properly amended to mandate HOA membership, dues assessments, and means to collect the assessments if delinquent, including liens.  (Same principle as Evergreen.)

*Zerquera v. Centennial Homeowners' Ass'n, Inc., 752 So.2d 694 (Fla. App. 2000)
Association documents declare assessments against a homeowner = "continuing lien" upon property; lien foreclosure petition granted.

*Inwood North Homeowners’ Association, Inc. v. Harris, 736 S.W.2d 632 (Tex. 1987)
When homeowner fails to pay his portion of the neighborhood expenses, the HOA, representing the remaining homeowners, may use the covenants established in covenants & restrictions to enforce payment.

*Haas v. Ashford Hollow Community Improvement Ass'n, Inc., 209 S.W.3d 875 (Tex. Civ. App. 2006)
Association alleged that the restrictive covenants entitled it to place and foreclose a lien for outstanding assessments; lien foreclosure granted.

*Barker v. Lake Camelot Property Owners' Ass'n, Inc., 312 Wis.2d 482, 751 N.W.2d 903 (2008)
Restrictive covenants providing for liens and other means to collect delinquent dues may expire by their terms, but provide no grounds for slander of title action; apparently, but for the Association's failure to properly renew its lien and claims would have been respected by the court.


Hoping this helps.


David Hanson
Hofmeyer & Hanson PC
Fayette, Iowa


----- Original Message -----
From: "Scott Hall" <realestate@iabar.org>
To: realestate@iabar.org
Sent: Wednesday, October 25, 2017 11:01:06 AM
Subject: [ISBA RealEstate]  HOA Dues as Liens on Real Property

I am asking for the collective wisdom of our 900+ members. Do unpaid HOA
dues create liens on real property that are clouds on title at closing?
Assume a declaration of covenants has been filed, and has not lapsed,
stating that the monthly dues, with interest, costs, and other charges,
shall be a charge on the land and shall be a continuing lien upon the
property against which each assessment is made.

I see some areas of the state, like central Iowa, more apt to object to
unpaid dues or assessments in the attorney examination of title, while I
see the objection less in other parts of the state.

Would love to hear your thoughts on the matter. Thank you.

-- 
Scott A. Hall
Carney Appleby Law

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