Ten years have passed since the Massachusetts Supreme Judicial Court (SJC) issued its landmark decision in Drummer Boy Homes Associations, Inc. v. Britton, 474 Mass. 17 (2016), fundamentally shaping condominium lien enforcement under Chapter 183A. Looking back, the decision stands as a reminder that the reactionary predictions of market disruption are often eclipsed by practical experience. Rather than destabilizing the condominium market, as predicted by the national banking industry, the reality is that the Drummer Boy decision reinforced the financial stability of condominium associations by confirming the powerful lien enforcement tools provided by the Legislature in Chapter 183A.

Ten years later, Drummer Boy stands not as a cautionary tale, but as a success story.

At issue in Drummer Boy was whether a condominium association could enforce successive six-month “super priority” liens against a unit, where the unit owner continued to fail to pay common expense assessments. The SJC held that Chapter 183A permits condominium associations to obtain multiple contemporaneous priority liens, otherwise known as “rolling liens.” In doing so, the SJC gave practical effect to the Legislature’s intention under Chapter 183A, ensuring that condominium associations are not left without an effective remedy when unit owners repeatedly fail to satisfy their statutory obligations.

Following the SJC’s decision, the mortgage lending industry’s reaction was immediate and, in hindsight, overly dramatic. Banks, federal housing agencies, mortgage servicers, and industry commentators warned that the decision would “destabilize the real estate finance system in Massachusetts.” They predicted that lenders would retreat from the condominium market, financing would be next-to-impossible to obtain, and the enhanced rights afforded to condominium associations would severely disrupt foreclosure proceedings.

These predictions never materialized, and it is safe to say that the mortgage lending industry’s reaction was short-sighted and flawed.

Notably, the local banking industry recognized the value of the rolling lien in real time, not in hindsight. Several Massachusetts banks filed amicus briefs supporting the condominium association’s positions, recognizing that financially healthy condominium associations ultimately protect the value of a lender’s collateral. Their position reflected the much more sophisticated understanding that the collection of common expenses strengthens condominium communities and benefits all stakeholders, including mortgage lenders.

A decade later, the condominium market has confirmed this view.

First, the lien enforcement process affirmed in Drummer Boy protects the interests of condominium associations by ensuring they have an effective mechanism to recover virtually all unpaid common expense assessments. The collections of such fees provide the resources necessary to maintain and repair common areas, preserve property values, and protect the long-term financial health of the associations. Absent the ability to perfect multiple priority lien periods-certain national lenders went so far as to claim a condominium association could only have one priority lien over the course of a thirty year mortgage-condominium associations in Massachusetts would have been thrust back into the same circumstances that existed in the late 1980s and early1990s when the inability to collect unpaid common expenses assessments created a vortex that drove down values, undermined stability, and made condominium ownership an unappealing risk.

Second, contrary to the predictions of market instability, condominiums in Massachusetts continue to enjoy a robust lending market. Mortgage financing remains readily available for condominium purchasers, and lenders continue to compete aggressively for condominium loan business. The feared disruption to the lending market simply never materialized.

Finally, Chapter 183A’s lien enforcement framework, particularly (and most importantly) the rolling lien, has made condominium associations among the strongest borrowers in the Commonwealth. That statutory tool to collect common expenses and maintain consistent reserves make condominiums one of the lowest, if not the lowest lending risks in the state. As a result, banks actively compete to finance condominium associations, recognizing the strength and reliability of these borrowers.

Ten years later, Drummer Boy stands not as a cautionary tale, but as a success story. The decision preserved the Legislature’s balanced approach to condominium governance, strengthened the financial stability of condominium communities, and demonstrated that protecting associations ultimately protects homeowners, lenders, and the condominium market as a whole.

The attorneys at Moriarty Bielan & Gamache LLC, including Tom Moriarty, who served as lead appellate counsel for the condominium association, who successfully secured that landmark victory for the condominium industry, never had a doubt that community associations in the Commonwealth would reap benefits from the decision and they appreciate in their daily practice the value and utility of that decision.

Should your condominium or your condominium client be in the unfortunate position to have to pursue a lien enforcement to recover unpaid common expense assessments MBG is uniquely positioned to help you take full advantage of the lien enforcement mechanisms provided in Chapter 183A. MBG continues to provide clients with the experience, insight, and advocacy necessary to navigate lien enforcement matters with confidence.