Bill > HB1043

This bill aims to enhance protections for homeowners in their interactions with Homeowners' Associations (HOAs) by introducing several key provisions related to foreclosure proceedings and assessment collection. The bill requires HOAs to provide more comprehensive and transparent communication with unit owners facing potential foreclosure, including mandatory notices about credit counseling, mediation rights, and detailed information about the potential consequences of foreclosure. Specifically, associations must now give at least 30 days' notice before initiating foreclosure, contact unit owners through multiple communication channels (phone, text, email, mail), and provide clear information about the potential loss of home equity. The bill also establishes a new legal mechanism allowing unit owners to file a motion to stay a foreclosure sale and list their unit for sale at fair market value, giving them an opportunity to avoid losing their property. Additionally, the bill mandates that HOAs strictly comply with all lien and foreclosure provisions and requires associations to report detailed annual information about delinquencies, judgments, payment plans, and foreclosure actions to the Division of Real Estate. These changes are designed to provide more protection and options for homeowners facing potential foreclosure while promoting transparency in HOA collection practices.

Housing and Urban Affairs

https://leg.colorado.gov/bills/hb25-1043