On Tuesday, the House Business, Labor, Economic and Workforce Development Committee approved an overhauled version of HB 1134 and the bill was just taken up on the House floor and passed on second reading.   

As noted in my January 21^st blog entry, the bill as originally introduced broadly expanded the powers of the HOA Information Officer and HOA Information and Resource Center which are both housed within the Colorado Division of Real Estate. Instead of proceeding with this broad expansion of power, the bill was overhauled to study the HOA regulatory models in Nevada, Virginia and Florida. In particular, the study will assess options, costs and the need for the Division of Real Estate to:Continue Reading Overhauled Version of HB 1134 Moving Through the House

Earlier this afternoon, on a 6 to 5 party line vote, the House Business, Labor, Economic & Workforce Development Committee passed an amended version of HB 1277 – the manager and management company licensure bill. 

Here are some of the highlights of the bill as originally introduced:

● Beginning on July 1, 2014, community association managers and management company executives who directly supervise managers will be required to be licensed in Colorado.  As originally drafted, this provision was very confusing. 

● The CMCA credential, AMS designation and PCAM designation are recognized in the bill as the foundation for the license. In addition to holding the CMCA credential or one of the designations, managers will be required to complete a course and pass an examination relating to applicable Colorado law. As originally introduced, the examination provisions were extremely confusing and in need of clarification.   

● Managers will be required to submit to and pass a criminal background check prior to being issued a license. 

● The Division of Real Estate will have jurisdiction to discipline licensed managers and management company executives required to hold a license. Continue Reading Manager Licensure Bill Clears First Hurdle in the House

Late yesterday afternoon, the House Business, Labor, Economic and Workface Development Committee passed an amended version HB 1276.  Highlights of the bill as originally introduced include the following:  

● HOAs are not permitted to refer delinquent accounts to a collection agency or legal counsel for action unless they have adopted and comply with a Collections Policy with specified minimum provisions.

● As part of the Collections Policy, homeowners must be provided with notice of the delinquency and be informed that if the delinquency is not cured within 30 days their account may be turned over to a collection agency or legal counsel for action.

● Prior to a delinquent account being turned over to a collection agency or a law firm for legal action, a homeowner has a one-time opportunity to enter into a 6 month payment plan (association boards may extend the time of this payment plan if they wish) with their association to cure the entire amount of the delinquency. If the homeowner defaults on the payment plan or fails to pay their current month assessments, the association may immediately proceed with other action to collect on the delinquency.

● HOAs may only proceed with foreclosure if the balance of the assessments and charges secured by its lien equals or exceeds six months of common expense assessments based on a periodic budget adopted by the association.

● The board of an HOA must take a formal vote to authorize proceeding with a judicial foreclosure. This duty to take a formal vote cannot be delegated to an attorney, insurer, manager or any other person.Continue Reading HOA Debt Collection Bill Approved by House Business Committee

Given the severe drought conditions which Colorado is experiencing, Denver Water has announced that watering restrictions will go into effect beginning today – April 1st.  For those of you who are on the look out for April Fools jokes, this is not one of them.  Here’s the announcement from Denver Water outling the restrictions.  For more information, check…

The following communication from CAI’s Colorado Legislative Action Committee (CLAC) has been sent to CAI members in Colorado on the introduction of bills addressing manager licensure and HOA debt collections.  In addition to future communications from CLAC, stay tuned to this blog for important updates on these significant bills as they proceed through the legislative process.

Two Significant Bills Introduced Impacting HOAs in Colorado

House Bill 13-1277; Community Association Manager Licensure

Representative Angela Williams (D – Denver), Chair of the House Business, Labor, Economic and Workforce Development Committee, has just introduced House Bill 13-1277 (HB 1277) in the House of Representatives to require the licensure of community association managers and designated executives of management companies in Colorado. Senator Morgan Carroll (D-Aurora), the Senate Majority Leader, is the primary sponsor of the bill in the Senate. This bill will begin in House and is assigned to the Business, Labor, Economic and Workforce Development Committee. 

Through a licensure program, the purpose of HB 1277 is to ensure the competency of community association managers and management company executives who are responsible for the direct supervision of managers. While CAI’s Colorado Legislative Action Committee (CLAC) submitted an application (which included a recommendation for a licensure program) to the Colorado Department of Regulatory Agencies (DORA) last year to determine whether the licensure of community association managers was necessary, HB 1277 was not drafted by CLAC but does include many of our recommendations. 

Here are some of the highlights of the bill as originally introduced:Continue Reading Important Communication from CLAC: Two Significant Bills Introduced Impacting HOAs in Colorado

Late this afternoon, House Bill 13-1276 ("HB 1276") was introduced in the Colorado House of Representatives by Representative Angela Williams (D-Denver) who is the Chair of the House Business, Labor, Economic and Workforce Development Committee ("Labor Committee").  The co-primary sponsors of the bill in the Senate are Senator Morgan Carroll (D-Aurora) and Senator David Balmer (R-Centennial).  The bill will begin in the House and has been assigned to the Labor Committee.

The purpose of the bill is to: (1) de-escalate the scorched earth perception that HOAs immediately resort to foreclosure when small delinquencies are at issue; and (2) to provide a one-time opportunity for homeowners to enter into a payment plan to satisfy their delinquency prior to their account being turned over to a collection agency or attorney for legal action.

Here are a few highlights of the bill as originally introduced: Continue Reading HOA Debt Collection Bill Just Introduced in Colorado

Yesterday afternoon a slightly amended version of SB 183 was approved on a 3 to 2 party line vote by the Senate Local Government Committee ("Committee").  The bill is being sent for consideration by the full Senate where we expect the bill to be passed on second and third readings and then proceed to the House for consideration. 

Based…

Yesterday, Senator Morgan Carroll introduced Senate Bill 13-183 ("SB 183") to amend current law as it relates to HOAs requiring homeowners to install turf grass on any portion of property they own or are responsible for.  The bill is intended to promote the utilization of xeriscaping as a response to the drought conditions we are continuing to experience in Colorado while providing HOAs with the authority to regulate the types of drought tolerant plantings and hardscapes which may be installed by owners. 

As initially introduced, the bill provides as follows: Continue Reading Xeriscape Bill Introduced by Senator Morgan Carroll