House Bill 1197, sponsored by Representative Deb Gardner, was introduced today in the Colorado House of Representatives.  

The bill, as originally introduced, addresses: (1) calculation of an association’s superlien; (2) timeframe for a lender to pay an association’s superlien; (3) penalties that may be assessed for failure to pay the superlien; (4) affect of payment of the superlien on subsequent foreclosures; (5) the ability of associations to foreclose on a superlien and junior lien in the same action; (6) the affect on a senior lien by an association’s foreclosure; and (7) the requirement of an association to provide ledgers evidencing delinquencies.Continue Reading HB 1197 Introduced Today Addressing HOA’s Superlien

Community Association Institute’s Colorado Legislative Action Committee (“CLAC”) has been working on Senate Bill 122 (“SB 122”). If passed, SB 122 would destroy the ability of homeowner associations (“HOAs”) to assign junior lien rights to investors. This would have a detrimental impact on the finances of many HOAs in Colorado. SB 122 – A Gamble HOAs Can’t Afford Colorado to Take more fully explains the issue. Continue Reading SB 122 – CALL TO ACTION

The Colorado Division of Real Estate (“Division”) has published an HOA Information Office Legislative Summary and Resource Handout (“Summary”). In that Summary, the Division has noted that pre-CCIOA communities (associations created before July 1, 1992) that have not elected to be treated as CCIOA communities – are not required to register. However, the Division is urging those communities to voluntarily comply with the HOA registration requirements. Continue Reading Division of Real Estate: Pre-CCIOA Communities Exempt from HOA Registration

The Federal Housing Finance Agency (“FHFA”) has issued a News Release announcing the creation of a Proposed Rule that will be published in the Federal Register addressing private transfer fee covenants. The Proposed Rule would limit Fannie Mae, Freddie Mac and the Federal Loan Banks from “dealing in mortgages on properties encumbered by certain types of private transfer fee covenants and in certain related securities.”Continue Reading FHFA Excludes Community Associations from Proposed Rule on Transfer Fees

As we fully described in our January 21, 2011 blog entry, House Bill 1110 amends the Colorado Revised Nonprofit Corporation Act to apply certain governance provisions of CCIOA to “Residential Nonprofit Corporations.” While it was clear that the intent of the legislation was never to include homeowner associations within the definition of Residential Nonprofit Corporation, the broad definition in the original version of the bill did capture associations.Continue Reading HB 1110 Amended to Exclude HOAs

Yesterday we announced that for the second year in a row, Senator Lundberg had introduced a bill (SB 122) which would destroy any incentive for investors to purchase the junior lien rights of homeowner associations. In addition to the adverse impact this bill would ultimately have on paying members in associations, SB 122 singles out associations for inequitable procedural treatment.Continue Reading Junior Lien Bill – Inequitable Procedural Treatment for HOAs

On January 31, 2011, Senate Bill 11-122 (“SB 122”) was introduced in the Colorado Senate. Sponsored by Senator Lundberg for the second year in a row, the intent of the legislation is to obtain the highest bid possible on property at a public trustee foreclosure sale. The philosophy behind the bill is to get the price bid up high enough at the sale to have excess proceeds available to be distributed to the individual who loses his or her home in foreclosure. All good intentions aside, SB 122 attacks the lien rights of homeowner associations in Colorado.  Continue Reading Junior Lien Bill Introduced in the Colorado Senate – Round II for Community Associations