HB 1134, which is being sponsored in the Senate by Senate Majority Leader Morgan Carroll, was approved by the Committee on a 3 to 2 vote and was sent to the full Senate with a favorable recommendation. The bill requires the Colorado Division of Real Estate to study the need for regulating HOAs in Colorado. The bill also requires pre-CCIOA communities to register with the Division and simplifies the registration process for all HOAs. HB 1134 is expected to be approved by the full Senate on a party line vote and to ultimately be signed into law by Governor Hickenlooper.
HB 1276, which is being sponsored in the Senate by Senator David Balmer and Senator Majority Leader Carroll, was approved by the Committee on a 5 to 0 vote and was also sent to the full Senate with a favorable recommendation. Prior to an HOA sending a delinquent account for action to legal counsel, a collection agency or to sell the debt to a 3rd party, the Association must first provide the delinquent owner with a one-time opportunity to enter into a payment plan for a minimum of six months. If the owner defaults on the payment plan or fails to make their current month assessment payment, the association is permitted to proceed with collections. In addition, the bill prohibits HOAs and parties who purchase the lien of an association to proceed to foreclosure unless the lien secures what would equal at least six months of past due assessments. HB 1276 is also expected to be approved by the full Senate with bipartisan support and signed into law by the Governor.
Keep your eye on this blog for timely and important updates on these bills and House Bill 1277 – the manager and management company licensure bill which was just read across the desk (meaning introduced) in the Senate this morning.