House Bill 1276, the "HOA Debt Collection" bill, just passed through its second reading in the House.

The bill has been revised to address association lien assignment.  Previously, there was a potential loophole by which an association could assign a lien to a third party, who could then foreclose sooner than the association.  Now, any assignee of an association lien cannot foreclose sooner than the association, and the assignee must also honor the six-month payment plan associations must offer to owners.

This bill must pass through one more reading in the House before it is sent to the Senate, where we expect it to pass.

Subscribe to our blog for up-to-the-minute updates on important legislation that impacts Colorado community associations.