As you know, Community Association Institute’s Colorado Legislative Action Committee (“CLAC”) has been working on Senate Bill 11-122 (“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.
CLAC has been working on another bill that could significantly blunt the negative impact of SB 122 on associations. While progress has been made, stakeholders have not yet approved a final rework of the legislation. As a result, we must take immediate action to defeat SB 122.
SB 122 is scheduled to be heard before the Senate Judiciary Committee on Tuesday morning. Please take a moment right now to call and email members of the Senate Judiciary Committee to ask them to vote NO on SB 122. Please make these contacts on Monday.
Tell the Senators:
●SB 122 unfairly singles out HOAs in Colorado.
●HOAs are experiencing financial difficulties through loss of assessment income – resulting from tough economic times and the continuing foreclosure crisis.
●One way associations have been able to recover months of assessment delinquencies is by assigning the association’s junior lien rights to investors. Investors pay an association the full amount of a homeowner’s delinquency for an assignment of the association’s junior lien. This assignment enables the investor to redeem the property which is being foreclosed upon by the lender.
●SB 122 would destroy any incentive for investors to purchase junior lien rights from associations. As a result, associations will suffer economic losses which will have to be covered by other paying homeowners through assessment increases or special assessments.
Please attach to your emails to Senators: SB 122 – A Gamble HOAs Can’t Afford Colorado to Take.
Names and Contact Information for the Senate Judiciary Committee:
CHAIR: Senator Morgan Carroll: 303-866-4879; email@example.com
VICE-CHAIR: Senator Lucia Guzman: 303-866-4862; firstname.lastname@example.org
Senator Angela Giron: 303-866-4878; email@example.com
Senator Steve King: 303-866-3077; firstname.lastname@example.org
Senator Kevin Lundberg: 303-866-4853; email@example.com
Senator Linda Newell: 303-866-4846; Linda.firstname.lastname@example.org
Senator Jeanne Nicholson: 303-866-4873; email@example.com
Senator Ellen Roberts: 303-866-4884; firstname.lastname@example.org
Senator Mark Scheffel: 303-866-4869; email@example.com