As you may have heard by reading our blog, on May 28, 2013 the HOA Debt Collection bill (HB 1276) was signed into law by Governor Hickenlooper. Although the requirements of the Bill do not go into effect until January 1, 2014, it is not too soon to commence preparing revisions to your Association’s Collection Policy to ensure timely compliance.
Effective January 1, 2014, an Association must have a Collection Policy which, at a minimum, includes the following information:
(1) The date on which assessments must be paid to the association and when an assessment is considered past due;
(2) Any late fees and interest the association is entitled to charge on a delinquent account;
(3) Any returned-check charges the association is entitled to charge;
(4) The circumstances under which a delinquent owner is entitled to enter into a payment plan and the minimum terms of the payment plan;
(5) Before the association turns over a delinquent account to an attorney or collections agency, the association must send the delinquent owner a written notice specifying:
(a) The total amount of the arrearage, with an accounting of how the total arrearage was determined;
(b) Whether the opportunity to enter into a payment plan exists and instructions for contacting the association to enter into the payment plan;
(c) The name and contact information for the individual the owner may contact to request a copy of the owner’s ledger to verify the amount of the debt; and
(d) That action is required to cure the delinquency and failure to do so within 30 days may result in the account being turned over to a collection agency, a lawsuit being filed against the owner, the filing and foreclosure of a lien against the owner’s property and other remedies available under Colorado law. Continue Reading Time to Start Revising Your Collection Policies!