The measure is aimed in part at making good on a promise from the governor and lawmakers to change the state’s HOA laws following a Colorado Sun investigation last year
Colorado homeowners associations will have a tougher time foreclosing on their residents for unpaid debt starting in August.
House Bill 1337, signed by Gov. Jared Polis in early June, creates new hurdles for HOAs before they can file for foreclosure and limits how much associations can charge in attorney fees when they are trying to collect what they’re owed. It also gives homeowners and renters a second chance at keeping their properties in the event a house is foreclosed on by an HOA and sold at auction.
“(This bill) really gets at the pieces of this process and how it works that we were really seeing lead to the most devastating foreclosures,” said Melissa Mejia, director of state and local policy at the Community Economic Defense Project, which was one of the main groups behind the bill.
The measure, passed by the legislature in April, is aimed in part at making good on a promise from the governor and lawmakers to change the state’s HOA laws following a Colorado Sun investigation published last year. The investigation revealed Colorado HOAs had filed roughly 3,000 foreclosure cases between 2018 and June 2023, more than 250 of which — or roughly 8% — resulted in properties being auctioned off, most for well below market value.
coloradosun.com/2024/07/08/colorado-hoa-foreclosure-new-laws/