(May 28) – Gov. John Hickenlooper signed two bills today to expand consumer protections for Coloradans living in communities with homeowner associations.
HB13-1276, sponsored by Rep. Angela Williams (D-Denver), directs HOAs to adopt debt collection policies modeled after the Colorado Fair Debt Practices Act. The new policies will help struggling homeowners by requiring HOAs to provide clear information about special assessments, offer payment plans and allow homeowners six months to pay off their arrears before a lien can be filed.
“Homeowners should have a chance to take care of a missed payment before their HOA can place a lien or foreclose on their home,” Rep. Williams said. “This measure strikes a balance between protecting struggling homeowners and allowing HOAs to take action when members don’t pay their fees.”
HB13-1277, also sponsored by Rep. Williams, will require HOA community managers to demonstrate understanding of laws and common practices related to their business. Currently, HOAs and their managers are not subject to any regulation by state agencies. The new law requires managers to obtain a license through the Division of Real Estate by showing working knowledge of standard budgeting practices and laws concerning consumer protection, fair debt collection and nonprofit operations.
“HOA community managers should be knowledgeable about the laws and practices that apply to their profession,” Rep. Williams said. “These standards will help ensure that these managers are making informed decisions while acting on behalf of HOA members.”