CLAC Webinar and 2/2 Meeting of the Colorado HOA Task Force
Dear Kerry,
| The HB-1105 HOA Task Force continues to work into 2024, having most recently met on February 2nd via Zoom, and again on February 23rd. Members of the Colorado Legislative Action Committee (CLAC) continue to observe and participate in the task force’s meetings. The February 2nd agenda focused on foreclosures and communication with homeowners, and the following notes were taken from the February 2nd meeting. You can watch the February 2nd meeting in its entirety on YouTube here. Foreclosures The guest speaker on this webinar was Jason Colunga, Director of Housing Counseling and Education for Housing Resources of Western Colorado. Mr. Colunga reviewed both the foreclosure process for both mortgage company foreclosures and HOA foreclosures with the task force, specifically how: 1. Mortgage company foreclosures – When a mortgage company forecloses on a unit, the only money allowed to an HOA is the six-month super-lien which is six months of assessments, regardless of any collection activity and expense incurred by the HOA that may exceed that amount. Any home equity accrued is not provided back to the owner as the owner will only receive funds back if the home sells at a surplus of what is owed to the mortgage company. Mortgage company foreclosures are non-judicial and do not require a lawsuit prior to foreclosure. 2. HOA Foreclosures – When the HOA forecloses on a home, the owner must be at least six months delinquent in assessments (dues). Per HB22-1137, the HOA is required to post notice on an owner’s door after sending delinquency notices to the owner. The HOA will place a lien on the property to protect its financial interest. The HOA is also required to offer an 18-month payment plan to the delinquent owner. Should the above not work with the owner satisfying the delinquency, the HOA, with Board of Director approval, can begin a judicial foreclosure that requires a lawsuit be filed. The HOA is only attempting to get the monies owed to it that could include past due assessments, late fees, attorney fees, fines, and interest. However, it is the judge of the court who rules on what fees can be included in the amount, not the HOA nor the HOA attorney. The task force discussed what was working well and what needed improvement with the HOA foreclosure process. Many agreed that through the 2023 implementation of HB22-1137, the foreclosure process for HOAs had slowed down and provided more steps to owners to get caught up on the delinquencies. Note of interest – In an August 2023 article, the Colorado Sun stated that 250 homes have been foreclosed on since 2018. According to a SoFi article ranking states by mortgage company foreclosures in December 2023: “Of the Centennial State’s 2,454,873 housing units, 350 went into foreclosure, making for a foreclosure rate of one in every 7,014 homes.” This means HOA foreclosures over 5 years have numbered at 250. Meanwhile, mortgage company foreclosures in December 2023 alone numbered at 350. Communications The task force discussed communication with owners. A few members of the task force appear to not understand the communication processes HOAs provide to owners. With better technology, management companies are able to send emails, provide portals for access, and also mail correspondence. Owners need to take responsibility to read correspondence sent to them to stay abreast of goings on within the HOA. CLAC encourages everyone to tune into the task force meetings, Zoom registration information for the next meeting on March 22nd, once it becomes available, will be found online at: https://engagedora.org/hoa-task-force. |
| Curious about 2024 legislation in Colorado? NEXT CLAC MONTHLY WEBINAR is on February 28th at 12pm: Register Today! CLAC is committed to educating and providing information to the Task Force on the general understanding of CCIOA. It is our hope that prior to subsequent meetings, education opportunities are presented for task force members to have a clearer understanding of how HOAs operate under CCIOA. If you have any specific questions regarding this update, please contact CAI’s Colorado Legislative Action Committee chair Danaly Howe at danalyclac@ccgcolorado.com. Sincerely, Community Associations Institute Colorado Legislative Action Committee (CLAC) government@caionline.org |
Please contact us if you have questions about this summary or if you need representation with regard to association law.