Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to pass a bill that limits how homeowners' associations may collect fees and fines.

Highlights:

• Requires homeowners’ associations (HOAs) to contact homeowners regarding fees and delinquencies by mail, text, or email before contacting a collection agency, specifying (Sec. 1):

• The cause of the delinquency;

• The cure process for the delinquency;

• The legal actions the HOA may take against the resident if the delinquency is not rectified;

• Requires a majority vote by the HOA executive board in order to contact a collection agency about a resident’s delinquent account (Sec. 1).

• Prohibits the imposition of all daily fees, except in cases where (Sec. 1):

• A resident has threatened public safety and not rectified the violation after 72 hours; and 

• A resident has violated a part of the charter not related to public safety, and has not rectified the violation after 30 days, although total fines may not exceed $500.

• Requires HOAs to give residents who have violated the charter a  30-day period to cure the violation before taking legal action (Sec. 1).

• Requires HOAs to send itemized lists to residents of all fees owed every month (Sec. 1).

• Specifies provisions of repayment programs that HOAs can offer (Sec. 1).

• Prohibits HOAs from charging more than 8% interest on unpaid fines (Sec. 1).

• Authorizes HOAs to recover unpaid fines in small claims court if less than $7,500 (Sec. 1).

• Prohibits HOAs from pursuing legal action unless a resident has missed 3 or more membership payments (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that limits how homeowners' associations may collect fees and fines.

Highlights:

• Requires homeowners’ associations (HOAs) to contact homeowners regarding fees and delinquencies by mail, text, or email before contacting a collection agency, specifying (Sec. 1):

• The cause of the delinquency;

• The cure process for the delinquency;

• The legal actions the HOA may take against the resident if the delinquency is not rectified;

• Requires a majority vote by the HOA executive board in order to contact a collection agency about a resident’s delinquent account (Sec. 1).

• Prohibits the imposition of all daily fees, except in cases where (Sec. 1):

• A resident has threatened public safety and not rectified the violation after 72 hours; and 

• A resident has violated a part of the charter not related to public safety, and has not rectified the violation after 30 days, although total fines may not exceed $500.

• Requires HOAs to give residents who have violated the charter a  30-day period to cure the violation before taking legal action (Sec. 1).

• Requires HOAs to send itemized lists to residents of all fees owed every month (Sec. 1).

• Specifies provisions of repayment programs that HOAs can offer (Sec. 1).

• Prohibits HOAs from charging more than 8% interest on unpaid fines (Sec. 1).

• Authorizes HOAs to recover unpaid fines in small claims court if less than $7,500 (Sec. 1).

• Prohibits HOAs from pursuing legal action unless a resident has missed 3 or more membership payments (Sec. 2).

Full Bill Text