AND THE HOA BILLS KEEP COMING…

Two more bills have been introduced aimed at addressing owner concerns with Common Interest Communities.

• HB 22-1137, self-titled as a bill “Concerning practices of unit owners’ associations, and in connection therewith, authorizing the enforcement of certain matters regarding unit owners’ associations in small claims court and limiting the conduct of unit owners’ associations in collecting unpaid assessments, fees, and fines.”  This bill, sponsored by Representative Naquita Ricks(D) (Arapahoe County) attempts to allow original jurisdiction in small claims court for violations as well as capping fees and costs for delinquent assessments.  As drafted, HB 22-1137 provides as follows:
  
  
  • Grants concurrent jurisdiction to a small claims court for the bringing of enforcement actions and collection cases in small claims court;
  • Limits the maximum amount of interest for late payments to 8% per annum (currently set at 21%);
  • Requires the board to vote for each matter turned over to an attorney or debt recovery company;
  • Limits the amount of recoverable collection costs to three times the original debt amount;
  • Limits late charges to the lesser of 8% per diem, $50.00 per day, or a total $500.00;
  • Requires the Association provide foreclosure counseling information to a delinquent owner;
  • Requires the Association to attempt contacting the owner using at least two different methods including, mail, certified mail, email, telephonically or in person visits;
  • Requires the associations that have reserve studies, provide reconciliation of all reserve accounts to the owners which must be made available on the Association’s web site.

As of now, this bill has no listed co-sponsors in either chamber and is not scheduled for a hearing.

• HB 22-1139 is a limited bill which concerns “Prohibiting a Unit Owners Association of a Common Interest Community from Regulating the Use of A Public-Right-of Way).”  Sponsored by Rep. Geitner (R)(El Paso) the bill will effectively answer the question of: “Can an association regulate parking on a public street.”  The bill also deletes all protections for first responder vehicles parked within a community.  So, while an association will now be able to regulate parking in the community, it may not regulate anything outside of the community.   

Please do not hesitate to contact an Altitude attorney at 303-432-9999 or [email protected] and stay tuned to our Legislative Tracker for more updates on 2022 Legislation.