HB 11-1197, concerning association superliens, is moving ahead, and is scheduled for a hearing tomorrow before the House Economic and Business Development Committee. As originally introduced, this bill would make a number of changes to the superlien laws. 

Why the Superlien is important
The Superlien Bill would gut one of an association’s most powerful tools to collect past due assessments and shift the burden of financing associations, from banks or investors who purchase foreclosed homes, onto non-foreclosed neighbors. The bill essentially eliminates the superlien as a collection tool, which could financially destabilize associations in Colorado.

 The superlien protects associations from losing all rights to collect past due assessments in a foreclosure process, by giving associations a lien equal to six months of past due assessments. This lien has priority over any other liens against a property. That means that anyone acquiring a property in foreclosure must pay at least six months assessments (the superlien).

Without the superlien, an association’s right to collect past due assessments would be virtually non-existent after a foreclosure. The original owner is likely judgment-proof or uncollectible from, and enforcement of the superlien would become practically impossible.

What happens next
Altitude Community Law opposes this bill, and recommends that you contact the members of the House Economic and Business Development Committee.

Larry Liston, Chair

Spencer Swalm, Vice-Chair

David Balmer

Deb Gardner

Chris Holbert

Joe Miklosi

Kevin Priola

John Soper

Keith Swerdfeger

Libby Szabo

Max Tyler

Angela Williams

Roger Wilson

Please let them know you oppose HB 11-1197 because it would financially destabilize your association.

Negotiations to defeat or amend this bill are currently underway. We will keep you posted about its status.

Amelia J. Adair
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