The 2025 Colorado Legislative Session is in full swing, folks! And, in what has become the norm, there are a number of pending legislative bills that affect community associations. We are tracking some of the key bills that will affect associations through the Altitude Legislative Tracker. However, here is a brief summary of the bills that we believe will impact associations the most if the bills are signed into law.
- HB25-1043 – Owner Equity Protection in Homeowners’ Association Foreclosure Sales – This bill was introduced in, and has passed, the House and is now working its way through the Senate. The bill, if it continues into law, would impact an association’s collection and foreclosure process. Specifically, the bill contains provisions such as requiring a ledger to be sent to the owner within 7 business days of the owner’s request, including an advisement regarding free information relating to assessment collection and association foreclosure and the availability of online information from the Federal Department of Housing and Urban Development concerning credit counseling prior to foreclosure. Additionally, the bill would require the association to report information regarding delinquencies, judgments, payment plans and foreclosures with its annual DORA registration. Additionally, the bill would require an association to periodically request and maintain telephone and email information for the owner. In the event that an owner has failed to provide such information, the bill allows an association to use regular mail as an additional contact option for delinquent owners. And finally, among other requirements, the association would be required to provide additional notice regarding foreclosure to other lienholders as well as advising the owner that the owner may file a motion to stay the sale of the property at the foreclosure auction to allow the owner time to list the property for sale.
- HB25-1123 – Homeowners’ Association Alternative Dispute Resolution – This bill was introduced and is currently still in the House. The bill would require an owner and the association to undergo internal dispute resolution, including mediation if necessary, prior to commencing a legal proceeding. While CCIOA currently requires an association to have an Alternative Dispute Resolution Policy in place, this bill would specify a revision to the ADR policy to state a more formal dispute resolution process that would need to be followed by the parties prior to further legal action.
- HB25-1272 – Construction Defects and Middle Market Housing – A construction defect bill affecting “Middle Market Housing” defined in the bill to mean multifamily attached housing of two or more units where each unit is for sale at or below maximum loan limits for that county and has had a third-party inspection that meets specific requirements set forth in the bill. Claimants must file certificates of review for a construction defect action wherein such certificates must also meet specific requirements and the bill requires claims to have resulted in actual real or personal property damage, actual bodily injury or wrongful death, etc. HB25-1272 has been referred to the Committee of the Whole.
- SB25-131 – Reducing the Cost of Housing – This is a construction defect bill that would restrict all construction defect claims unless the construction defect caused actual damage, actual loss, bodily injury or wrongful death, or an imminent risk of same. (The bill also contains a number of revisions regarding landlord/tenant actions, if you’re interested). The bill remains in the Senate at this time.
- HB25–1182 – Risk Model Use in Property Insurance Policies – A bill that would require certain insurers to share information with the state and public regarding its scoring methods for insurance, including actuarial justification for all rating factors and that would require an insurer to provide discounts to policyholders who can demonstrate property-specific mitigation actions have been undertaken to reduce the risk of loss.
- HB25-1302 – Increase Access Homeowner’s Insurance Enterprises – Among other things, this bill would create a “reinsurance” program and a process by which to fund a grant program to insured homeowners to defray certain costs.
- HB25-1117 – Vehicle Immobilization Company Regulation – A bill that imposes restrictions and regulations on booting-type actions (“boots” are types of immobilization devices placed on vehicles) that are similar to our current towing laws. For example, the property owner must provide documented permission to the company prior to booting, the vehicle owner or operator must have received twenty-four hours written notice prior to booting, etc.
If you have questions or concerns, please feel free to contact an Altitude attorney at 303.432.9999 or [email protected].