By Noah Klug  Posted  June 19, 2013

Two new laws will have a big effect on homeowners associations (HOAs) in Colorado. The term “assessments” refers to payments that owners are required to make to their HOAs for owning a unit. Assessments include regular dues as well as fines, charges for collection and “special assessments” for irregular expenses. When it comes to collecting delinquent assessments, HOAs have two formal collection options (which may be pursued simultaneously): they can pursue a judgment against a owner personally or they can foreclose a “lien” against the owner’s unit. Complex factors affect whether either of these options will lead to a successful collection.

HOAs have long been required to have a written policy concerning collection of delinquent assessments. Until the new law, HOAs were free to craft their policies however they wished and it was unclear whether following policies was mandatory. A typical policy would contemplate sending one or more informal notices to a delinquent owner followed by formal legal action as necessary. At any point in the collection process, the HOA and the delinquent owner could, but were not required, to negotiate a payment plan.  Read More……