On October 1, 2025, House Bill 25-1043 (the “House Bill”) went into effect.  The House Bill is a comprehensive bill that requires most owners’ associations (“HOAs”) that are subject to the Colorado Common Interest Ownership Act (“CCIOA”) to update their governing documents, adjust collection policies and provide certain additional information to the Division of Real Estate (“DRE”) upon the HOA’s registration or renewal.  This post is a brief overview of the House Bill; for more information on the House Bill, please contact Otten Johnson, or visit the Colorado Department of Regulatory Agencies HOA Information.

Pursuant to C.R.S Section 38-33.3-117(1.5)(c), all HOAs created in Colorado must have a policy concerning the collection of unpaid assessments.  The House Bill requires additional information to be added to the HOA’s unpaid assessment collection policies. 

The House Bill mandates that at least 30 days prior to initiating a foreclosure action to recover money owed to the HOA, the HOA must send the applicable unit owner notice (in written and electronic format) that includes the following information:

  1. An advisement that the unit owner may request a copy of the HOA’s ledger verifying the amount owed, together with the name and contact information for the individual the unit owner may contact to request such a copy.  The notice must also advise that, if requested, a copy of the ledger must be sent to the unit owner no later than seven business days after the request.
    1. Prior to the House Bill, HOAs were not required to provide a copy of the ledger within seven business days of a unit owner’s request.
  2. An advisement that action is required to cure the delinquency and that failure to cure the delinquency within 30 days could result in the HOA filing a lien and instituting foreclosure action which could result in the sale of the unit at auction and the unit owner losing some or all of the unit owner’s equity in the unit.
    1. Prior to the House Bill, HOAs were not required to inform unit owners that their unit could be sold at auction.
  3. An advisement on the availability of, and instructions on how to access, free online information through the HOA Information and Resource Center created in C.R.S. Section 12-10-801(1) relating to the collection of assessments by an HOA and the availability of online information from the Federal Department of Housing and Urban Development concerning credit counseling before foreclosure that may be accessed through a link on the Colorado Department of Local Affairs website.  The notice must also include information on what credit counseling may entail for the unit owner and the kind of services that credit counseling could include.
    1. Prior to the House Bill, HOAs were not required to provide this information on credit counseling.

Notably, prior to the House Bill, HOAs were required only to substantially comply with CCIOA’s assessment and foreclosure requirements in order to avail itself of remedies against delinquent owners.  Now, after the House Bill, HOAs are required to strictly comply with CCIOA’s assessment and foreclosure requirements.  This means that HOAs need to be particularly careful in drafting their governing documents and initiating action against a unit owner for unpaid amounts.  If a court finds that the HOA has not strictly complied with CCIOA, the HOA risks a court staying foreclosure proceedings to allow the HOA to come into strict compliance and/or not granting the HOA certain remedies available to it under CCIOA.  During the stay period, the HOA is not permitted to assess or accrue late fees, interests, or other delinquency charges against a unit owner.

The House Bill also requires that, as a part of an HOA’s annual registration, an HOA must submit the following information:

  1. The number of unit owners that are six or more months delinquent in the payment of assessments during the preceding 12-month period;
  2. The number of judgements obtained against unit owners; and
  3. The number of foreclosure actions filed by the HOA.

Otten Johnson attorneys have assisted several HOAs with updating their governing documents and are happy to discuss the House Bill in more detail.