Newly Passed Legislation
The 2024 legislative session was a busy one as it relates to legislation that affects Homeowner Associations. Below are the new laws created during the 2024 legislative session that will affect various aspects of Homeowners Associations. Our office is in the process of amending the Collection Policy, Parking Management, and all other applicable policies for our clients. If your community needs these policies amended as well, please feel free to contact us and we will be happy to work with you.
HB24-1233: Association Delinquency Enforcement | Effective 08/07/2024
This legislation will amend several provisions of the previous HB22-1137 by: (1) Removing the posting on unit requirement; (2) Removing First-Class mail notifications for delinquency - now requiring Associations to contact owners by Certified Mail and through at least two of the following methods: telephone call, text message, or email (if provided by homeowner); and (3) Allowing Associations to charge Owners the costs of notices by Certified Mail.
HB24-1337: Real Property Owner Unit Association Collections & Foreclosures | Effective 08/07/2024
This legislation will affect Associations in a number of ways:
Reimbursements: Associations can request reimbursement from Owners for legal fees and collection costs in certain situations, but the legislation limits the amount that can be recovered without starting a legal proceeding. The reimbursement is limited to 50% of the legal fees, not exceeding $5,000. If legal proceedings are initiated, the court may award more legal fees if the homeowner was able to comply but intentionally did not.
Foreclosure: Associations are required to take specific steps before foreclosing on a home. These steps include: (1) Obtaining a personal judgement; (2) Attempting to serve the Owner(s) with a civil action within 180 days of obtaining a personal judgement; (3) Provide 30 days’ notice before a foreclosure advising the Owner(s) that they have the right to engage in mediation prior to litigation; and (4) Provide 30 days' notice of foreclosure to all lien holders of the property of the pending legal action for foreclosure. The notice shall include the amount of any outstanding assessments and other money owed.
The act also creates a homeowner’s right of redemption for 180 days following a foreclosure sale.
HB24-1152: Accessory Dwelling Units | Effective 05/13/2024
This legislation broadly allows Accessory Dwelling Units to be built on single family lots in jurisdictions that are either: (1) A municipality with a population of 1,000 or more, and that is within the area of a metropolitan planning organization; or (2) The portion of a county that is both within a census-designated place with a population of 10,000 or more (as reported in the most recent decennial census), and within the area of a metropolitan planning organization. The legislation states that side setbacks for Accessory Dwelling Units cannot be larger than those for primary dwellings in the same zoning district; rear setbacks must be larger than five feet or larger than the greater of the required setback for other accessory buildings. The amended legislation preserves the right of Associations to impose reasonable rules and regulations on the construction of dwelling units; however, an Association will not be allowed to prohibit dwelling units within the Association.
HB24-1051: Towing Regulations | Effective 08/07/2024
This legislation provides that: (1) Tows where the vehicle Owner does not provide consent must be authorized by property Owner(s) or their employees; (2) Parking authorization is no longer required to be displayed on vehicles having valid authorization to be on the premises; (3) Vehicle protections from towing are extended to include invited guests; and (4) Annual tow reports on volume and pricing be produced and submitted by the towing companies to the select committees of the Colorado Senate and House of Representatives.
HB24-1007: Residential Occupancy Limits | Effective 07/01/2024
This legislation states that a local government may not limit the number of people who live together in a single dwelling based on familial relationship. They do however have authority to implement residential occupancy limits based on: (1) Demonstrated health and safety standards, such as international building code standards, fire code regulations or Colorado Department of Public Health and Environment wastewater and water quality standards; or (2) Local, state, federal or political subdivision affordable housing program guidelines.
HB24-1091: Fire-Hardened Building Materials in Real Property | Effective 03/12/2024
This legislation prohibits covenants that disallow the installation, use, or maintenance of fire-hardened building materials, but allows Associations to impose reasonable rules and regulations on architectural standards related to fire-hardened building materials.
Do you have additional questions about these or other legal matters?
If so, we are here to help, please contact us at info@westernlawgroup.com.
THIS IS NOT LEGAL ADVICE. FOR INFORMATIONAL PURPOSES ONLY.
