ASSOCIATIONS – DON’T FORGET TO UPDATE YOUR COLLECTIONS POLICY!
The January 1, 2014 deadline for the update of the collection policy is rapidly approaching. House Bill 13-1276 (effective January 1, 2014) revises how an HOA may collect assessments, requires certain disclosures to be made when sending out delinquency notices and mandates that prior to pursuing a foreclosure action; HOA boards must discuss and approve foreclosure on a case by case basis. The HOA collection policy must also include the following:
- 6 month payment plans must be offered in certain situations.
- Foreclosure of delinquent assessments is not allowed until the total amount owed is equal to or greater than 6 months of regular assessments.
- Any late fees and interest which may be charged.
- Any returned check charges the HOA is entitled to impose.
- How the HOA will apply payments made by a delinquent owner.
- A description of the remedies available to the HOA under its governing documents and Colorado law.
- The obligation of the HOA to provide notice to a delinquent owner before the account is turned over to a collection agency or an attorney. No collection action may be undertaken by the HOA until 30 days has passed from the notice date.
Please contact any one of the attorneys noted below if you have specific questions regarding the new collection policy requirements.
Ron Garfield Phone: (970) 925-1936 x200 Email:
Chris LaCroix Phone: (970) 925-1936 x204 Email:
Kursten L. Canada Phone: (970) 949-0707 x853 Email:
In Glenwood Springs: