COLORADO: Legislative Changes to CCIOA Regarding Collection Policies

There are several important legislative updates that will impact how homeowners’ associations (HOAs) manage delinquent accounts. Governor Polis has recently signed House Bill 24-1233, which introduces several modifications to the procedural requirements HOAs must follow when seeking payment of delinquent amounts owed by their members. These updates are designed to streamline communication and ensure fair practices. Here’s a breakdown of the key changes and recommendations for your association:

Key Changes to the Law

1. Elimination of Physical Posting Requirement: Associations are no longer required to physically post a copy of the notice of delinquency at the member’s unit. This change aims to reduce the administrative burden on associations and protect the privacy of members.
2. Expanded Notification Methods: In addition to sending the notice of delinquency via certified mail (return receipt requested), associations must now also contact the delinquent member using two (2) of the following methods:
   • A telephone call to the member’s phone number on file with the association.
   • A text message to the member’s phone number on file with the association.
   • An email to the member’s email address on file with the association.

   This expansion ensures that members are more likely to receive timely notifications through multiple channels, reducing the chances of missed communications.

3. Cost Limitation for Certified Mail: Associations cannot charge the member more than the actual cost of the certified mail for providing the required collection notices under the Colorado Common Interest Ownership Act (CCIOA). This provision ensures transparency and fairness in the costs passed on to members.

Recommended Actions for Associations

To ensure compliance with these new requirements, SJJ Law recommends that associations update their collection policies and procedures accordingly. Here are our specific recommendations:

1. Amend Collection Policies: Associations should amend their existing collection policies to specify that notices of delinquencies will be provided in the manner required by CCIOA. This amendment can be implemented via a board resolution. Clear and updated policies will help avoid any procedural missteps and potential legal challenges.
2. Adopt a Written Rule for Contact Information: Associations should adopt a written rule requiring members to provide the association with their telephone numbers and e-mail addresses. This is crucial for ensuring the association can comply with the new notification requirements under CCIOA. Having accurate contact information on file will facilitate effective communication and reduce the likelihood of disputes.

How SJJ Law Can Assist

We’re here to help your association smoothly transition to these new requirements. We offer comprehensive services to update your collection policies and procedures, ensuring they align with the latest legislative changes. Our services include:

• Drafting and implementing amendments to your collection policies.
• Creating written rules to mandate the provision of up-to-date contact information from members.

Contact us at any time with questions or for further assistance. We look forward to serving your associations and helping you navigate these changes.

Stay informed with the latest legal updates and ensure your association remains compliant. For more detailed guidance and support, reach out to SJJ Law today!