HB 11-1197 Summary

• Bifurcates the superpriority portion of a homeowners association (HOA) lien from other assessments, prohibiting the HOA from foreclosing on both portions as a single lien with uniform priority.

• Requires senior lienholders who foreclose to pay the HOA the superpriority amount (up to 6 months of assessments) within 6 months after recording the notice of election and demand or notice of lis pendens.

• Prohibits the HOA from adding attorney fees, costs, or other charges to the superpriority amount it may enforce, but allows collection of statutory or contractual interest if payment is not made within 6 months.

• Requires the HOA to provide a ledger accounting for unpaid assessments upon written request, even if it has assigned its interests to another party, with the statement binding on all parties.

• Applies to foreclosure actions where the notice of election and demand is filed on or after the effective date (August 10, 2011, subject to referendum).