HB 13-1276 Summary

• Requires unit owners' associations to adopt written collection policies specifying payment due dates, late fees, returned-check charges, and available remedies before using collection agencies or pursuing legal action.

• Mandates associations send delinquent unit owners a notice of delinquency at least 30 days before collection action, including the debt amount, ledger verification contact information, and payment plan options.

• Requires associations to offer delinquent unit owners a good-faith opportunity to enter into a payment plan allowing payoff of past-due amounts in equal installments over at least 6 months, with exceptions for non-occupant owners or repeat defaulters.

• Restricts lien foreclosure to cases where the debt equals or exceeds 6 months of common expense assessments and the executive board has formally voted by recorded vote to authorize legal action on a per-unit basis; legal actions filed without this recorded vote authorization must be dismissed without costs assessed to the owner.

• Applies to common interest communities and all debt collection practices, payment plans, and foreclosure proceedings beginning January 1, 2014.