HB 22-1137 Summary

• Requires unit owners' associations to contact delinquent owners before taking collection action and maintain contact records; associations must provide initial notice by certified mail, first-class mail, text message, or email.

• Prohibits associations from imposing late fees or fines on a daily basis; violations threatening public safety require 72-hour cure periods, while other violations allow two consecutive 30-day cure periods with a maximum fine of $500 per violation.

• Limits interest rates on unpaid assessments, fines, and fees to 8% per year and prohibits foreclosure based solely on fines owed; restricts foreclosure to cases where unit owners decline a repayment plan or fail to pay three or more monthly installments over an 18-month period.

• Allows small claims court jurisdiction over homeowners' association disputes involving assessments, fines, or fees up to $7,500 and permits courts to award damages up to $25,000 for association foreclosure law violations.

• Requires associations to send monthly itemized statements of outstanding balances and prohibits referring delinquent accounts to collection agencies without a majority executive board vote recorded at a formal meeting.