CO HB1337

Caps attorney fees at $5,000 or 50% of the amount owed (whichever is less) for collection actions and non-payment disputes in common interest communities, with annual inflation adjustments starting August 1, 2025.

Requires associations seeking to foreclose on liens for unpaid assessments to first obtain a personal judgment against the unit owner through civil action, with limited exceptions for death, incapacity, or unsuccessful service.

Mandates 30-day mediation notice before associations initiate judicial foreclosure proceedings on residential units, allowing unit owners to request mediation within 30 days.

Prohibits foreclosed units from being purchased by executive board members, management company employees, attorneys representing the association, and related entities or individuals within five years of the sale.

Establishes a 30-day redemption period for unit association lien foreclosures and creates a priority system for "alternate lienors" (including tenants, nonprofits, community land trusts, and the state) to redeem properties after initial lienors.