DENVER (KDVR) — Homeowner associations could face major changes if a bill proposed in the House on Wednesday gains approval through the Colorado legislature.
New strategies are now being considered to regulate homeowners’ associations across the state after foreclosure notices were handed out to 60 families in Green Valley Ranch.
One of these key strategies can be found in HB22-1137, which would force HOAs to do a better job of communicating with homeowners, like Doug Marsh of Parker, who got the surprise of his life from the association he was a member of.
“I did not learn there was a problem until one day about a year and a half after we bought our home,” said Marsh. “Somebody knocks on my door with papers. They are serving us with a lawsuit saying you haven’t paid your dues.”
Many homeowners have contacted FOX31 saying they have also had a wide range of issues with homeowners associations and are afraid of losing their homes.
Marsh said, in his case, it was just poor communication concerning a billing issue.
“This was not necessary. We didn’t need to do this,” Marsh said. “There were so many simpler things that could have been done and should have been done well before it got to this.”
The HOA Transparency and Accountability Bill would also reduce big fines for relatively minor issues, like grass being too long. Marsh said that the HOA’s way of doing business is unacceptable and puts people’s homes at risk.
Andrew Mowery Colorado is leading a group now trying to help get HOAs under control. It is called the Colorado HOA Homeowner Advocates and they aim to fight for homeowners.
“This bill will keep people in their homes and help reduce foreclosures. It’s also going to re-balance things between homeowners and their Boards and management companies, and it’s also going to reduce costs,” said Mowery.
The Homeowner advocates group says it has found cases involving hundreds of foreclosures.
If passed, the bill won’t solve all the problems but the group says it is the start toward preventing many other homeowners from losing their houses.
The bill is having its first reading Wednesday in the House Transportation and Local Government Committee.
If it passes through the committee, it will then head to the House before possibly proceeding to the Senate for final approval.