Bill Summary.  HB13-1276 establishes collection policy requirements for HOAs and regulates the collection of assessments.

Effective Date.  January 1, 2014

New Collection Policy Requirements and Collection Limitations.  Most associations already have collection policies.  Prior to this bill, there were no specific state mandated requirements on the contents of a collection policy.  This bill changes that.  The bill provides that collection may not be pursued unless the association has adopted and follows a written collection policy, which at a minimum includes the following:

Requirements Before Foreclosure of an Association Lien.  Before an association may foreclose on its lien, two requirements must be met:

Assignees of Associations.  Persons who buy assessment accounts from associations and lenders who take assignments of an association's lien rights and assessments are subject to the requirements and limitations of this new law and to the terms of the bill and the association's collection policy

Questions?  Contact the HOA law professionals at Orten Cavanagh & Holmes with any questions on this new law or an association collection policy

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