Legislative Update: Cleanup Saved for Later

Legislative Update

As the legislature approaches the end of the 2023 session (the legislature adjourns on May 6), various uncertainties remain. Several bills remain pending, including:

• Creation of a Homeowners Association and Metropolitan District Task Force (HB 23-1105);
• Regulation of water-wise landscaping in common interest communities (SB 23-178);
• Electric vehicle and charging requirements (HB 23-1233); and
• The proposed state-wide land use bill (SB 23-213).

Notably absent is any HB 22-1137 “cleanup” legislation. Ostensibly, any changes to address the negative consequences of HB 22-1137 will be postponed until the next legislative session.

Associations in Colorado have undoubtedly been adversely impacted by HB 22-1137 – legally, financially, and operationally. The extent of the impact has not been fully assessed or quantified. However, without additional changes to solve the negative and unintended impacts of HB 1137, what is clear is that communities and owners will continue to suffer from its effects. Instead of using funds to address significant concerns such as deferred maintenance, reserve funding, or investing in community infrastructure and amenities – matters which undeniably improve the quality and safety of living and the ability of owners to obtain financing (especially first-time home buyers) – associations are forced to spend substantial money on management and legal fees to collect assessments and address routine compliance issues.

In advance of the 2024 legislative session, various stakeholder groups will assuredly continue to assess the scope and empirical impacts of HB 22-1137, including the financial and legal burdens imposed on associations. Hopefully, with the benefit of careful analysis, this will lead to the development of more thoughtful and meaningful solutions.