State Bill Colorado

Amendments for HB22-1137

House Journal, April 13
26 HB22-1137 be amended as follows, and as so amended, be referred to
27 the Committee of the Whole with favorable
28 recommendation:
29
30 Amend printed bill, strike everything below the enacting clause and
31 substitute:
32 "SECTION 1. In Colorado Revised Statutes, 38-33.3-209.5,
33 amend (2)(a), (5)(a) introductory portion, and (5)(a)(V) introductory
34 portion; and add (1.7), (2)(c), (6), (7), (8), (9), and (10) as follows:
35 38-33.3-209.5. Responsible governance policies - due process
36 for imposition of fines - procedure for collection of delinquent
37 accounts - enforcement through small claims court - definitions.
38 (1.7) (a) WITH REGARD TO A UNIT OWNER'S DELINQUENCY IN PAYING
39 ASSESSMENTS, FINES, OR FEES, AN ASSOCIATION SHALL:
40 (I) FIRST CONTACT THE UNIT OWNER TO ALERT THE UNIT OWNER
41 OF THE DELINQUENCY BEFORE TAKING ACTION IN RELATION TO THE
42 DELINQUENCY PURSUANT TO SUBSECTION (1.7)(a)(II) OF THIS SECTION
43 AND SHALL MAINTAIN A RECORD OF ANY CONTACTS, INCLUDING
44 INFORMATION REGARDING THE TYPE OF COMMUNICATION USED TO
45 CONTACT THE UNIT OWNER AND THE DATE AND TIME THAT THE CONTACT
46 WAS MADE. ANY CONTACTS THAT A COMMUNITY ASSOCIATION MANAGER
47 OR A PROPERTY MANAGEMENT COMPANY MAKES ON BEHALF OF AN
48 ASSOCIATION PURSUANT TO THIS SUBSECTION (1.7)(a) IS DEEMED A
49 CONTACT MADE BY THE ASSOCIATION AND NOT BY A DEBT COLLECTOR AS
50 DEFINED IN SECTION 5-16-103 (9). A UNIT OWNER MAY IDENTIFY ANOTHER
51 PERSON TO SERVE AS A DESIGNATED CONTACT FOR THE UNIT OWNER TO BE
52 CONTACTED ON THE UNIT OWNER'S BEHALF FOR PURPOSES OF THIS
53 SUBSECTION (1.7)(a)(I). A UNIT OWNER MAY ALSO NOTIFY THE
54 ASSOCIATION IF THE UNIT OWNER PREFERS THAT CORRESPONDENCE AND
55 NOTICES FROM THE ASSOCIATION BE MADE IN A LANGUAGE OTHER THAN
1 ENGLISH. AN ASSOCIATION MAY DETERMINE THE MANNER IN WHICH A
2 UNIT OWNER MAY IDENTIFY A DESIGNATED CONTACT. IN CONTACTING THE
3 UNIT OWNER OR A DESIGNATED CONTACT, AN ASSOCIATION SHALL SEND
4 THE SAME TYPE OF NOTICE OF DELINQUENCY REQUIRED TO BE SENT
5 PURSUANT TO SUBSECTION (5)(a)(V) OF THIS SECTION, INCLUDING BY
6 SENDING IT BY CERTIFIED MAIL FOR WHICH THE ASSOCIATION RECEIVES
7 CONFIRMATION OF ITS RECEIPT, AND PHYSICALLY POST A COPY OF THE
8 NOTICE OF DELINQUENCY AT THE UNIT OWNER'S UNIT. IN ADDITION, THE
9 ASSOCIATION SHALL CONTACT THE UNIT OWNER BY ONE OF THE
10 FOLLOWING MEANS:
11 (A) FIRST-CLASS MAIL;
12 (B) TEXT MESSAGE TO A CELLULAR NUMBER THAT THE
13 ASSOCIATION HAS ON FILE BECAUSE THE UNIT OWNER HAS PROVIDED THE
14 CELLULAR NUMBER TO THE ASSOCIATION; OR
15 (C) E-MAIL TO AN E-MAIL ADDRESS THAT THE ASSOCIATION HAS
16 ON FILE BECAUSE THE UNIT OWNER HAS PROVIDED THE E-MAIL ADDRESS
17 TO THE ASSOCIATION.
18 (II) REFER A DELINQUENT ACCOUNT TO A COLLECTION AGENCY OR
19 ATTORNEY ONLY IF A MAJORITY OF THE EXECUTIVE BOARD VOTES TO
20 REFER THE MATTER IN A RECORDED VOTE AT A MEETING CONDUCTED
21 PURSUANT TO SECTION 38-33.3-308 (4)(e). A COMMUNITY ASSOCIATION
22 MANAGEMENT OR PROPERTY MANAGEMENT COMPANY ACTING ON BEHALF
23 OF THE ASSOCIATION SHALL NOT REFER A DELINQUENT ACCOUNT TO A
24 COLLECTION AGENCY OR AN ATTORNEY UNLESS A MAJORITY OF THE
25 EXECUTIVE BOARD VOTES TO REFER THE MATTER IN A RECORDED VOTE AT
26 A MEETING CONDUCTED PURSUANT TO SECTION 38-33.3-308 (4)(e).
27 (b) (I) AN ASSOCIATION SHALL NOT IMPOSE THE FOLLOWING ON A
28 DAILY BASIS AGAINST A UNIT OWNER:
29 (A) LATE FEES; OR
30 (B) FINES ASSESSED FOR VIOLATIONS OF THE DECLARATION,
31 BYLAWS, COVENANTS, OR OTHER GOVERNING DOCUMENTS OF THE
32 ASSOCIATION. AN ASSOCIATION MAY ONLY IMPOSE FINES FOR VIOLATIONS
33 IN ACCORDANCE WITH THIS SUBSECTION (1.7)(b).
34 (II) (A) WITH RESPECT TO ANY VIOLATION OF THE DECLARATION,
35 BYLAWS, COVENANTS, OR OTHER GOVERNING DOCUMENTS OF AN
36 ASSOCIATION THAT THE ASSOCIATION REASONABLY DETERMINES
37 THREATENS THE PUBLIC SAFETY, HEALTH, OR WELFARE, THE ASSOCIATION
38 SHALL PROVIDE THE UNIT OWNER WRITTEN NOTICE, IN ENGLISH AND IN
39 ANY LANGUAGE THAT THE UNIT OWNER HAS INDICATED A PREFERENCE FOR
40 CORRESPONDENCE AND NOTICES PURSUANT TO SUBSECTION (1.7)(a)(I) OF
41 THIS SECTION, OF THE VIOLATION INFORMING THE UNIT OWNER THAT THE
42 UNIT OWNER HAS SEVENTY-TWO HOURS TO CURE THE VIOLATION OR THE
43 ASSOCIATION MAY FINE THE UNIT OWNER.
44 (B) IF, AFTER AN INSPECTION OF THE UNIT, THE ASSOCIATION
45 DETERMINES THAT THE UNIT OWNER HAS NOT CURED THE VIOLATION
46 WITHIN SEVENTY-TWO HOURS AFTER RECEIVING THE NOTICE, THE
47 ASSOCIATION MAY IMPOSE FINES ON THE UNIT OWNER EVERY OTHER DAY
48 AND MAY TAKE LEGAL ACTION AGAINST THE UNIT OWNER FOR THE
49 VIOLATION; EXCEPT THAT, IN ACCORDANCE WITH SUBSECTION (8)(c)(I) OF
50 THIS SECTION, THE ASSOCIATION SHALL NOT PURSUE FORECLOSURE
51 AGAINST THE UNIT OWNER BASED ON FINES OWED.
52 (III) (A) IF AN ASSOCIATION REASONABLY DETERMINES THAT A
53 UNIT OWNER COMMITTED A VIOLATION OF THE DECLARATION, BYLAWS,
54 COVENANTS, OR OTHER GOVERNING DOCUMENTS OF THE ASSOCIATION,
55 OTHER THAN A VIOLATION THAT THREATENS THE PUBLIC HEALTH, SAFETY,
1 OR WELFARE, THE ASSOCIATION SHALL, THROUGH CERTIFIED MAIL FOR
2 WHICH THE ASSOCIATION RECEIVES CONFIRMATION OF ITS RECEIPT,
3 PROVIDE THE UNIT OWNER WRITTEN NOTICE, IN ENGLISH AND IN ANY
4 LANGUAGE THAT THE UNIT OWNER HAS INDICATED A PREFERENCE FOR
5 CORRESPONDENCE AND NOTICES PURSUANT TO SUBSECTION (1.7)(a)(I) OF
6 THIS SECTION, OF THE VIOLATION INFORMING THE UNIT OWNER THAT THE
7 UNIT OWNER HAS THIRTY DAYS TO CURE THE VIOLATION OR THE
8 ASSOCIATION, AFTER CONDUCTING AN INSPECTION AND DETERMINING
9 THAT THE UNIT OWNER HAS NOT CURED THE VIOLATION, MAY FINE THE
10 UNIT OWNER; HOWEVER, THE TOTAL AMOUNT OF FINES IMPOSED FOR THE
11 VIOLATION MAY NOT EXCEED FIVE HUNDRED DOLLARS.
12 (B) AN ASSOCIATION SHALL GRANT A UNIT OWNER TWO
13 CONSECUTIVE THIRTY-DAY PERIODS TO CURE A VIOLATION BEFORE THE
14 ASSOCIATION MAY TAKE LEGAL ACTION AGAINST THE UNIT OWNER FOR
15 THE VIOLATION. IN ACCORDANCE WITH SUBSECTION (8)(c)(I) OF THIS
16 SECTION, AN ASSOCIATION SHALL NOT PURSUE FORECLOSURE AGAINST THE
17 UNIT OWNER BASED ON FINES OWED.
18 (IV) IF THE UNIT OWNER CURES THE VIOLATION WITHIN THE
19 PERIOD TO CURE AFFORDED THE UNIT OWNER, THE UNIT OWNER MAY
20 NOTIFY THE ASSOCIATION OF THE CURE AND, IF THE UNIT OWNER SENDS
21 WITH THE NOTICE VISUAL EVIDENCE THAT THE VIOLATION HAS BEEN
22 CURED, THE VIOLATION IS DEEMED CURED ON THE DATE THAT THE UNIT
23 OWNER SENDS THE NOTICE. IF THE UNIT OWNER'S NOTICE DOES NOT
24 INCLUDE VISUAL EVIDENCE THAT THE VIOLATION HAS BEEN CURED, THE
25 ASSOCIATION SHALL INSPECT THE UNIT AS SOON AS PRACTICABLE TO
26 DETERMINE IF THE VIOLATION HAS BEEN CURED.
27 (V) ONCE THE UNIT OWNER CURES A VIOLATION, THE ASSOCIATION
28 SHALL NOTIFY THE UNIT OWNER, IN ENGLISH AND IN ANY LANGUAGE THAT
29 THE UNIT OWNER HAS INDICATED A PREFERENCE FOR CORRESPONDENCE
30 AND NOTICES PURSUANT TO SUBSECTION (1.7)(a)(I) OF THIS SECTION:
31 (A) THAT THE UNIT OWNER WILL NOT BE FURTHER FINED WITH
32 REGARD TO THE VIOLATION; AND
33 (B) OF ANY OUTSTANDING FINE BALANCE THAT THE UNIT OWNER
34 STILL OWES THE ASSOCIATION.
35 (c) ON A QUARTERLY BASIS, AN ASSOCIATION SHALL SEND TO EACH
36 UNIT OWNER WHO HAS ANY OUTSTANDING BALANCE OWED THE
37 ASSOCIATION AN ITEMIZED LIST OF ALL ASSESSMENTS, FINES, FEES, AND
38 CHARGES THAT THE UNIT OWNER OWES TO THE ASSOCIATION.
39 (2) Notwithstanding any provision of the declaration, bylaws,
40 articles, or rules and regulations to the contrary, the association may not
41 fine any unit owner for an alleged violation unless:
42 (a) The association has adopted, and follows, a written policy
43 governing the imposition of fines; and
44 (c) THE POLICY:
45 (I) REQUIRES NOTICE REGARDING THE NATURE OF THE ALLEGED
46 VIOLATION, THE ACTION OR ACTIONS REQUIRED TO CURE THE ALLEGED
47 VIOLATION, AND THE TIMELINE FOR THE FAIR AND IMPARTIAL
48 FACT-FINDING PROCESS REQUIRED UNDER SUBSECTION (2)(b) OF THIS
49 SECTION. THE ASSOCIATION MAY SEND THE UNIT OWNER THE NOTICE
50 REQUIRED UNDER THIS SUBSECTION (2)(c)(I) IN ACCORDANCE WITH
51 SUBSECTION (1.7)(a) OF THIS SECTION.
52 (II) SPECIFIES THE INTERVAL UPON WHICH FINES MAY BE LEVIED
53 IN ACCORDANCE WITH SUBSECTION (1.7)(b) OF THIS SECTION FOR
54 VIOLATIONS THAT ARE CONTINUING IN NATURE.
55
1 (5) (a) Notwithstanding any provision of the declaration, bylaws,
2 articles, or rules and regulations to the contrary or the absence of a
3 relevant provision in the declaration, bylaws, articles, or rules or
4 regulations, the association or a holder or assignee of the association's
5 debt, whether the holder or assignee of the association's debt is an entity
6 or a natural person, may not use a collection agency or take legal action
7 to collect unpaid assessments unless the association or a holder or
8 assignee of the association's debt has adopted, and follows, a written
9 policy governing the collection of unpaid assessments AND UNLESS THE
10 ASSOCIATION COMPLIES WITH SUBSECTION (7) OF THIS SECTION. The policy
11 must, at a minimum, specify:
12 (V) That, before the entity turns over a delinquent account of a
13 unit owner to a collection agency or refers it to an attorney for legal
14 action, the entity must send the unit owner a notice of delinquency, BY
15 CERTIFIED MAIL FOR WHICH THE ASSOCIATION RECEIVES CONFIRMATION
16 OF ITS RECEIPT, specifying:
17 (6) A NOTICE OF DELINQUENCY THAT AN ASSOCIATION SENDS TO
18 A UNIT OWNER FOR UNPAID ASSESSMENTS, FINES, FEES, OR CHARGES MUST:
19 (a) BE WRITTEN IN ENGLISH AND IN ANY LANGUAGE THAT THE
20 UNIT OWNER HAS INDICATED A PREFERENCE FOR CORRESPONDENCE AND
21 NOTICES PURSUANT TO SUBSECTION (1.7)(a)(I) OF THIS SECTION;
22 (b) SPECIFY WHETHER THE DELINQUENCY CONCERNS UNPAID
23 ASSESSMENTS; UNPAID FINES, FEES, OR CHARGES; OR BOTH UNPAID
24 ASSESSMENTS AND UNPAID FINES, FEES, OR CHARGES, AND, IF THE NOTICE
25 OF DELINQUENCY CONCERNS UNPAID ASSESSMENTS, THE NOTICE OF
26 DELINQUENCY MUST NOTIFY THE UNIT OWNER THAT UNPAID ASSESSMENTS
27 MAY LEAD TO FORECLOSURE; AND
28 (c) INCLUDE:
29 (I) A DESCRIPTION OF THE STEPS THE ASSOCIATION MUST TAKE
30 BEFORE THE ASSOCIATION MAY TAKE LEGAL ACTION AGAINST THE UNIT
31 OWNER, INCLUDING A DESCRIPTION OF THE ASSOCIATION'S CURE PROCESS
32 ESTABLISHED IN ACCORDANCE WITH SUBSECTION (1.7)(b) OF THIS
33 SECTION; AND
34 (II) A DESCRIPTION OF WHAT LEGAL ACTION THE ASSOCIATION
35 MAY TAKE AGAINST THE UNIT OWNER, INCLUDING:
36 (A) A DESCRIPTION OF THE TYPES OF MATTERS THAT THE
37 ASSOCIATION MAY TAKE TO SMALL CLAIMS COURT, INCLUDING INJUNCTIVE
38 MATTERS FOR WHICH THE ASSOCIATION SEEKS AN ORDER REQUIRING THE
39 UNIT OWNER TO COMPLY WITH THE DECLARATION, BYLAWS, COVENANTS,
40 OR OTHER GOVERNING DOCUMENTS OF THE ASSOCIATION; AND
41 (B) A DESCRIPTION OF THE SMALL CLAIMS PROCESS AND THE UNIT
42 OWNER'S RIGHTS AND RESPONSIBILITIES IF THE MATTER IS TAKEN TO
43 SMALL CLAIMS COURT.
44 (7) (a) AN ASSOCIATION SHALL NOT COMMENCE A LEGAL ACTION
45 TO INITIATE A FORECLOSURE PROCEEDING BASED ON A UNIT OWNER'S
46 DELINQUENCY IN PAYING ASSESSMENTS UNLESS:
47 (I) THE ASSOCIATION HAS COMPLIED WITH EACH OF THE
48 REQUIREMENTS IN THIS SECTION AND IN SECTION 38-33.3-316.3 RELATED
49 TO A UNIT OWNER'S DELINQUENCY IN PAYING ASSESSMENTS;
50 (II) THE ASSOCIATION HAS PROVIDED THE UNIT OWNER WITH A
51 WRITTEN OFFER TO ENTER INTO A REPAYMENT PLAN PURSUANT TO
52 SECTION 38-33.3-316.3 (2) THAT AUTHORIZES THE UNIT OWNER TO REPAY
1 THE DEBT IN MONTHLY INSTALLMENTS OVER EIGHTEEN MONTHS. UNDER
2 THE REPAYMENT PLAN, THE UNIT OWNER MAY CHOOSE THE AMOUNT TO BE
3 PAID EACH MONTH, SO LONG AS EACH PAYMENT MUST BE IN AN AMOUNT
4 OF AT LEAST TWENTY-FIVE DOLLARS UNTIL THE BALANCE OF THE AMOUNT
5 OWED IS LESS THAN TWENTY-FIVE DOLLARS; AND
6 (III) WITHIN THIRTY DAYS AFTER THE ASSOCIATION HAS PROVIDED
7 THE OWNER WITH A WRITTEN OFFER TO ENTER INTO A REPAYMENT PLAN,
8 THE UNIT OWNER HAS EITHER:
9 (A) DECLINED THE REPAYMENT PLAN; OR
10 (B) AFTER ACCEPTING THE REPAYMENT PLAN, FAILED TO PAY AT
11 LEAST THREE OF THE MONTHLY INSTALLMENTS WITHIN FIFTEEN DAYS
12 AFTER THE MONTHLY INSTALLMENTS WERE DUE.
13 (b) A UNIT OWNER WHO HAS ENTERED INTO A REPAYMENT PLAN
14 PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION MAY ELECT TO PAY THE
15 REMAINING BALANCE OWED UNDER THE REPAYMENT PLAN AT ANY TIME
16 DURING THE DURATION OF THE REPAYMENT PLAN.
17 (8) AN ASSOCIATION SHALL NOT:
18 (a) CHARGE A RATE OF INTEREST ON UNPAID ASSESSMENTS, FINES,
19 OR FEES IN AN AMOUNT GREATER THAN EIGHT PERCENT PER YEAR;
20 (b) ASSESS A FEE OR OTHER CHARGE TO RECOVER COSTS INCURRED
21 FOR PROVIDING THE UNIT OWNER A STATEMENT OF THE TOTAL AMOUNT
22 THAT THE UNIT OWNER OWES;
23 (c) FORECLOSE ON AN ASSESSMENT LIEN IF THE DEBT SECURING
24 THE LIEN CONSISTS ONLY OF ONE OR BOTH OF THE FOLLOWING:
25 (I) FINES THAT THE ASSOCIATION HAS ASSESSED AGAINST THE UNIT
26 OWNER; OR
27 (II) COLLECTION COSTS OR ATTORNEY FEES THAT THE
28 ASSOCIATION HAS INCURRED AND THAT ARE ONLY ASSOCIATED WITH
29 ASSESSED FINES.
30 (9) A PARTY SEEKING TO ENFORCE RIGHTS AND RESPONSIBILITIES
31 ARISING UNDER THE DECLARATION, BYLAWS, COVENANTS, OR OTHER
32 GOVERNING DOCUMENTS OF AN ASSOCIATION IN RELATION TO DISPUTES
33 ARISING FROM ASSESSMENTS, FINES, OR FEES OWED TO THE ASSOCIATION
34 AND FOR WHICH THE AMOUNT AT ISSUE DOES NOT EXCEED SEVEN
35 THOUSAND FIVE HUNDRED DOLLARS, EXCLUSIVE OF INTEREST AND COSTS,
36 MAY FILE A CLAIM IN SMALL CLAIMS COURT PURSUANT TO SECTION
37 13-6-403 (1)(b)(I).
38 (10) AS USED IN THIS SECTION, "NOTICE OF DELINQUENCY" MEANS
39 A WRITTEN NOTICE THAT AN ASSOCIATION SENDS TO A UNIT OWNER TO
40 NOTIFY THE UNIT OWNER OF ANY UNPAID ASSESSMENTS, FINES, FEES, OR
41 CHARGES THAT THE UNIT OWNER OWES THE ASSOCIATION.
42 SECTION 2. In Colorado Revised Statutes, 38-33.3-308, amend
43 (4)(e) as follows:
44 38-33.3-308. Meetings. (4) Matters for discussion by an
45 executive or closed session are limited to:
46 (e) Any matter, the disclosure of which would constitute an
47 unwarranted invasion of individual privacy, INCLUDING A DISCIPLINARY
48 HEARING REGARDING A UNIT OWNER AND ANY REFERRAL OF
49 DELINQUENCY; EXCEPT THAT A UNIT OWNER WHO IS THE SUBJECT OF A
50 DISCIPLINARY HEARING OR A REFERRAL OF DELINQUENCY MAY REQUEST
51 AND RECEIVE THE RESULTS OF ANY VOTE TAKEN AT THE RELEVANT
52 MEETING;
53
1 SECTION 3. In Colorado Revised Statutes, 38-33.3-315, amend
2 (2) as follows:
3 38-33.3-315. Assessments for common expenses. (2) Except for
4 assessments under subsections (3) and (4) of this section and section
5 38-33.3-207 (4)(a)(IV), all common expenses shall be assessed against all
6 the units in accordance with the allocations set forth in the declaration
7 pursuant to section 38-33.3-207 (1) and (2). Any past-due common
8 expense assessment or installment thereof shall bear OF A COMMON
9 EXPENSE ASSESSMENT BEARS interest at the rate established by the
10 association not exceeding twenty-one IN AN AMOUNT NOT TO EXCEED
11 EIGHT percent per year.
12 SECTION 4. In Colorado Revised Statutes, 38-33.3-316, amend
13 (1), (2)(d), and (7); and add (12) as follows:
14 38-33.3-316. Lien for assessments - liens for fines, fees,
15 charges, costs, and attorney fees - limitations. (1) (a) The association,
16 if such association is incorporated or organized as a limited liability
17 company, has a statutory lien on a unit for any assessment levied against
18 that unit or fines imposed against its unit owner. Unless the declaration
19 otherwise provides, fees, charges, late charges, attorney fees UP TO THE
20 MAXIMUM AMOUNT AUTHORIZED UNDER SUBSECTION (7) OF THIS SECTION,
21 fines, and interest charged pursuant to section 38-33.3-302 (1)(j), (1)(k),
22 and (1)(l), section 38-33.3-313 (6), and section 38-33.3-315 (2) are
23 enforceable as assessments under this article. The amount of the lien shall
24 include all those items set forth in this section from the time such items
25 become due MAY BE SUBJECT TO A STATUTORY LIEN BUT ARE NOT SUBJECT
26 TO A FORECLOSURE ACTION UNDER THIS ARTICLE 33.3.
27 (b) If an assessment is payable in installments, each installment
28 is a lien from the time it becomes due, including the due date set by any
29 valid association's acceleration of installment obligations MAY BE SUBJECT
30 TO A STATUTORY LIEN IF THE UNIT OWNER FAILS TO PAY THE INSTALLMENT
31 WITHIN FIFTEEN DAYS AFTER THE INSTALLMENT BECOMES DUE, BUT THE
32 ASSOCIATION MAY NOT PURSUE LEGAL ACTION FOR UNPAID MONTHLY
33 INSTALLMENTS UNTIL THE UNIT OWNER HAS FAILED TO PAY AT LEAST
5 34 THREE MONTHLY INSTALLMENTS PURSUANT TO SECTION 38-33.3-209.
35 (7)(a)(III)(B).
36 (2) (d) The association shall have the statutory lien described in
37 subsection (1) of this section for any assessment levied or fine imposed
38 after June 30, 1992. Such A lien shall have DESCRIBED IN SUBSECTION (1)
39 OF THIS SECTION HAS the priority described in this subsection (2) if the
40 other lien or encumbrance is created after June 30, 1992.
41 (7) (a) (I) The association shall be IS entitled to costs and
42 reasonable attorney fees incurred by THAT the association in a judgment
43 or decree INCURS in any action or suit FOR A JUDGMENT OR DECREE
44 brought by the association under this section.
45 (II) A COURT SHALL DETERMINE REASONABLE ATTORNEY FEES IN
46 ACCORDANCE WITH RULE 121 SEC. 1-22 OF THE COLORADO RULES OF CIVIL
47 PROCEDURE.
48 (b) AN ASSOCIATION IS NOT ENTITLED TO RECOVER ATTORNEY
49 FEES UNDER SUBSECTION (7)(a) OF THIS SECTION FOR ATTORNEY FEES
50 INCURRED BEFORE THE ASSOCIATION HAS COMPLIED WITH THE NOTICE
51 REQUIREMENTS OF SECTION 38-33.3-209.5 (1.7)(a) WITH REGARD TO ANY
52 MATTER FOR WHICH THE ASSOCIATION IS REQUIRED TO COMPLY WITH THE
53 NOTICE REQUIREMENTS OF SECTION 38-33.3-209.5 (1.7)(a).
54
1 (12) IF A UNIT HAS BEEN FORECLOSED, A MEMBER OF THE
2 EXECUTIVE BOARD, AN EMPLOYEE OF A COMMUNITY ASSOCIATION
3 MANAGEMENT COMPANY REPRESENTING THE ASSOCIATION, AN EMPLOYEE
4 OF A LAW FIRM REPRESENTING THE ASSOCIATION, OR AN IMMEDIATE
5 FAMILY MEMBER, AS DEFINED IN SECTION 2-4-401 (3.7), OF ANY SUCH
6 EXECUTIVE BOARD MEMBER, COMMUNITY ASSOCIATION MANAGEMENT
7 COMPANY EMPLOYEE, OR LAW FIRM EMPLOYEE SHALL NOT PURCHASE THE
8 FORECLOSED UNIT.
9 SECTION 5. In Colorado Revised Statutes, 38-33.3-316.3,
10 amend (2); repeal (3); and add (4) and (5) as follows:
11 38-33.3-316.3. Collections - limitations - violations. (2) A
12 payment plan negotiated between the association or a holder or assignee
13 of the association's debt, whether the holder or assignee of the
14 association's debt is an entity or a natural person, and the unit owner
15 pursuant to this section must permit the unit owner to pay off the
16 deficiency in equal installments over a period of at least six EIGHTEEN
17 months. Nothing in this section prohibits an association or a holder or
18 assignee of the association's debt from pursuing legal action against a unit
19 owner if the unit owner fails to comply with the terms of his or her THE
20 UNIT OWNER'S payment plan. A unit owner's failure to remit payment of
21 an THREE OR MORE agreed-upon installment INSTALLMENTS PURSUANT TO
22 SECTION 38-33.3-209.5 (7)(a)(III)(B), or to remain current with regular
23 assessments as they come due during the six-month EIGHTEEN-MONTH
24 period, constitutes a failure to comply with the terms of his or her THE
25 UNIT OWNER'S payment plan.
26 (3) For purposes of this section, "assessments" includes regular
27 and special assessments and any associated fees, charges, late charges,
315 28 attorney fees, fines, and interest charged pursuant to section 38-33.3-
29 (2).
30 (4) IF A UNIT OWNER WHO HAS BOTH UNPAID ASSESSMENTS AND
31 UNPAID FINES, FEES, OR OTHER CHARGES MAKES A PAYMENT TO THE
32 ASSOCIATION, THE ASSOCIATION SHALL APPLY THE PAYMENT FIRST TO THE
33 ASSESSMENTS OWED AND ANY REMAINING AMOUNT OF THE PAYMENT TO
34 THE FINES, FEES, OR OTHER CHARGES OWED.
35 (5) IF AN ASSOCIATION HAS VIOLATED ANY FORECLOSURE LAWS,
36 THE UNIT OWNER IN RELATION TO WHOM THE VIOLATION OCCURRED MAY,
37 WITHIN FIVE YEARS AFTER THE VIOLATION OCCURRED, FILE CIVIL SUIT IN
38 A COURT OF COMPETENT JURISDICTION AGAINST THE ASSOCIATION TO SEEK
39 DAMAGES. THE COURT MAY AWARD THE UNIT OWNER DAMAGES IN AN
40 AMOUNT OF UP TO TWENTY-FIVE THOUSAND DOLLARS, PLUS COSTS AND
41 REASONABLE ATTORNEY FEES, IF THE UNIT OWNER PROVES THE VIOLATION
42 BY A PREPONDERANCE OF THE EVIDENCE.
43 SECTION 6. In Colorado Revised Statutes, 13-6-403, amend (1),
44 (2) introductory portion, and (2)(h) as follows:
45 13-6-403. Jurisdiction of small claims court - limitations.
46 (1) (a) On and after January 1, 1996, The small claims court shall have
47 HAS concurrent original jurisdiction with the county and district courts in
48 all civil actions in which the debt, damage, or value of the personal
49 property claimed by either the plaintiff or the defendant, exclusive of
50 interest and cost COSTS, does not exceed seven thousand five hundred
51 dollars, including such civil penalties as may be provided by law. By way
52 of further example, and not limitation, the small claims court shall have
53 HAS jurisdiction to hear and determine actions in tort and assess damages
54 therein IN TORT ACTIONS not to exceed seven thousand five hundred
55 dollars.
1 (b) The small claims court division shall also have ALSO HAS
2 concurrent original jurisdiction with the county and district courts in
3 actions where a party seeks:
4 (I) TO ENFORCE RIGHTS AND RESPONSIBILITIES ARISING UNDER THE
5 DECLARATION, BYLAWS, COVENANTS, OR OTHER GOVERNING DOCUMENTS
6 OF A UNIT OWNERS' ASSOCIATION, AS DEFINED IN SECTION 38-33.3-103 (3),
7 IN RELATION TO DISPUTES ARISING FROM ASSESSMENTS, FINES, OR FEES
8 OWED TO THE UNIT OWNERS' ASSOCIATION AND FOR WHICH THE AMOUNT
9 AT ISSUE DOES NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS,
10 EXCLUSIVE OF INTEREST AND COSTS.
11 (II) To enforce a restrictive covenant on residential property and
12 the amount required to comply with the covenant does not exceed seven
13 thousand five hundred dollars, exclusive of interest and costs; in actions
14 (III) Where a party seeks Replevin if the value of the property
15 sought does not exceed seven thousand five hundred dollars; and in
16 actions
17 (IV) Where a party seeks To enforce a contract by specific
18 performance or to disaffirm, avoid, or rescind a contract and the amount
19 at issue does not exceed seven thousand five hundred dollars.
20 (2) The small claims court shall have no HAS ONLY THAT
21 jurisdiction except that specifically conferred upon it by law, AS
22 PROVIDED IN SUBSECTION (1) OF THIS SECTION. In particular, it shall have
23 no DOES NOT HAVE jurisdiction over the following matters:
24 (h) Actions involving injunctive relief, except as required to:
25 (I) ENFORCE RIGHTS OR RESPONSIBILITIES ARISING UNDER THE
26 DECLARATION, BYLAWS, COVENANTS, OR OTHER GOVERNING DOCUMENTS
27 OF A UNIT OWNERS' ASSOCIATION, AS DEFINED IN SECTION 38-33.3-103 (3),
28 AND INCLUDING ACTIONS SEEKING DECLARATORY RELIEF;
29 (I) (II) Enforce restrictive covenants on residential property;
30 (II) (III) Enforce the provisions of section 6-1-702.5; C.R.S.;
31 (III) (IV) Accomplish replevin; and
32 (IV) (V) Enter judgments in actions where a party seeks to enforce
33 a contract by specific performance or to disaffirm, avoid, or rescind a
34 contract;
35 SECTION 7. Act subject to petition - effective date -
36 applicability. (1) This act takes effect at 12:01 a.m. on the day following
37 the expiration of the ninety-day period after final adjournment of the
38 general assembly; except that, if a referendum petition is filed pursuant
39 to section 1 (3) of article V of the state constitution against this act or an
40 item, section, or part of this act within such period, then the act, item,
41 section, or part will not take effect unless approved by the people at the
42 general election to be held in November 2022 and, in such case, will take
43 effect on the date of the official declaration of the vote thereon by the
44 governor.
45 (2) This act applies to conduct occurring on or after the applicable
46 effective date of this act.".
47
48