Amendments for HB24-1337
House Journal, March 21
7 HB24-1337 be amended as follows, and as so amended, be referred to
8 the Committee of the Whole with favorable
9 recommendation:
10
11 Amend printed bill, page 3, line 4, strike "(I)".
12
13 Page 3, line 9, strike "(A)" and substitute "(I)".
14
15 Page 3, line 10, strike "(B)" and substitute "(II)".
16
17 Page 3, line 11, after "PAY;" insert "EXCEPT THAT THE ASSOCIATION IS NOT
18 ENTITLED TO REIMBURSEMENT FOR ATTORNEY FEES THAT EXCEED FIFTY
19 PERCENT OF THE ASSESSMENTS AND ANY MONEY OWED TO THE
20 ASSOCIATION AS DESCRIBED IN THE INTRODUCTORY PORTION OF THIS
21 SUBSECTION (1)(a);".
22
23 Page 3, line 12, strike "(C)" and substitute "(III)".
24
25 Page 3, strike lines 14 through 16.
26
27 Page 4, strike lines 1 through 3.
28
29 Page 4, line 4, strike "(I)".
30
31 Page 4, line 11, strike "(A)" and substitute "(I)".
32
33 Page 4, line 13, strike "(B)" and substitute "(II)".
34
35 Page 4, strike lines 14 through 20 and substitute "THE failure to comply;
36 without the necessity of commencing a legal proceeding. EXCEPT THAT
37 THE ASSOCIATION IS NOT ENTITLED TO REIMBURSEMENT FOR ATTORNEY
38 FEES THAT EXCEED FIFTY PERCENT OF THE ACTUAL COSTS THE
39 ASSOCIATION OR UNIT OWNER INCURRED AS A RESULT OF THE FAILURE TO
40 COMPLY.".
41
42 Page 5, line 2, strike "FEES, ACTUAL COSTS, OR ACTUAL COSTS OF
43 COLLECTION" and substitute "FEES".
44
45 Page 5, line 14, before "foreclosure" insert "JUDICIAL".
46
47 Page 6, strike lines 26 and 27 and substitute:
48
49 "SECTION 5. In Colorado Revised Statutes, 38-38-100.3, add
50 (1.3), (4.3), (25), and (26) as follows:
51 38-38-100.3. Definitions. As used in articles 37 to 39 of this title
52 38, unless the context otherwise requires:
53 (1.3) "ALTERNATE LIENOR" MEANS A PERSON DEEMED A LIENOR BY
54 SECTION 38-38-305.5 (1)(a).
55
1 (4.3) "COMMON INTEREST COMMUNITY" HAS THE MEANING SET
2 FORTH IN SECTION 38-33.3-103 (8).
103 3 (25) "UNIT" HAS THE MEANING SET FORTH IN SECTION 38-33.3-
4 (30).
5 (26) "UNIT ASSOCIATION LIEN" MEANS A LIEN IN A UNIT IN A
6 COMMON INTEREST COMMUNITY THAT IS HELD BY AN ASSOCIATION AS
7 DEFINED IN SECTION 38-33.3-103 (3).
8 SECTION 6. In Colorado Revised Statutes, 38-38-302, amend
9 (1)(d) introductory portion and (4)(a) as follows:
10 38-38-302. Redemption by lienor - procedure.
11 (1) Requirements for redemption. A lienor or assignee of a lien is
12 entitled to redeem if the following requirements are met to the satisfaction
13 of the officer:
14 (d) The lienor has, within eight business days after the sale, filed
15 a notice with the officer of the lienor's intent to redeem; EXCEPT THAT, IF
16 THE PERSON IS DEEMED AN ALTERNATE LIENOR PURSUANT TO SECTION
17 38-38-305.5 AND THE LIEN BEING FORECLOSED IS A UNIT ASSOCIATION
18 LIEN, THE ALTERNATE LIENOR HAS THIRTY DAYS TO FILE THE NOTICE WITH
19 THE OFFICER OF THE ALTERNATE LIENOR'S INTENT TO REDEEM. A lienor
20 may file a notice of intent to redeem more than eight business days after
21 sale if:
22 (4) Redemption period. (a) (I) EXCEPT AS PROVIDED IN
23 SUBSECTION (4)(a)(II) OF THIS SECTION, no sooner than fifteen business
24 days nor later than nineteen business days after a sale under this article
25 ARTICLE 38, the junior lienor having the most senior recorded lien on the
26 sold property or any portion thereof OF THE SOLD PROPERTY, according to
27 the records, having first complied with the requirements of subsection (1)
28 of this section, may redeem the property sold by paying to the officer, no
29 later than 12 noon on the last day of the lienor's redemption period, in the
30 form specified in section 38-37-108, the amount for which the property
31 was sold with interest from the date of sale, together with all sums
32 allowed under section 38-38-301. Interest on the amount for which the
33 property was sold shall be IS charged at the default rate specified in the
34 evidence of debt, deed of trust, or other lien being foreclosed or, if not so
35 specified, at the regular rate specified in the evidence of debt, deed of
36 trust, or other lien being foreclosed. If different interest rates are specified
37 in the evidence of debt, deed of trust, or other lien being foreclosed, the
38 interest rate specified in the evidence of debt shall prevail PREVAILS. If
39 the evidence of debt does not specify an interest rate, including a default
40 interest rate, THE applicable interest rate as specified in the deed of trust
41 or other lien being foreclosed shall apply APPLIES.
42 (II) (A) IF THE LIEN BEING FORECLOSED IS IN A UNIT ASSOCIATION
43 LIEN, AN ALTERNATE LIENOR'S REDEMPTION PERIOD COMMENCES UPON
44 THE EXPIRATION OF ALL REDEMPTION RIGHTS AS SET BY THE OFFICER IN
45 ACCORDANCE WITH SUBSECTION (4)(d) OF THIS SECTION AND IS NO
46 SOONER THAN THIRTY-FIVE DAYS AFTER THE SALE. THIS SUBSECTION
47 (4)(a)(II) DOES NOT OTHERWISE CHANGE THE REQUIREMENTS OF THIS
48 SECTION FOR AN ALTERNATE REDEEMER.
49 (B) NO SOONER THAN THIRTY-FIVE DAYS AND NO LATER THAN ONE
50 HUNDRED EIGHTY DAYS AFTER A SALE OF A UNIT ASSOCIATION LIEN UNDER
51 THIS ARTICLE 38, THE ALTERNATE LIENOR THAT FILED THE NOTICE WITH
52 THE OFFICER OF THE ALTERNATE LIENOR'S INTENT TO REDEEM AND THAT
53 HAS THE HIGHEST PRIORITY IN THE SOLD PROPERTY MAY REDEEM THE
54 PROPERTY BY PAYING, IN THE FORM SPECIFIED IN SECTION 38-37-108, TO
55 THE OFFICER, NO LATER THAN 12 NOON ON THE LAST DAY OF THE
1 ALTERNATE LIENOR'S REDEMPTION PERIOD, THE AMOUNT FOR WHICH THE
2 PROPERTY WAS SOLD WITH INTEREST FROM THE DATE OF SALE, TOGETHER
3 WITH ALL SUMS ALLOWED UNDER SECTION 38-38-107 AND IF APPLICABLE,
4 THE REDEMPTION AMOUNT PAID BY THE IMMEDIATELY PRIOR REDEEMING
5 LIENOR, WITH INTEREST AT THE RATE SPECIFIED IN SUBSECTION (4)(a) OF
6 THIS SECTION, PLUS THE AMOUNT CLAIMED IN THE STATEMENT DELIVERED
7 BY THE IMMEDIATELY PRIOR REDEEMING LIENOR PURSUANT TO
8 SUBSECTION (6) OF THIS SECTION, INCLUDING THE PER DIEM AMOUNTS
9 THROUGH THE DATE WHEN THE PAYMENT IS MADE, OR IF NO PRIOR LIEN
10 HAS REDEEMED, THE REDEMPTION AMOUNT DETERMINED PURSUANT
11 SUBSECTION (4)(a)(I) OF THIS SECTION.
12 (C) IF PROPERTY IS REDEEMED UNDER THIS SUBSECTION (4)(a)(II),
13 ANY ALTERNATE REDEEMER WITH A LOWER PRIORITY REDEMPTION RIGHT
14 IS EXTINGUISHED.
15 (11) AS USED IN THIS SECTION, "UNIT ASSOCIATION LIEN" MEANS
16 A LIEN IN A UNIT IN A COMMON INTEREST COMMUNITY THAT IS HELD BY AN
17 ASSOCIATION AS DEFINED IN SECTION 38-33.3-103 (3).
18 SECTION 7. In Colorado Revised Statutes, add 38-38-305.5 as
19 follows:
20 38-38-305.5. Persons considered as lienors - redemption of
21 property. (1) (a) FOR THE PURPOSE OF THIS ARTICLE 38, THE FOLLOWING
22 PEOPLE ARE DEEMED ALTERNATE LIENORS WITHOUT A LIEN AMOUNT:
23 (I) THE UNIT OWNER THAT HAS AN INTEREST APPEARING BY AN
24 INSTRUMENT RECORDED IN THE OFFICE OF THE CLERK AND RECORDER OF
25 THE COUNTY PRIOR TO THE RECORDING OF THE LIS PENDENS IS THE FIRST
26 PRIORITY;
27 (II) A TENANT OF THE UNIT, IF THE TENANCY COMMENCED PRIOR
28 TO THE RECORDING OF THE LIS PENDENS AND IF THE LEASE IS NOT
29 RECORDED, IS THE SECOND PRIORITY;
30 (III) A NONPROFIT ENTITY THAT HAS A PRIMARY PURPOSE TO
31 DEVELOP OR PRESERVE AFFORDABLE HOUSING IS THE THIRD PRIORITY;
32 (IV) A COMMUNITY LAND TRUST IS THE FOURTH PRIORITY;
33 (V) A COOPERATIVE HOUSING CORPORATION FORMED PURSUANT
34 TO ARTICLE 33.5 OF THIS TITLE 38 IS THE FIFTH PRIORITY; AND
35 (VI) THE STATE OF COLORADO OR A POLITICAL SUBDIVISION OF
36 THE STATE OF COLORADO IS THE SIXTH PRIORITY.
37 (b) AN ALTERNATE LIENOR'S ABILITY TO REDEEM THE PROPERTY
38 IS SUBJECT TO:
39 (I) A LIENOR THAT HOLDS EVIDENCE OF DEBT SECURED BY THE
40 PROPERTY; OR
41 (II) A PERSON THAT IS DEEMED A LIENOR UNDER SECTION
42 38-38-305.
43 (c) IF AN ALTERNATE LIENOR REDEEMS AFTER THE REDEMPTION OF
44 A LESSEE OR EASEMENT HOLDER, THE ALTERNATE LIENOR, IN ACQUIRING
45 THE PROPERTY, TAKES THE PROPERTY SUBJECT TO THE LEASE OR
46 EASEMENT.
47 (2) THIS SECTION DOES NOT AFFECT THE RIGHTS UNDER THIS
48 ARTICLE 38 OF A LESSEE WHOSE RESIDENTIAL LEASE IS RECORDED.
49 (3) THIS SECTION APPLIES TO THE FORECLOSURE OF A LIEN IN A
50 UNIT IN A COMMON INTEREST COMMUNITY BY AN ASSOCIATION, AS
51 DEFINED IN SECTION 38-33.3-103 (3).
52 SECTION 8. In Colorado Revised Statutes, 38-38-501, add (3)
53 as follows:
54
1 38-38-501. Title vests upon expiration of redemption periods
2 - confirmation deed - definition. (3) AS USED IN THIS SECTION,
3 "REDEMPTION PERIODS" MEANS THE PERIODS OF TIME DURING WHICH A
4 PERSON MAY REDEEM PROPERTY AS DESCRIBED IN SECTION 38-38-302 (4);
5 EXCEPT THAT THE REDEMPTION PERIOD IS THIRTY DAYS IF THE PROPERTY
6 IS A UNIT IN A COMMON INTEREST COMMUNITY; THE LIEN BEING
7 FORECLOSED IS HELD BY AN ASSOCIATION, AS DEFINED IN 38-33.3-103 (3),
8 AND A LIENOR DOES NOT FILE A NOTICE WITH THE OFFICER OF THE LIENOR'S
9 INTENT TO REDEEM.".
10
11 Strike pages 7 through 13.
12
13 Page 14, strike lines 1 through 14.
14
15 Renumber succeeding section accordingly.
16
17
House Journal, April 4
9 Amendment No. 1, Transportation, Housing & Local Government Report,
10 dated March 20, 2024, and placed in member's bill file; Report also
11 printed in House Journal, March 21, 2024.
12
13 Amendment No. 2, by Assistant Majority Leader Bacon:
14
15 Amend the Transportation, Housing, and Local Government Committee
16 Report, dated March 20, 2024, page 1, strike line 1 and substitute:
17 "Amend printed bill, page 3, line 3, strike "(1)(c)" and substitute "(1)(c);
18 and add (1)(f)".
19
20 Page 3 of the bill, line 4, strike "(I)".".
21
22 Page 1 of the report, line 5, after "EXCEED" insert "FIVE THOUSAND
23 DOLLARS OR".
24
25 Page 1 of the report, line 8, strike "(1)(a);"." and substitute "(1)(a),
26 WHICHEVER IS LESS;".".
27
28 Page 1 of the report, line 18, after "EXCEED" insert "FIVE THOUSAND
29 DOLLARS OR".
30
31 Page 2 of the report, line 2, strike "COMPLY."." and substitute "COMPLY,
32 WHICHEVER IS LESS.".".
33
34 Page 2 of the report, after line 4 insert:
35 "Page 5 of the bill, line 3, after "EXCESS OF" insert "FIVE THOUSAND
36 DOLLARS OR".
37
38 Page 5 of the bill, line 6, strike "REGULATIONS." and substitute
39 "REGULATIONS, WHICHEVER IS LESS.
40 (f) IN DETERMINING REASONABLE ATTORNEY FEES PURSUANT TO
41 THIS SUBSECTION (1) RELATING TO AN ASSOCIATION'S FORECLOSURE OF A
42 LIEN AGAINST A UNIT OWNER FOR UNPAID ASSESSMENTS, THE COURT
43 SHALL GIVE CONSIDERATION TO ALL RELEVANT FACTORS, INCLUDING:
44 (I) THE AMOUNT OF THE UNPAID ASSESSMENTS;
45 (II) WHETHER THE AMOUNT OF THE ATTORNEY FEES REQUESTED
46 EXCEEDS THE AMOUNT OF THE UNPAID ASSESSMENTS;
47 (III) WHETHER THE AMOUNT OF TIME SPENT OR FEES INCURRED BY
48 THE ATTORNEY ARE DISPROPORTIONATE TO THE NEEDS OF THE CASE,
49 CONSIDERING THE COMPLEXITY OF THE CASE OR THE EFFORTS REQUIRED
50 TO OBTAIN THE UNPAID ASSESSMENTS;
51 (IV) WHETHER THE FORECLOSURE ACTION WAS CONTESTED OR
52 REQUIRED THE ASSOCIATION TO RESPOND TO UNMERITORIOUS DEFENSES;
53 AND
54
1 (V) OTHER FACTORS TYPICALLY CONSIDERED IN DETERMINING AN
2 AWARD OF ATTORNEY FEES.".".
3
4 Amendment No. 3, by Representative Jodeh:
5
6 Amend printed bill, page 5, line 26, strike "(10.5)" and substitute "(10.5)
7 and (10.7)".
8
9 Page 6, after line 16 insert:
10
11 "(10.7) (a) AT LEAST THIRTY DAYS BEFORE INITIATING LEGAL
12 ACTION TO FORECLOSE A LIEN UNDER THIS SECTION, THE ASSOCIATION
13 SHALL PROVIDE WRITTEN AND ELECTRONIC NOTICE TO THE UNIT OWNER OR
14 THE UNIT OWNER'S DESIGNEE THAT THE UNIT OWNER HAS THE RIGHT TO
15 ENGAGE IN MEDIATION PRIOR TO LITIGATION. TO INITIATE MEDIATION, THE
16 UNIT OWNER MUST RESPOND WITHIN THIRTY DAYS AFTER THE DATE OF THE
17 NOTICE.
18 (b) TO PARTICIPATE IN MEDIATION, BOTH PARTIES MUST:
19 (I) SELECT A MUTUALLY AGREEABLE MEDIATOR KNOWLEDGEABLE
20 ABOUT THIS ARTICLE 33.3 AND COMMON INTEREST COMMUNITY DISPUTES;
21 AND
22 (II) SCHEDULE THE MEDIATION SESSION WITHIN THIRTY DAYS
23 AFTER THE NOTICE PROVIDED IN ACCORDANCE WITH SUBSECTION (10.7)(a)
24 OF THIS SECTION.
25 (c) IF A UNIT OWNER FAILS TO COMPLY WITH SUBSECTION (10.7)(b)
26 OF THIS SECTION WITHIN THIRTY DAYS AFTER THE NOTICE PROVIDED IN
27 ACCORDANCE WITH SUBSECTION (10.7)(a) OF THIS SECTION, THIS
28 SUBSECTION (10.7) DOES NOT BAR THE ASSOCIATION FROM FILING A CIVIL
29 ACTION, WHICH IS SUBJECT TO THE REST OF THIS SECTION.".
30
31 As amended, ordered engrossed and placed on the Calendar for Third
32 Reading and Final Passage.
33
Senate Journal, April 24
After consideration on the merits, the Committee recommends that HB24-1337 be
amended as follows, and as so amended, be referred to the Committee of the Whole with
favorable recommendation.
Amend reengrossed bill, page 6, line 13, strike "portion; and add (10.5) and
(10.7)" and substitute "portion, and (12); and add (10.5), (10.7), and (13)".
Page 7, after line 24, insert:
"(12) (a) If a unit has been foreclosed PURSUANT TO A LIEN SUBJECT TO
THIS SECTION, THE FOLLOWING PERSONS SHALL NOT PURCHASE THE
FORECLOSED UNIT:
(I) A member of the executive board;
(II) An employee of a community association management company
representing the association;
(III) An employee of a law firm representing the association; or
(IV) An immediate family member, as defined in section 2-4-401 (3.7),
of any such AN executive board member, community association management
company employee, or law firm employee; shall not purchase the foreclosed
unit OR
(V) A COMMUNITY ASSOCIATION MANAGEMENT COMPANY
REPRESENTING THE ASSOCIATION.
(b) THE PROHIBITION ON THE PURCHASE OF A FORECLOSED UNIT IN
SUBSECTION (12)(a) OF THIS SECTION INCLUDES AN INDIVIDUAL OR A
COMMUNITY ASSOCIATION MANAGEMENT COMPANY THAT WAS, AT ANY TIME
DURING THE FIVE-YEAR PERIOD IMMEDIATELY PRECEDING THE SALE OF THE
FORECLOSED UNIT, AN INDIVIDUAL OR A COMMUNITY ASSOCIATION
MANAGEMENT COMPANY DESCRIBED IN SUBSECTION (12)(a) OF THIS SECTION.
THE PROHIBITION IN THIS SECTION ALSO INCLUDES A BUSINESS ENTITY THAT
WAS, AT ANY TIME DURING THE FIVE-YEAR PERIOD IMMEDIATELY PRECEDING
THE SALE OF THE FORECLOSED UNIT, OWNED BY OR AFFILIATED WITH AN
INDIVIDUAL OR COMMUNITY ASSOCIATION MANAGEMENT COMPANY DESCRIBED
IN SUBSECTION (12)(a) OF THIS SECTION.
(13) A PERSON THAT PURCHASES A UNIT THROUGH THE FORECLOSURE
OF A LIEN UNDER THIS SECTION ACQUIRES THE UNIT SUBJECT TO ANY
COVENANTS OR LIMITATIONS ON THE USE OR SALE OF THE UNIT TO WHICH THE
PREVIOUS UNIT OWNER WAS SUBJECT.".
Page 10, line 4, strike "REDEEMER." and substitute "LIENOR.".
Page 10, strike lines 23 through 25 and substitute:
"(C) IF THE HIGHEST PRIORITY ALTERNATE LIENOR HAS NOT REDEEMED
THE PROPERTY, EACH SUBSEQUENT ALTERNATE LIENOR THAT IS ENTITLED TO
REDEEM, IN SUCCESSION BASED ON THE PRIORITY OF THE ALTERNATE LIENOR,
HAS AN ADDITIONAL FIVE BUSINESS DAYS TO REDEEM THE PROPERTY. THE
PRIORITY OF THE ALTERNATE LIENORS IS SET FORTH IN SECTION 38-38-305.5
(1)(a). THE ALTERNATE LIENOR MUST REDEEM BY PAYING THE REDEMPTION
AMOUNT DETERMINED PURSUANT TO SUBSECTION (4)(a)(II)(B) OF THIS SECTION
WITHIN THE FIVE-DAY PERIOD, OR, IF NO PRIOR LIENOR HAS REDEEMED, THE
REDEMPTION AMOUNT DETERMINED PURSUANT TO SUBSECTION (4)(a)(I) OF THIS
SECTION, TO THE OFFICER ON OR BEFORE 12 NOON OF THE LAST DAY OF THE
ALTERNATE LIENOR'S REDEMPTION PERIOD.".
Business,
Labor, &
Technology
Senate Journal, April 26
HB24-1337 by Representative(s) Jodeh and Bacon; also Senator(s) Coleman and Exum--Concerning
the rights of a unit owner in a common interest community in relation to the collection of
amounts owed by the unit owner to the common interest community.
Amendment No. 1, Local Government Committee Amendment.
(Printed in Senate Journal, April 24, page(s) 1034-1035 and placed in members' bill files.)
Amendment No. 2(L.012), by Senator Coleman.
Amend the Local Government and Housing Committee Report, dated April 23,
2024, page 1, line 2, after "(10.5)," insert "(10.6),".
Amend reengrossed bill, page 7, after line 3 insert:
"(10.6) SUBSECTION (10.5) OF THIS SECTION:
(a) APPLIES EXCLUSIVELY TO A UNIT OWNED BY AN INDIVIDUAL WHO
OCCUPIES THE UNIT AS THE UNIT OWNER'S PRINCIPAL RESIDENCE, UNLESS THE
UNIT IS USED FOR WORKFORCE HOUSING;
(b) DOES NOT APPLY TO A UNIT OWNED BY AN ENTITY OTHER THAN AN
INDIVIDUAL OR A UNIT THAT IS NOT OCCUPIED AS THE UNIT OWNER'S PRINCIPAL
RESIDENCE, UNLESS THE UNIT IS USED FOR WORKFORCE HOUSING; AND
(c) APPLIES TO A UNIT USED FOR WORKFORCE HOUSING.".
Page 7, after line 22 insert:
"(d) AT LEAST THIRTY DAYS BEFORE INITIATING LEGAL ACTION TO
FORECLOSE A LIEN UNDER THIS SECTION, THE ASSOCIATION SHALL PROVIDE
WRITTEN AND ELECTRONIC NOTICE TO ALL LIENHOLDERS IDENTIFIED ON THE
UNIT OWNER PROPERTY RECORDS OF THE PENDING LEGAL ACTION FOR
FORECLOSURE. THE NOTICE MUST INCLUDE THE AMOUNT OF ANY OUTSTANDING
ASSESSMENT AND OTHER MONEY OWED.".
Amendment No. 3(L.016), by Senator Coleman.
Amend reengrossed bill, page 3, line 3, after "(1)(f)" insert "and (1)(g)".
Page 5, strike line 4, strike "LESS." and substitute "LESS; EXCEPT THAT THE
COURT MAY AWARD ATTORNEY FEES IN EXCESS OF THE LIMITATIONS, BASED ON
THE COURT'S DISCRETION, IF THE COURT FINDS THAT THE UNIT OWNER WAS
FINANCIALLY, PHYSICALLY, AND REASONABLY ABLE TO COMPLY WITH THE
DECLARATION, BYLAWS, ARTICLES, OR RULES AND REGULATIONS BUT
WILLFULLY FAILED TO COMPLY.".
Page 5, after line 20 insert:
"(g) THE LIMITATIONS ON ATTORNEY FEES IN SUBSECTIONS (1)(a)(III),
(1)(b)(II), AND (1)(c)(II) OF THIS SECTION ARE ADJUSTED FOR INFLATION ON
AUGUST 1, 2025, AND EACH YEAR THEREAFTER. INFLATION IS MEASURED BY
THE ANNUAL PERCENTAGE CHANGE IN THE UNITED STATES DEPARTMENT OF
LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX, OR A
SUCCESSOR INDEX, FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY
URBAN CONSUMERS.".
As amended, ordered revised and placed on the calendar for third reading and final
passage.