A New Collection Law Has Passed
By David Graf
Yes, as many of you have heard, another collections law passed through the legislature and was signed into law by the governor. House Bill 25-1043 becomes effective on October 1, 2025. There are a few things you need to know. We’ll go into each issue separately, but here are the highlights:
All communities subject to CCIOA (the Colorado Common Interest Ownership Act) will need a revised collection policy.
Strict compliance with all foreclosure and lien laws is required to recover legal fees and costs.
Strict compliance is required for any foreclosure proceeding; if a judge finds that the association did not strictly comply with foreclosure laws, the judge may stay the foreclosure case until strict compliance is achieved.
Associations have to “periodically” request a phone number for calls, a cell number for texts, and an email address for emails to contact an owner regarding a delinquency.
Of the “two designated means” of contacting the owner regarding a delinquency, you can contact them via regular US mail if they have not provided a phone number, email address, or cell phone. This means that the electronic communication efforts are preferred.
Associations have to provide a ledger within seven business days after receipt of a request for one.
Additional advisements have to be made, including advising the owner on credit counseling options.
A “notice of intent to foreclose” letter has to be sent to the owner at least 30 days before commencing a foreclosure, which has to be sent in very specific ways.
Within 5 days after starting a foreclosure, all lien holders have to be notified of the action.
Associations must provide, on an annual basis, information to DORA (the Department of Regulatory Agencies) regarding collections, delinquencies, payment plans, and the like.
During a foreclosure, an owner can file a motion stating an intent to sell the property. There are a number of considerations associated with this, but the effect is that the foreclosure will be stayed for 9 months while this sale process takes place.