Bill to Protect HOA Homeowners Passes Committee

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The bill would help keep Coloradans housed by strengthening protections against HOA enforcement and foreclosure

DENVER, CO – The Senate Local Government and Housing Committee today passed a bill that would strengthen safeguards for homeowners in homeowners associations (HOAs) to help them stay housed and recoup their property’s equity if they are forced to sell.

HB25-1043, sponsored by Senator Tony Exum, Sr., D-Colorado Springs, would add several new requirements to HOAs’ enforcement and foreclosure procedures to protect homeowners.

“Homeowners deserve the certainty and stability of knowing that their home will not be sold out from under them without an opportunity to retain their equity – regardless of whether or not they have an HOA,” said Exum. “Becoming a homeowner is a way to build generational wealth and secure housing stability for the long haul. By adding measures to increase transparency, strengthen homeowner protections, and prevent hasty enforcement and foreclosure actions from an HOA, we can keep Colorado families in their homes.”

Under the bill, an HOA would be required to comply with its own bylaws and all applicable state laws before collecting money through enforcement actions. In cases where an HOA pursues a foreclosure against an owner, HB25-1043 would allow an owner to file a court motion to delay the sale of their home at auction for up to nine months, during which they could sell their own home at market value instead of losing it at auction.

The bill would also strengthen and clarify existing notification guidelines, require an HOA to provide owners with a notice regarding their right to credit counseling at least 30 days before initiating foreclosure, and add new reporting requirements to HOAs’ annual registration with the Department of Regulatory Agencies.

The bill now heads to the Senate Appropriations Committee for further consideration. Track the bill’s progress HERE.

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About the Colorado Senate Democrats

The Senate Democratic Caucus for the 2025 legislative session includes Senators James Coleman, Robert Rodriguez, Julie Gonzales, Jeff Bridges, Jessie Danielson, Faith Winter, Chris Kolker, Nick Hinrichsen, Lisa Cutter, Dylan Roberts, Tom Sullivan, Janice Marchman, Kyle Mullica, Tony Exum, Sr., Dafna Michaelson Jenet, Marc Snyder, Cathy Kipp, Judy Amabile, Lindsey Daugherty, Mike Weissman, Iman Jodeh, Matt Ball