HB 25-1123

House Bill 25-1123, also known as the Homeowners' Association Alternative Dispute Resolution bill, requires homeowners and their associations to try informal negotiation and mediation before going to court over disputes. This means that if a homeowner has an issue with their HOA or vice versa, they must first attempt to resolve it through discussion and mediation rather than immediately filing a lawsuit. If these methods don't work, the parties can then choose arbitration or proceed directly to court, but even in court, both sides will be ordered to mediate unless they already have. The bill is now signed into law, meaning homeowners and associations must follow its guidelines when dealing with disputes.

Official Summary

Under current law, common interest communities are encouraged to use mediation prior to filing a complaint with the court. The bill requires permits a dispute between a unit owner and a unit owners' association to go through an internal dispute resolution process participate in an informal negotiation and mediation to resolve the dispute before the parties can file a complaint with the court. If the parties are unable to reach a mediation agreement, the bill allows the parties to undergo arbitration or commence a legal proceeding. If the parties are unable to reach an agreement during the informal negotiation, either party may file a complaint with the court and the court must order the parties to participate in mediation, if mediation has not already taken place. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Votes