HB 23-1105

House Bill 23-1105 establishes two task forces in Colorado to study and address issues related to homeowners' rights within Homeowners Associations (HOAs) and Metropolitan Districts. The HOA task force will look into problems like fines, foreclosures, communication with residents, and document availability, while the metro district task force will focus on tax levying practices, foreclosures, governance policies, and transitioning processes. Both task forces are required to publish their findings and submit reports by specific deadlines in 2024. The bill has been signed into law and is now effective, meaning these task forces can start their work immediately with funding provided for implementation.

Official Summary

The act creates the HOA homeowners' rights task force (HOA task force) and the metropolitan district homeowners' rights task force (metro district task force) in the division of real estate (division) in the department of regulatory agencies (department). The director of the division or the director's designee serves as the chair of both task forces. Members of the HOA task force must be designated or appointed on or before August 1, 2023. The HOA task force is required to: Study issues confronting HOA homeowners' rights, including homeowners' associations' fining authority and practices, foreclosure practices, communications with homeowners, and the availability and method of making certain documents available to HOA homeowners in the association; Review HOA homeowners' complaints and relevant state and federal laws related to common interest communities; Review a representative sample of governing documents, governance policies, financial information, and collections and legal activities; and Develop initial findings and conclusions, including legislative recommendations, and, on or before April 15, 2024, prepare a final report. The department must publish the initial findings and conclusions and final report on its website. The HOA task force must submit copies of the final report to the metro district task force, certain legislative committees, and the governor. Members of the metro district task force must be designated or appointed on or before November 1, 2023. The metro district task force is required to: Study issues confronting metropolitan district homeowners' rights, including metropolitan district boards' tax levying authority and practices, foreclosure practices, communications with homeowners, governance policies, and the process by which a metropolitan district could transition into a common interest community; and On or before March 1, 2024, prepare an interim report and, on or before June 15, 2024, a final report regarding its findings and conclusions, publish the reports on the department's website, and submit copies of the reports to certain legislative committees and the governor. For state fiscal year 2023-24, the act appropriates $208,408 from the general fund to the department for use by the division to implement the act and $1,887 from the general fund to the legislative department for use by the general assembly for legislator per diem and travel reimbursement expenses. APPROVED by Governor May 24, 2023 EFFECTIVE May 24, 2023 (Note: This summary applies to this bill as enacted.)

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