HB 25-1043
CHANGES TO COLLECTION PROCESSES FOR HOMEOWNER ASSOCIATIONS
Effective Date – October 1, 2025
As you may be aware, changes were implemented by the Colorado legislature to the Collection Processes, which will go in effect on October 1, 2025. This new bill revised a number of requirements and sections from an Association’s Collection Policy.
Most notable changes in the Collection Policy include, but are not limited to:
The ability to send First Class Delinquency Notices if the Owner has not provided an email or phone number. However, if these are provided, the Association must still send a two of the three required additional notices via either text, email or phone call as required under earlier bills.
The requirement to add additional information to the Payment Plan offer letter.
The addition of a seven (7) day deadline to provide a ledger to an Owner once they’ve requested it.
It is important to note that an Owner can now pursue the Association for funds if the requirements are not adhered to and that the Association cannot take any collection actions unless the Collection Policy has been amended to reflect all the new requirements and changes.
Given the revisions, the Collection Policies of every client will need to be amended to include these changes.
Our fee to amend the Collection Policy for existing clients will be $195.00. The cost to draft a new Collection Policy for new clients is $285.00.
We encourage all of our clients to contact our office via email at info@westernlawgroup.com to request the amendment to the Collection Policy as the Association must be in compliance with the amended legislation and, adopting the policy early will help the Association in amending the Collection Notices as needed.
As always, our office is available for any questions you may have regarding the upcoming changes, costs and other legal matters.