On January 8, 2025, Colorado lawmakers introduced House Bill 1043, a legislative measure aimed at enhancing transparency and support for homeowners facing delinquency issues related to Homeowners Association (HOA) assessments. The bill seeks to address growing concerns about the financial pressures on unit owners and the potential consequences of unpaid assessments, including foreclosure.

One of the key provisions of House Bill 1043 mandates that when a unit owner requests a copy of their ledger to verify their debt, the HOA must provide this information within seven business days. This requirement is designed to ensure that homeowners have timely access to their financial records, allowing them to understand their obligations and take necessary actions to address any delinquencies.

The bill also emphasizes the importance of communication regarding the consequences of failing to cure delinquency. It stipulates that homeowners must be informed that their accounts may be turned over to collection agencies or face lawsuits if they do not resolve their debts within thirty days. This provision aims to encourage prompt action from homeowners and mitigate the risk of severe financial repercussions.

Additionally, House Bill 1043 highlights the availability of free online resources through the HOA Information and Resource Center. This center will provide homeowners with information on credit counseling and the implications of unpaid assessments, including the potential for foreclosure. By promoting access to these resources, the bill seeks to empower homeowners with the knowledge needed to navigate their financial challenges.

Starting in January 2026, the Division of Real Estate will be required to present data annually to legislative committees regarding the number of individuals seeking assistance from the HOA Information and Resource Center. This provision aims to track the effectiveness of the resources provided and ensure that the needs of homeowners are being met.

While the bill has garnered support for its focus on homeowner rights and financial transparency, it may face opposition from some HOA representatives who argue that it could complicate the collection process. Critics may express concerns about the potential burden on associations and the implications for their financial stability.

The significance of House Bill 1043 lies in its potential to reshape the relationship between homeowners and HOAs in Colorado. By mandating clearer communication and access to resources, the bill could help prevent financial distress for homeowners and reduce the likelihood of foreclosure. As the legislative process unfolds, stakeholders will be closely monitoring the discussions surrounding this bill, which could have lasting implications for housing stability in the state.