Bill raises HOA foreclosure thresholds to $10,000 or two years; sponsor cites inflation as rationale
Summary
Senate Bill 14-94 would raise the voluntary assessment delinquency threshold that allows a homeowners association to foreclose from $1,200 or one year to $10,000 or two years; sponsor said the existing threshold has not been adjusted for inflation and the change addresses modern assessment levels.
Senate Bill 14-94 would increase the threshold at which a homeowners association (HOA) may foreclose for unpaid assessments from one year or $1,200 to two years or $10,000, and clarifies that associations may foreclose when an owner remains delinquent on any assessment or portion of an assessment.
A committee sponsor explained the intent: the $1,200 threshold had not been increased in a long time and could allow foreclosure after a relatively short delinquency period given current monthly assessments. "Do I think you should be able to be foreclosed on for $1,200? No," the sponsor said, adding that many dues amounts have risen with inflation and the update is intended to prevent quick foreclosures for relatively modest arrears.
The bill also includes language intended to prevent gaming the threshold—staff said the measure ensures an owner who has been delinquent would need to make up the full amount rather than catching up a few months to drop below the threshold.
Caucus discussion included clarification that the change applies to assessments, not fines for things like leaving a trash can out. No floor vote was recorded in caucus; the bill was reported from committee and placed on the third-read consent calendar.
