HOA foreclosure bill that would add homeowner protections back in front of Colorado lawmakers
A new bill being considered by Colorado lawmakers would protect homeowners from losing everything should they end up in foreclosure with their HOA. Colorado resident Holly Crystal is among those testifying in support.
For nearly 10 years, Crystal has been in and out of court.
"I will say this has absolutely changed my life," she said.
She says it was the only way to fight a property dispute with her homeowner's association.
"If you don't have the money to fund a civil lawsuit which most people, I believe, wouldn't -- I mean, I'm over $400,000, it's ridiculous ... with no end in sight -- then you could potentially lose your property rights," she said.
She's using her experience to fight for reform across the state.
"An investor can come in, swoop in and buy their home and take all the equity," said state Rep. Naquetta Ricks said, who is sponsoring the bill and was behind one that failed in 2024.
"What we want to do is to allow a homeowner to be able to sell their home at fair market value, pay off all their debts and walk away with some money in their pockets," she said.
Opponents believe it will end up costing everyone. John Krueger, Vice President of Government Affairs for Associa, an HOA management company, testified against the bill.
"Colorado has by far the most detailed foreclosure procedures and protections of any state, but at some point the protections for delinquent owners are going to interfere in HOAs' ability to collect their dues, which will negatively impact those communities and all the other members," he said.
Crystal sees it as one step closer to more oversight for an industry that is only getting bigger.
"It's not HOA's board members, it's the bad characters that are infiltrating those positions and can do whatever they want," Crystal said. "There's no consequences," she said.
The bill passed out of its first committee hearing on Tuesday but will face increased scrutiny as it moves through the legislature.
