Support HB 24-1337, Requiring HOAs to Offer Mediation Prior to Filing a Collection/Foreclosure Lawsuit

MAC Members, we need you to contact your local State Senator and urge them to support this important legislation. A full explanation of the legislation is below. This bill will be heard in theSenate Local Government and Housing Committee on Tuesday April 23rd at 2PM.

The Committee begins at 2pm in Room SCR 352 in the Capitol Building. If you can, come testify in person, or you can also testify virtually.
This link explains how to testify virtually and shows how to sign up.

https://www2.leg.state.co.us/CLICS/CLICS2024A/commsumm.nsf/signIn.xsp

Even if you are not able to testify, please contact your State Senator and urge them to Vote Yes on House Bill 24-1337.You can look up your legislator and get contact information at this link:


https://leg.colorado.gov/find-my-legislator

Why TheMAC Supports HB24-1337

The Mediation Association of Colorado (TheMAC) strongly supports House Bill 24-1337
sponsored by Representatives Jodeh and Bacon, and Senator Coleman. This legislation
modifies the process by which a common interest community association (HOA) seeks
collection of fees and fines from homeowners within the community. It improves notice, limits
attorney fees, and requires the association to offer mediation to the homeowner prior to
filing a collection/foreclosure lawsuit.

A home is almost always a family’s most valuable asset. More importantly, it is the literal roof over their heads. Every family deserves a fair process to resolve financial disputes with their HOA and this is the objective of HB 24-1337.


The Colorado Bar Association Alternative Dispute Resolution Section (CBA/ADR) in coordination with TheMAC proposed language contained in House Amendment 008 that obligates HOAs to at least offer the opportunity to mediate the dispute prior to filing a lawsuit.

As MAC members know, there are many benefits to mediation in this situation. First and foremost, it allows resolution earlier in the legal process, and if settled at that point, always saves the HOA and the homeowner additional costs. It encourages dialog and resolution of the conflict among parties that, by definition, must find a way to live together in the community.

Mediation also empowers parties in conflict to resolve their own disputes rather than placing their fate in the hands of a judge. This leads to greater satisfaction by the parties and increases the likelihood of compliance. Mediation is voluntary so a homeowner is free to decline the offer
for early resolution. But experience demonstrates that when offered and accepted, the parties are very likely to settle their dispute in a mutually agreeable way. Please contact your local legislators and urge them to vote YES on House Bill 24-1337!

Please contact your local legislators and urge them to vote YES on House Bill 24-1337!

You can find contact information for legislators at:

https://leg.colorado.gov/legislators

On Behalf of theMAC and the Legislative Committee

Dated: April 17, 2024