May 25, 2022 - News

Denver lawmakers tackle HOA foreclosure practices

A woman stands with a bright sign that says STOP FORECLOSURES while a man stands in the foreground.
Michael Washington, right, protests against foreclosures in front of Green Valley Ranch HOA office in Denver on April 1. Photo: Hyoung Chang/MediaNews Group/The Denver Post via Getty Images

Homeowners associations in Denver could face a new batch of regulations in an attempt to limit predatory practices.

Why it matters: There are currently no rules in Denver requiring HOAs to notify owners about property foreclosures, leaving homeowners in peril of potentially losing their homes.

Why now: Reports from March detailed the Green Valley Ranch Master HOA was threatening owners with foreclosure and fines over things like a car parked on a concrete pad and oil stains on a driveway.

What they're saying: One city official referred to the Green Valley Ranch HOA as "predatory."

  • Meanwhile, Denver City Council president Stacie Gilmore wrote to Gov. Jared Polis and Attorney General Phil Weiser in March requesting a probe into the HOA's practices.

Driving the news: The Denver City Council will this week consider a bill that would make it a requirement for HOAs to give homeowners a 30-day notice before initiating a foreclosure, Gilmore told Axios Denver.

  • The bill also requires HOAs to provide resources to help homeowners avoid losing their property.
  • Gilmore said Denver's proposal complements a bill passed by the state Legislature this session allowing more oversight of HOAs.

What's next: The proposal will be presented Wednesday at the safety and housing committee.

  • The bill could be adopted as soon as June 20.
  • If passed, it would go into effect starting Aug. 30.
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