Denver adds rules for HOA-led foreclosures
Foreclosures initiated by homeowners associations in the city are set to face additional regulations.
Catch up quick: The Denver City Council approved new rules on Monday for what HOAs need to do before they can try to foreclose on a property.
Driving the news: The Master Homeowners Association for Green Valley Ranch in far northeast Denver faced scrutiny earlier this year when it was revealed that nearly half of all foreclosures in the city were initiated by the HOA.
- Council president Stacie Gilmore, who introduced the bill, called this a "disproportionate" figure last month.
- She added that many of the homeowners facing these foreclosures hadn't been informed of their rights or resources, and called some of their violations "small."
- For example, one house had a car parked on a concrete pad, which led to a GVR homeowner being threatened with foreclosure, Denverite reported.
Details: The bill will require HOAs to give homeowners a 30-day notice before starting a foreclosure. The associations must also provide resources, like legal or housing assistance programs, to help people stay in their homes.
What's next: The bill will go into effect in August.
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