Changes to HOA Collections and Foreclosures Begin Oct. 1—Here’s What Colorado Communities Should Know About HB25-1043

On October 1, 2025, a new Colorado law known as HB25-1043 will take effect, ushering in significant changes for HOA communities. Intended to enhance protections for unit owners in relation to enforcement actions by community associations, the legislation introduces new requirements for collections, delinquency notices, foreclosure procedures, and reporting to the Department of Regulatory Agencies (DORA).

If your board has not reviewed its policies yet, now is the time to do so. Read on for an overview of what will change under HB25-1043 and what your HOA needs to do in order to stay compliant.

Requirements for Contact and Notice Delivery

The new law introduces the following requirements related to contacting homeowners and delivering notices:

• Contact Information Requests. HOAs must regularly request phone numbers (for calls and text messages) and email addresses from homeowners or their designated contacts.
• Stricter Notice Delivery Requirements. If a Notice of Delinquency must be sent, and the owner has not provided digital contact information, the notice must go out via regular mail.

Updated Collection Policy Content

Your HOA’s Collection Policy and Notice of Delinquency will now need to advise property owners of the following:

• That foreclosure may result in the loss of some or all of the owner’s equity in their property
• The availability of information and how to access DORA’s HOA Information and Resource Center
• The availability of credit counseling through HUD, accessible via a link on the Colorado Department of Local Affairs (DOLA) website
• That owners may request a copy of their ledger, which must be provided within seven business days

Major Changes to the Foreclosure Process

Some of the law’s most notable provisions include changes to how HOAs must navigate the foreclosure process. Specifically:

• Enhanced Pre-Foreclosure Notices. Before filing a foreclosure, associations must send a 30-day Notice of Intent to Foreclose that references the right to seek mediation (this is an existing requirement) and the right to seek credit counseling (new requirement). This Notice must be sent by certified mail and two other means of delivery, such as phone, text, email, or regular mail.
• Lienholder Notification. No later than five business days after initiating legal action to foreclose, the association must send written and electronic notice to each lienholder identified in the unit owner’s property records, informing them of the right to cure the nonpayment and the unit owner’s right to file a motion to stay the sale.
• Motion to Stay the Foreclosure Sale. At any time after the association files a foreclosure action, the unit owner may file a motion to stay the sale. If granted, the stay will last up to nine months, and can be extended by the court for good cause.

New DORA Reporting Requirements

When renewing annual DORA registrations, HOAs must now report:

• Delinquency metrics, such as the number of owners who have been delinquent for six months or longer and the number of payment plans that owners have entered.
• Legal actions, such as the number of judgments obtained for unpaid assessments and the number of foreclosure actions filed.

Action Steps for HOAs

With the effective date for HB25-1043 quickly approaching, HOA boards in Colorado should take the following steps as soon as possible:

• Update Policies. Revise your Collection Policy and Delinquency Notice to reflect the new legal requirements.
• Prepare for DORA Reporting. Start tracking new delinquency and legal action data now to be ready for the new reporting requirements.
• Implement a Process for Contact Information. Establish and document a process for collecting up-to-date contact information from owners.

Clear View HOA Financial Can Help You Navigate These Changes

With HB25-1043 reshaping the collections and foreclosure process, HOA boards will need to act swiftly to stay compliant and avoid risk. Clear View HOA Financial is here to help you review your current policies, assess areas of exposure, and streamline your financial processes. While updates to governing documents must be handled by a qualified attorney, we’re happy to recommend and coordinate with one of our trusted legal partners to guide your board through the necessary changes. Contact us today to request a custom quote!