As part of our ongoing effort to help management companies stay ahead of shifting legal landscapes, TechCollect is spotlighting the most impactful legislative updates across the country. Across the country, states are adopting policies that tighten compliance, protect homeowners, and demand more from the delinquency process – all which falls into the hands of the association management company. These series of articles are written under the legal expertise of CAMCounsel, which provides agentic AI legal support to community association management companies across the United States.
In this post, we focus on Colorado’s latest legislation – HB25-1043, which goes into effect on October 1st – and how TechCollect is purpose-built to help management companies remain compliant, reduce legal exposure, and recover revenue efficiently.
The Compliance Shift in Colorado: HB25-1043
Colorado’s House Bill 25-1043 introduces sweeping requirements for HOAs pursuing delinquent assessments and foreclosures. The law is designed to increase homeowner protections and promote transparency at every stage of the collection process.
Key Requirements:
1. Mandatory Pre-Foreclosure Communication:
- At least 30 days before initiating foreclosure, HOAs must send notices of their intent to foreclose via both physical and electronic delivery. Notices must inform homeowners about available credit counseling resources and the HOA Information and Resource Center. Notices must put homeowners on notice that they might lose equity in their property as a result of a foreclosure sale, that they may lose equity, and that they have a right to mediation before foreclosure.
- Upon a homeowner’s request, the HOA must provide a detailed ledger of outstanding balances within 7 business days.
- These communications are new additions to legislation implemented in 2024 under HB22-1137, which requires an 18-month repayment plan and communication by certified mail with a return receipt and one of the following: regular mail, email, or text.
2. Foreclosure Sale Stay Option:
- Homeowners can request a 9-month stay of foreclosure to sell the property themselves at a fair market value or at an alternative value as determined by the court. HOAs have to inform homeowners of their right to do so.
- During this stay, the HOA cannot assess or accrue late fees, interest, or other delinquency charges against the unit owner.
3. Annual Reporting Requirements for HOAs:
- HOAs must report to the Division of Real Estate the number of owners delinquent for 6 or more months, payment plans initiated, legal judgments obtained, and foreclosure actions taken.
Contact Information Maintenance:
- HOAs are required to periodically request and maintain updated contact information (telephone and email) from homeowners.
- If a homeowner has not provided electronic contact information, the HOA may send delinquency notices via first-class mail in addition to certified mail.
These measures add layers of administrative oversight and legal complexity that most internal workflows aren’t equipped to handle manually.
How TechCollect Handles Compliance, So You Don’t Have To
TechCollect’s platform is already aligned with the requirements of HB25-1043. With a fully automated and legally informed workflow, you can be confident that your AR recovery process stays compliant and efficient without adding to your team’s workload.
Built-In Legal Compliance
- Multichannel Notification Automation: TechCollect ensures all delinquency notices are sent via both email and physical mail, as required by law. This is fully automated through our GenAI workflows – meaning your team doesn’t have to do anything manually.
- State-Specific Disclosures: Built-in templates include Colorado-mandated language about credit counseling services and foreclosure rights – and you have the ability to update to your language before automated distribution.
Real-Time Documentation & Audit Readiness
- All notices, timelines, and homeowner interactions are logged and timestamped.
- Reports on delinquencies, payment plans, and legal actions can be exported directly for annual submission to the Division of Real Estate.
Minimized Legal Risk and Escalation
- Through our automated workflows that align with state legislature, communication channel preferences, and the owner’s likelihood of repayment, TechCollect resolves over 90% of assessments before legal intervention, cutting down the need for foreclosure proceedings.
- Our system triggers payment plan offers and tracks owner responses automatically, helping you avoid violations due to missed documentation or deadlines.
Turn Compliance Burden into a Strategic Advantage
Colorado has been enacting sweeping legislation to protect homeowner debt from skyrocketing, and these actions mark a turning point in community association management: managers must either modernize their collections infrastructure or risk legal missteps, lost revenue, and homeowner frustration.
TechCollect isn’t just another AI solution. It’s a turnkey compliance and communications engine designed to help you meet these evolving demands head-on.
- Reduce legal fees
- Prevent costly escalations
- Empower your team with automation
- Maintain trust with homeowners and boards alike
Add More Value Through A Full Recovery Solution
In addition to using TechCollect’s AR recovery solution, management companies can take full advantage of what we have to offer in terms of delinquency recovery. CAMCounsel and Equity Experts create a complete recovery solution that upholds service and handles delinquency with compassion.
- CAMCounsel was developed as the first agentic legal AI solution dedicated to community association management, helping Managers that wish to file their own liens, update their collection policies, or check governing documents to state compliance.
- Equity Experts provides discounted access to a national legal network while using compassionate strategies like payment plans, education, and ReLEEF to resolve delinquencies. All costs are advanced, keeping money with the community and our goals aligned.
Start With a Free Trial
TechCollect offers a free trial for up to ten communities, so you can experience compliant, efficient AR recovery at zero cost – and keep the revenue you generate. This is the first step in your process to change the way you recover delinquency for good.
Colorado’s new laws are in effect. Are your systems ready?
Let us handle the complexity, so you can stay focused on managing communities and keeping boards and homeowners satisfied with your service.
