As the January 1, 2014, deadline for compliance with HB 1276 (the HOA Debt Collection Bill) gets closer and closer, many associations are scrambling to get their updated collection policies adopted before time runs out. But some boards are wondering what happens if they don’t have their policies updated by January 1st and will it really be that bad.
Pursuant to the Bill, an association that does not comply with the new requirements may not use a collection agency or take legal action to collect unpaid assessments. Therefore, associations who have not adopted their updated policies by January 1st, will not be entitled to pursue their collection until such time as the policy updates are properly adopted (i.e. approved by the board and signed) and a copy submitted to the appropriate collection entity. In other words, noncompliant associations will lose their legal rights to collect assessments.
With less than three months left to comply, make sure your community is not one of the unfortunate associations left behind and unable to collect its assessments. Have your collection policy updated as soon as possible.
For more information concerning the necessary updates, or to request an update to your community’s collection policy, please contact one of our attorneys at 303.432.9999.