HB 25-1043 (Chapter 433, Session Laws of Colorado 2025) added C.R.S. §38-33.3-123(3): "as a condition precedent to recovering money owed to an association, collection costs, or reasonable attorney fees or costs through the foreclosure of an association lien, the association shall strictly comply with any applicable association lien or foreclosure provisions of this title 38 and any applicable lien or foreclosure provisions of the association's declaration, bylaws, articles, and rules and regulations." If a court determines that the community "is not in strict compliance with the lien or foreclosure provisions of this title 38", it "may stay the proceedings to grant the association a reasonable period of time to come into strict compliance with the law." During the stay "the association shall not assess or accrue late fees, interest, or other delinquency charges against the unit owner." New (1)(f)(III.5) adds a factor for a court setting attorney fees in a foreclosure of a lien for unpaid assessments: "Whether the association incurred inflated or duplicative attorney fees due to a stay in court proceedings". The act applies to enforcement actions instituted on or after October 1, 2025. Effective October 1, 2025.
What the law said, and what it says now
Before
(III) Whether the amount of time spent or fees incurred by the attorney are disproportionate to the needs of the case, considering the complexity of the case or the efforts required to obtain the unpaid assessments;
(IV) Whether the foreclosure action was contested or required the association to respond to unmeritorious defenses; and
(V) Other factors typically considered in determining an award of attorney fees.
After
(III) Whether the amount of time spent or fees incurred by the attorney are disproportionate to the needs of the case, considering the complexity of the case or the efforts required to obtain the unpaid assessments;
(III.5) Whether the association incurred inflated or duplicative attorney fees due to a stay in court proceedings pursuant to subsection (3) of this section for the association to come into strict compliance with applicable lien or foreclosure provisions of this title 38;
(IV) Whether the foreclosure action was contested or required the association to respond to unmeritorious defenses; and
(V) Other factors typically considered in determining an award of attorney fees.
…
(3) Notwithstanding any law to the contrary, as a condition precedent to recovering money owed to an association, collection costs, or reasonable attorney fees or costs through the foreclosure of an association lien, the association shall strictly comply with any applicable association lien or foreclosure provisions of this title 38 and any applicable lien or foreclosure provisions of the association's declaration, bylaws, articles, and rules and regulations. In addition, if a court determines that a common interest community is not in strict compliance with the lien or foreclosure provisions of this title 38, the court may stay the proceedings to grant the association a reasonable period of time to come into strict compliance with the law. During the stay in proceedings, the association shall not assess or accrue late fees, interest, or other delinquency charges against the unit owner.
Struck-through words were removed by the change; underlined words were added.
Quoted word for word from CommunityPay's captures of the text:
before, July 4, 2026, from the official text (entered by hand); after, September 5, 2026, from the official text (entered by hand).
Passages separated by an ellipsis come from different places in the section.
Updated for HB 25-1043 (Chapter 433, Session Laws of Colorado 2025), in force October 1, 2025. Verified against C.R.S. §38-33.3-123 — Enforcement - limitation as of October 2026.
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