No homeowners association. That was on my list of nonnegotiables when I shopped for a house a couple of decades ago. I don\u2019t want someone measuring the height of my lawn or telling me what shade of beige I can paint my house or disallowing a front yard bird bath or hiking fees every year until I can no longer afford to pay them. When I hear horror stories I breathe a sigh of relief that I am not one of the 2.7 million Coloradans who live under an HOA.<\/p>\n
About half of the state\u2019s population lives under the thumb of an HOA. They might appreciate the communal gardens, community pool, and limits on the number of front yard lawn gnomes, but worry about the dark side of HOA governance \u2013 the proliferation of rules, busybody enforcement, escalating dues and fees, and the risk of HOA foreclosure for delinquent payments. They should worry about the latter. According to a 2023 investigation by the Colorado Sun<\/a>, HOAs filed around 3,000 foreclosure cases since 2018 and more than 250 homes were ultimately auctioned off, most for less than the home\u2019s market value. A hundred of the properties sold for less than $60,000 and the owners lost most or all of their equity.<\/p>\n One such property the Sun found was auctioned off for $5,000, just $110.69 more than the homeowner owed the HOA. A half a year later, the condo sold for $420,000, that\u2019s money the former owner never saw.<\/p>\n This session, the General Assembly is considering legislation to protect homeowners\u2019 equity. House Bill 1043<\/a> by State Rep. Naquetta Ricks would give homeowners facing an HOA foreclosure a nine-month grace period to try and sell the house on the open market. Homeowners unable to get the market value could secure a lien on the home to retain some of the equity from the eventual sale. The bill just passed out of committee.<\/p>\n