HOA Legi-Slate

On Thursday, February 18th, we posted a Call to Action on HOA Legi-Slate asking each of you to contact your State Senators to tell them to oppose SB 93 which was scheduled to be voted on by the Colorado Senate that day.  A vote on SB 93 was not held on the 18th and the bill will be taken up by the Senate for action this Thursday.   
 
SB 93, as amended, addresses public trustee foreclosure sales and the ability of the purchaser of a property foreclosed upon by a lender ("certificate of purchase holder") to pay off junior lienors (like homeowner associations) that have a right to redeem the property.  While the concept of junior lienors being paid off by certificate of purchase holders is not a bad concept - the amended version of the bill which will be voted on by the full Senate is one-sided and does not provide any protections to ensure associations will receive full payment of their liens in an appropriate manner.
 
Please contact your State Senators by Thursday to ask them to vote NO on SB 93!  Tell your Senators that:

1. SB 93 creates uncertainty for homeowner associations.  SB 93 requires an association  to accept payment from the certificate of purchase holder.  However, the bill does not require the certificate of purchase holder to tender payment of the full amount of the association's lien.  Are associations required to accept less than full payment of the lien?  What recourse do associations have if they do not receive payment for the full amount of the lien?  The bill is silent on these issues and creates uncertainty and loss of revenue for associations. 
2. SB 93 is vague and creates unreasonable expectations for homeowner associations.   SB 93 does not specify when the certificate of purchase holder may tender payment to an association.  Is an association required to accept payment once it has already redeemed the property?  Is a volunteer or agent of the association required to be available to accept payment anytime of the day before the redemption period ends?  Are board members required to accept payment at their places of business?  Are board members required to sit home and wait for certificate of purchase holders to make payments?  All of these questions will end up being decided in the courts.  Associations cannot afford this litigation. 
3. SB 93 will create a procedural mess.  The amended version of SB 93 attempts to put into the highly procedural public trustee foreclosure statute the concept that certificate of purchase holders have the right to pay off junior lienors.  However, the bill does not address when in the complicated timeline these payments can be made and how these payments affect the inconsistent procedural rights afforded junior lienors in the statute.

Attached is a Fact Sheet that more fully explains the problems with SB 93 and a copy of the Pre-Amended Bill.

Please utilize the Project Vote Smart weblink below to locate the contact information for your State Senator.  Simply type in your zip code on the left hand column of the webpage where it says "Find Your Representatives." 

http://www.votesmart.org/index.htm 

E-mailed Senator Foster to vote no. Had called her last week on the 18th - have not heard back.