October 8, 2025 | Mark Luis Foster

In the category of “what’s possible to come in Minnesota” is news that Colorado’s new HOA transparency law went into effect on October 1. The Owner Equity Protection in Homeowners’ Association Foreclosure Sales, as it’s called, is designed to protect homeowners in HOAs through prevention or delay of home foreclosures; and increased transparency with state regulation.

One of the prime sponsors of the bill was Senator Tony Exum (D), who represents portions of Colorado Springs. He told KRDO-TV13;

“[The law] requires the HOA to provide clear and timely notices about outstanding balances, as well as information about free resources, regarding HOA collections and foreclosures,” Sen. Exum said. He added that now HOAs will have to report annual data to the Colorado Department of Regulatory Agencies (DORA) on delinquencies, judgment payment plans, foreclosures, and more.

On the foreclosure side of this bill, the law allows HOA homeowners faced with foreclosure to delay the foreclosure sale. The new provision requires owners of the home or unit to file a motion with the court to delay the date of auction, allowing owners time to sell the property themselves. The delay could last up to nine months.

This seems problematic as someone in foreclosure who delays the sale also needs the money to petition the court, get legal help, fix up the property for private sale, and so on. Time will tell what the effect of this portion of the legislation will have on foreclosures and HOAs that are dealing with them.

As for the transparency issue, KRDO reports:

“[The law] requires the HOA to provide clear and timely notices about outstanding balances, as well as information about free resources, regarding HOA collections and foreclosures,” Sen. Exum said. He added that now HOAs will have to report annual data to the Colorado Department of Regulatory Agencies (DORA) on delinquencies, judgment payment plans, foreclosures, and more.

Some residents are skeptical about its impact:

“How many HOA governing documents are not going to match the current laws or haven’t been updated, such as ours hasn’t been updated in 20-something years?” [HOA resident Heather] McBroom asked. She also wondered if new regulations would result in higher fees from management companies.

Could be a harbinger of things to come in Minnesota. Read the KRDO story HERE.