(MUSIC PLAYING) - IT'S LIKE, "WELL, THAT'S JUST A THREAT.

THEY CAN'T TAKE AWAY YOUR HOME."

AND THEN, AS THINGS PROGRESSED, YES, THEY CAN TAKE AWAY YOUR HOME.

- THESE ARE MY MINIATURES.

IT'S MY HOBBY.

YOU THINK, IF SOMEBODY CAME INTO YOUR HOUSE WITH A CAMERA, BOY, THE THINGS THEY'D SEE.

THEY'D PRETTY MUCH SEE THE CARDS SPILLED OVER THE TABLE, YOU HAVEN'T EMPTIED THE TRASH YET, THE FOOD STILL COOKING ON THE STOVE.

I LIKE TO CAPTURE THESE LITTLE MOMENTS THAT YOU WOULDN'T NORMALLY SEE.

REMINDS ME OF LIVING IN APARTMENTS AS KIDS.

I THINK IT'S A GIFT FROM GOD TO HAVE A HOUSE.

I WAS NOT RAISED IN A HOUSE.

I WAS RAISED IN APARTMENTS.

AND IT WAS ONE OF THOSE THINGS, AS A KID, I THOUGHT, SOMEDAY, WHEN I GET OLDER, I'M GOING TO LIVE IN A HOUSE.

SO, I DON'T TAKE IT FOR GRANTED.

MY NAME IS WANDA LAKOTA.

WE ARE IN TALLGRASS COMMUNITY OF AURORA, SUBURB OF DENVER, COLORADO.

THIS WAS THE FIRST NEIGHBORHOOD I'VE EVER LIVED IN THAT HAD AN HOA.

AND EVERYTHING ABOUT MY FINANCES CHANGED.

AS IT TURNED OUT, MY HOA FEE WAS ONE OF THOSE THINGS THAT I JUST COULDN'T PAY.

AND THEN, IN SEPTEMBER OF 2020, THE HOA FILED A LIEN.

THIS DOCUMENT WAS THE COURT'S ORDER.

I CALLED THE ATTORNEYS, AND THEIR STANCE WAS, "PAY THE MONEY."

AND I SAID, "WELL, I CAN'T PAY IT.

I WOULD PAY IT.

GOD, I WANT TO PAY IT."

AND THEY SAID, "WELL, THEN WE'LL SEE YOU IN COURT."

- WANDA IS ONE OF DOZENS OF PEOPLE WE'VE TALKED TO OVER THE PAST YEAR WHO HAS BEEN TAKEN TO COURT BY HER OWN NEIGHBORS, SUED BY HER HOMEOWNERS ASSOCIATION.

ROCKY MOUNTAIN PBS AND PROPUBLICA HAVE SPENT MORE THAN A YEAR INVESTIGATING WHAT LIFE IS LIKE IN COLORADO'S HOAS.

AND WE'VE MET PEOPLE IN THIS POSITION FROM ALL WALKS OF LIFE.

- THE HOA HAS MORE POWER THAN THE BANK.

AND I SAY, "HOW IS THIS POSSIBLE?"

- WE MET SINGLE MOTHERS.

- AND THAT JUST BREAKS MY HEART.

- WITH THE HOUSING PRICES WHERE THEY ARE NOW, I CAN'T REALLY AFFORD TO GO ANYWHERE ELSE.

- I WANT THE LAW CHANGED.

- SENIORS WHO BOUGHT THEIR HOMES DECADES AGO.

- I REALLY WANT THE LAW CHANGED.

- HOW IS IT THAT THIS KIND OF CONDUCT IS ALLOWED TO GO ON?

WHY DO PEOPLE DO THIS TO EACH OTHER?

- EVEN A LAWYER WHO FACED HIS OWN COURT CASE.

- THIS IS NOT HOW PEOPLE IN COLORADO TREAT ONE ANOTHER.

- AND BEING SUED BY THE HOA CAN COST HOMEOWNERS A LOT MORE THAN THEY MIGHT EXPECT, ESPECIALLY IF THEY TRY TO FIGHT IT.

- AND YOU HAVE VERY LITTLE RECOURSE.

SURE, YOU CAN TO GO COURT.

BUT IF YOU CAN'T AFFORD YOUR DEBT, YOU CERTAINLY CAN'T AFFORD AN ATTORNEY.

- WANDA LAKOTA'S HOA SUED TO COLLECT A MONEY JUDGEMENT AFTER SHE MISSED A BIANNUAL PAYMENT, WAS LATE WITH THE SECOND, AND MISSED A THIRD.

SHE REPRESENTED HERSELF IN COURT AND LOST, THEN APPEALED AND LOST.

THE HOA TOLD US IT OFFERED WANDA PAYMENT PLANS BEFORE FILING THE LAWSUIT AND AFTER, GIVING HER "EVERY OPPORTUINTY TO RESOLVE THIS MATTER," AND ATTRIBUTED HER GROWING DEBT TO HER "STUBBORN REFUSAL TO ACKOWLEDGE HER RESPONSIBLITY TO PAY THE AMOUNTS DUE."

THE COURT FIGHT LEFT HER OWING MORE THAN $5,600 IN LEGAL FEES AND COSTS.

- IT'S UNREAL AT THIS POINT THAT THE DEBT HAS GROWN SO EXPONENTIALLY.

- LET'S START WITH THE BASICS.

WHAT ARE HOMEOWNERS ASSOCIATIONS?

AND WHY DO THEY HAVE THE POWER THEY HAVE IN COLORADO?

- IT'S A NICE DAY TODAY, ISN'T IT?

I'VE LIVED IN NEIGHBORHOODS WHERE YOU HARDLY KNEW YOUR NEIGHBORS.

BUT HERE, THERE SEEMS TO BE A MUCH MORE NEIGHBORLY FEELING.

HI, KAREN.

YOU WATCHING THE GRASS GROW?

I LIKE THAT.

I LIKE THAT SENSE OF COMMUNITY AND A SENSE OF BELONGING.

MY NAME IS PAT BOOK.

AND WE ARE IN WILLOW SPRINGS COMMUNITY ASSOCIATION HERE IN FORT COLLINS, COLORADO.

MY NEIGHBORS, MY NEIGHBORS SUGGESTED I RUN FOR THE HOA BOARD.

WE HAVE A POOL AND A LITTLE KIDDIE POOL.

WE HAVE WONDERFUL, LITTLE WALKING TRAILS THROUGHOUT THE COMMUNITY, SO YOU CAN ALWAYS GET YOUR STEPS IN.

THERE'S OUR LITTLE POND.

IT'S JUST BEAUTIFUL.

IT'S A BEAUTIFUL PLACE TO WALK AROUND.

WE HAVE AN IRRIGATION POND IN THE CENTER.

IT'S JUST LOVELY, WITH BIG WILLOW TREES AROUND IT.

YOU CAN SIT THERE AND MEDITATE.

I THINK IT'S A GREAT FEELING TO FEEL LIKE YOU CAN WALK THROUGH THE COMMUNITY AND SAY, "WE DID THAT.

WE MADE THAT BETTER."

- WE DO ESTIMATE THAT APPROXIMATELY 46% OF COLORADO'S POPULATION RESIDES IN AN HOA OF ONE FORM OR ANOTHER.

I'M DAVID DONNELLY.

I'M THE HOA INFORMATION OFFICER WITH THE COLORADO'S DIVISION OF REAL ESTATE.

A LOT OF THE NEW CONSTRUCTION THAT IS TAKING PLACE IN THE STATE OF COLORADO IS IN THESE PLANNED COMMUNITIES OR IN THESE COMMON-INTEREST COMMUNITIES.

THERE'S SUCH A WIDE ARRAY OF DIFFERENT TYPES OF COMMUNITIES OUT THERE.

IT COULD BE A RURAL ASSOCIATION THAT MAINTAINS PRIVATE ROADS, OR IT COULD BE A HIGH RISE THAT MAINTAINS ELEVATORS AND BALCONIES AND ALL OF THE BRICKS AND STICKS THAT KEEP THE PLACE UP.

- MY NAME IS DAVID GRAF.

I'M AN ATTORNEY WITH MOELLER GRAF.

WE REPRESENT ONLY COMMUNITY ASSOCIATIONS.

AT ITS CORE, AN ASSOCIATION IS FORMED TO, ON ONE HAND, MAINTAIN COMMON ELEMENTS, GREEN BELTS, POOLS, CLUBHOUSES, THINGS LIKE THAT.

AND THEY SHARE THE EXPENSES AMONG THE OWNERS WHO ARE ALLOWED TO USE THEM.

ON THE OTHER HAND, ASSOCIATIONS ARE FORMED TO ENSURE THAT PEOPLE MAINTAIN THEIR PROPERTIES.

- I'VE NEVER BEEN IN AN HOA UNTIL I CAME TO COLORADO.

NOW I KNOW THERE ARE OVER 9,000 HOAS IN COLORADO.

REALLY?

WHY?

THEN I LEARNED THAT, OK, OF COURSE, THE CITY GAVE APPROVAL TO A DEVELOPER TO DEVELOP THIS COMMUNITY, PLOT ALL THIS LAND, MAKE ALL THE HOUSES AND THE MULTI-UNIT HOUSING AND THE AMENITIES.

AND IN EXCHANGE FOR THAT, THE DEVELOPER CREATES A HOMEOWNERS ASSOCIATION.

MEANTIME, THE CITY HAS OFFLOADED THEIR RESPONSIBILITY.

THEY DON'T HAVE TO TAKE CARE OF OUR PLAYGROUND.

THEY DON'T HAVE TO TAKE CARE OF OUR POOL.

THEY DON'T HAVE TO TAKE CARE OF OUR POND OR OUR IRRIGATION SYSTEM.

THE HOMEOWNERS REALLY HAVE NOTHING TO DO WITH THE WHOLE SETUP OF IT.

IT'S ALL SET UP FOR US.

WE INHERIT IT.

AND THEN WE'VE GOT TO LIVE WITH IT AND MAKE IT WORK AS VOLUNTEERS.

- THE IDEA IS THAT THE PEOPLE GET TO CHOOSE THEIR REPRESENTATIVES.

THE REPRESENTATIVES LEAD.

AND OVER TIME, THE VOLUNTEERS WILL CHANGE.

- AND SO, ALL THE WAY UP, WE PUT IN IRON STREAMERS AND BANISTERS, REDID ALL THE CARPETING TO MATCH THE HALLWAYS.

- YOU'RE A VOLUNTEER BOARD.

BY YOUR DECLARATIONS, YOU CAN'T GET PAID TO DO THIS STUFF.

I AM MICHAEL ST. JAMES.

I AM THE PRESIDENT OF THE BOARD OF DIRECTORS OF LONDON HOUSE HOA.

IT'S A CONDOMINIUM ASSOCIATION.

EVERY YEAR, YOU HAVE AN ANNUAL MEETING, AND THEY VOTE FOR BOARD MEMBERS.

I DIDN'T WANT TO JOIN, AND EVERYONE VOTED ME IN.

- IF I TELL PEOPLE WHEN I'M AT A PARTY THAT I'M AN HOA PRESIDENT, AND I DO SO WITH GREAT CHEERFULNESS, THEY ALL EXPRESS IMMEDIATE SYMPATHY.

BUT I ALWAYS GET, "OH, NO, THE HOA," THE EYES ROLLING, THE "OH, POOR YOU" KIND OF THING.

AND I ALWAYS TRY TO COUNTER IT BECAUSE IT'S NOT TRUE.

- I JUST CONTINUALLY DO NOT WANT TO BE THE PRESIDENT OF THE BOARD.

BUT I KNOW THAT I'M GOOD AT IT.

I KNOW THAT I'M TAKING CARE OF WHAT NEEDS TO BE DONE.

- I HAVE A REAL SENSE OF MAKING A DIFFERENCE, A POSITIVE DIFFERENCE.

- WHAT I LIKE ABOUT LIVING IN AN HOA IS THE IDEA THAT THERE'S NOT LIKELY TO BE TOO MANY ODD USES OF PROPERTY, BARKING DOGS THAT PERSIST FOR DAYS ON END, PROPERTIES THAT MIGHT HAVE NO LANDSCAPING.

I THINK THAT IMPROVES MY PROPERTY VALUE.

- MANY PEOPLE HAVE LOOKED AND RESEARCHED THIS AND SAID LIVING IN A HOMEOWNERS ASSOCIATION INCREASES THE VALUE OF YOUR HOME.

THERE ARE ALSO CONSIDERATIONS THAT A PERSPECTIVE HOMEOWNER NEEDS TO TAKE INTO THEIR MIND, WHICH IS, I'VE GOT A MORTGAGE, I'VE GOT MY PROPERTY INSURANCE, I'VE GOT MY TAXES.

CAN I ALSO AFFORD THAT EXTRA COST OF MY ASSESSMENTS?

- THE MONEY THAT COMES INTO THE ASSOCIATION EVERY MONTH IS FROM WHAT WE CALL HOMEOWNER DUES OR ASSESSMENTS.

WE CHARGE THEM A CERTAIN AMOUNT OF MONEY PER MONTH FOR THE SERVICES THAT THE BUILDING NEEDS, FOR COMMON AREAS, FOR INSURANCES, FOR ALL OF THE PARKING LOT.

- THAT'S OUR ONLY SOURCE OF INCOME.

- THE HOMEOWNERS ASSOCIATION HAS SIGNIFICANT AMOUNT OF POWER.

MY NAME IS JOSE VASQUEZ.

I'M A SUPERVISING ATTORNEY OF THE CONSUMER UNIT AT COLORADO LEGAL SERVICES.

WE PROVIDE LEGAL ASSISTANCE AND REPRESENTATION TO INDIVIDUALS WHO ARE LOW-INCOME.

IF AN INDIVIDUAL FALLS BEHIND ON PAYING THEIR ASSESSMENTS, THAT BECOMES AN ISSUE BECAUSE THERE ARE LATE CHARGES AND OTHER FEES THAT GET IMPOSED.

AND THAT CAN ESCALATE TO FILING A LAWSUIT TO GET A JUDGEMENT AGAINST THE HOMEOWNER.

THE VERY WORST-CASE SCENARIO, IT COULD END UP IN A FILING OF A FORECLOSURE ACTION TO FORECLOSE ON THE INDIVIDUAL'S PROPERTY.

- IF AN OWNER DOES NOT PAY, AND THE ASSOCIATION HAS TO HIRE AN ATTORNEY, SUCH AS MYSELF, IT CAN GET VERY EXPENSIVE.

THE LAW ALLOWS FOR THE COST OF COLLECTION TO BE PASSED ON TO THE OWNER, ASSESSED TO THEIR ASSESSMENT ACCOUNT.

THERE'S KIND OF A PHILOSOPHICAL QUESTION, I THINK, IN HOW WE COLLECT DEBT FROM OWNERS.

DO WE BE AGGRESSIVE AND FORECLOSE?

IT CAN BE VERY EFFECTIVE.

BUT IT CAN ALSO SIGNIFICANTLY INCREASE THE BALANCE THAT THEY OWE.

ONE DAY, THEY OWE 1,000.

THE NEXT DAY, THEY OWE 3,500.

THAT'S A HUGE JUMP IN THE AMOUNT THAT THE HOMEOWNER WOULD HAVE TO PAY.

AND IT COULD THEORETICALLY MAKE IT VERY DIFFICULT FOR THEM TO PAY THAT OFF.

- THE HOME IS GENERALLY A PERSON'S LARGEST ASSET.

IT'S LIKE, YOU DON'T TAKE AWAY SOMEONE'S HOME UNLESS THERE'S SOME REAL, REAL, SERIOUS EGREGIOUS REASON WHY YOU WOULD NEED TO DO THAT AS A LAST RESORT.

- WHEN THEY BUY A HOUSE, THEY DON'T UNDERSTAND THAT THEY'RE GIVING UP, IN ESSENCE, CONTROL OF THEIR PROPERTY TO A SEPARATE ENTITY, THE ASSOCIATION.

AND IF PEOPLE DON'T UNDERSTAND THAT FROM THE VERY BEGINNING, THEN BAD THINGS CAN HAPPEN.

- IT JUST SEEMED LIKE EVERYTHING WAS HAPPENING ALL AT ONCE.

- 2017 WAS A PRETTY CHALLENGING YEAR FOR MIESHA ROSS.

THE SINGLE MOM WELCOMED HER THIRD CHILD.

- I ENDED UP GOING ON MATERNITY LEAVE, AND I WAS ACTUALLY OFF WITHOUT PAY FOR A COUPLE WEEKS.

RIGHT WHEN I RETURNED FROM MATERNITY LEAVE, I WAS IN A CAR ACCIDENT, TOO.

TOTALED MY VEHICLE.

I WAS IN THE CAR WITH MY NEWBORN.

SO, I HAD A LOT OF STUFF GOING ON.

- THEN, A KNOCK AT THE DOOR BROUGHT MORE BAD NEWS.

- YEAH, IT WAS A PROCESS SERVER WHO CAME AND KNOCKED ON MY DOOR AND SERVED ME WITH A FORECLOSURE NOTICE.

AND OF COURSE, I FREAKED OUT.

- MIESHA HAD FALLEN BEHIND ON A LOT OF HER BILLS, BUT SHE SAID SHE HAD WORKED SOMETHING OUT WITH THE MORTGAGE COMPANY.

- BUT THIS WAS THE HOA, AND I HAD NO IDEA THAT AN HOA COULD FORECLOSE ON YOU.

- MIESHA'S FORECLOSURE LAWSUIT DID NOT COME FROM HER MORTGAGE COMPANY.

IT CAME FROM HER HOA.

IT'S CALLED THE TIMBERS HOMEOWNERS ASSOCIATION ONE IN AURORA.

AND WHEN SHE SAW THE AMOUNT THE HOA SAID SHE OWED, IT WAS WAY MORE THAN SHE EXPECTED.

- I DIDN'T KNOW IT HAD GOTTEN THAT BAD.

WITH THE LATE FEES, AND THEN THEY WOULD CHARGE INTEREST, IT JUST KIND OF KEPT SNOWBALLING.

- THIS STARTED A LEGAL FIGHT WITH THE HOA THAT HAS LASTED MORE THAN FOUR YEARS.

MIESHA, A SINGLE MOM OF THREE, FILED FOR BANKRUPTCY TWICE TO TRY TO SAVE HER HOME.

- I WAS EXCITED TO OWN A HOME.

BUT JUST...

DEALING WITH THIS HOA HAS JUST MADE IT HORRIBLE.

- MIESHA AND HER NEIGHBORS AT THE TIMBERS ARE REQUIRED TO PAY $355 EACH MONTH.

IF THEY DON'T PAY FOR THE EQUIVALENT OF SIX MONTHS, THE LAW ALLOWS THE TIMBERS, AND ALL OTHER HOAS IN COLORADO, TO FILE FOR JUDICIAL FORECLOSURE.

HOAS HAVE FILED MORE THAN 2,400 FORECLOSURE CASES ACROSS COLORADO SINCE 2018, ACCORDING TO AN ANALYSIS OF COURT DATA BY ROCKY MOUNTAIN PBS AND PROPUBLICA.

AND IN THE TIMBERS, WE FOUND THIS KIND OF THING HAPPENS A LOT.

IT HAPPENED NOT ONLY TO MIESHA, IT HAPPENED TO MARY AND JANET AND QUITE A FEW OTHER PEOPLE.

COURT RECORDS SHOW THAT IN ALL THE HOA-FILED 41 FORECLOSURE CASES AGAINST ITS RESIDENTS BETWEEN 2018 AND FEBRUARY OF 2022, RECORDS INDICATE MOST OF THOSE CASES WERE RESOLVED BEFORE GOING TO AUCTION.

BUT MANY HOMEOWNERS TOLD US IT WAS A COSTLY PROCESS.

SOME RESIDENTS LIKE MIESHA HAVE BEEN SUED MORE THAN ONCE.

TO UNDERSTAND WHY, WE WENT TO THE TIMBERS AND WE STARTED KNOCKING ON DOORS.

- IT'S LIKE EVERY TIME I TURNED AROUND, I HAD FEES ADDING UP, LEGAL FEES.

- THAT'S WHY WE COULDN'T CATCH UP.

WE KEPT GETTING LATE FEES.

- JUST MULTIPLIES.

- THE BOARD OF DIRECTORS, THE GROUP OF NEIGHBORS IN THE TIMBERS ELECTED TO MAKE DECISIONS FOR THE COMMUNITY, SAY BEFORE THESE CASES WERE FILED, TOO MANY PEOPLE IN THE NEIGHBORHOOD WERE NOT PAYING THEIR DUES.

AT ONE POINT, THE BOARD SAYS HOMEOWNERS WERE $200,000 BEHIND.

AND NECESSARY REPAIRS WERE GETTING DELAYED.

WATER LINES WERE ROUTINELY BURSTING.

ROOFS AND PARKING LOTS NEEDED FIXING.

ONE OF THE COMPLEX'S POOLS SAT BROKEN AND UNUSED.

BY CHANGING COLLECTION ATTORNEYS, THE HOA TOLD US THIS SPRING IT HAD BROUGHT DELINQUENCIES DOWN FROM 200,000 TO LESS THAN 65,000.

AND THE HOA SAYS A LOT OF THESE LONG-DELAYED REPAIRS HAVE NOW GOTTEN DONE.

THAT PROGRESS HAS COME AT A GREAT COST TO SOME NEIGHBORS.

- I DON'T KNOW THAT I COULD HAVE DONE ANYTHING ELSE.

- TAKE MARY KUNIC, FOR EXAMPLE.

- I DIDN'T REALIZE I COULD LOSE MY HOME FOR FALLING BEHIND A FEW MONTHS.

- COURT DOCUMENTS SHOW WHEN THE TIMBERS GOT A DEFAULT JUDGEMENT FOR FORECLOSURE ON HER HOME IN 2018 MARY AND HER LATE HUSBAND OWED THE HOA JUST $480 IN UNPAID DUES AND FEES.

BUT THAT $480 TOTAL GREW TO $5,300 AFTER ADDING IN ATTORNEYS' FEES AND LEGAL COSTS.

THEN IT GREW EVEN MORE, TO $10,000 A FEW MONTHS LATER.

THAT TOTAL INCLUDED MORE UNPAID DUES, MORE HOA FEES, MORE INTEREST, MORE LEGAL FEES AND COSTS.

MARY SAYS HER HUSBAND HAD TO BORROW THE MONEY.

THEY WERE JUST THREE DAYS AWAY FROM LOSING THEIR HOME TO AN AUCTION.

- AT FIRST, IT WAS A DENIAL.

IT'S LIKE, "OH, THAT'S JUST A THREAT.

THEY CAN'T TAKE AWAY YOUR HOME."

AND THEN, AS THINGS PROGRESSED, YES, THEY CAN TAKE AWAY YOUR HOME.

IT'S DISAPPOINTING.

I FELT LIKE I WAS INVOLVED IN MY COMMUNITY, AND I THOUGHT I HAD SOME VALUE.

BUT THIS HAD NOTHING TO DO WITH YOUR INTRINSIC VALUE.

THIS WAS ALL BUSINESS.

- IN MANY HOMEOWNERS ASSOCIATION CASES I'VE SEEN, THE PRIMARY--THE BULK OF THE AMOUNT THAT THE ASSOCIATION IS TRYING TO COLLECT IS ATTORNEYS' FEES.

IT MAKES IT MUCH MORE DIFFICULT FOR THE HOMEOWNER TO PRESERVE THEIR HOME.

- THE SHERIFF SALE OF REAL PROPERTY TO CREATE A JUDICIAL FORECLOSURE.

THE CASE NUMBER IS 2019... - ROCKY MOUNTAIN PBS AND PROPUBLICA FOUND THAT SINCE 2018 MORE THAN 200 FORECLOSURE CASES HAVE RESULTED IN PROPERTIES GETTING SOLD AT SHERIFF SALES LIKE THIS ONE.

- THIS IS FOR THE REAL PROPERTY KNOWN AS 10820 WEST... - FOUR OF THOSE SALES HAVE INVOLVED PROPERTIES AT THE TIMBERS.

- OUR COMPANY BIDS 30,000.

- IT WAS A MISERABLE COUPLE YEARS FOR BOTH OF US.

- JANET JAMES AND HER LATE HUSBAND, EDWARD, ALMOST LOST THEIR TOWNHOUSE IN THE TIMBERS LAST YEAR.

AND IT WAS ALL OVER A FIGHT OVER A $25 LATE FEE.

EVEN THOUGH JANET AND EDWARD MADE ALL OF THEIR MONTHLY PAYMENTS IN THE YEAR LEADING UP TO THEIR FORECLOSURE CASE, THE HOA WAS CHARGING THEM LATE FEES EVERY MONTH, AND EVENTUALLY LEGAL FEES, BECAUSE EDWARD REFUSED TO PAY THAT FEE.

EDWARD KEPT RECEIPTS HE BELIEVED SHOWED HE HAD PAID ON TIME.

BUT THE HOA'S PROPERTY MANAGERS DISAGREED WITH THEM BECAUSE THEY SAID THEY RECEIVED THE PAYMENT LATE.

- THE HOA HAD WAIVED HIS LATE FEES BEFORE.

AND THEY SAID THEY WOULDN'T AGAIN.

- HE WAS STUBBORN AND WASN'T GOING TO PAY IT, EVEN THOUGH IT WAS VERY MINOR.

AND HAD HE JUST PAID IT... - IN THE END, JANET AND EDWARD HAD TO BORROW MORE THAN $7,700 TO SAVE THEIR HOME FROM A SHERIFF SALE.

- HE WAS SORT OF THAT OLD-FASHIONED OPINION THAT IF HE FELT LIKE HE DID THE RIGHT THING, THAT IT WOULD ALL BE OK. AND IT WASN'T OK.

IT WAS NOT OK. - THE HOA DID NOT COMMENT ABOUT INDIVIDUAL CASES.

BUT A TIMBER BOARD MEMBER TOLD US RECENTLY THE COMMUNITY IS IN MUCH BETTER SHAPE BECAUSE OF ITS COLLECTION EFFORTS.

BUT IT'S UNFORTUNATE THAT HAS COME AT THE EXPENSE OF SOME FAMILIES.

THEY ENCOURAGED HOMEOWNERS WHO FALL ON HARD TIMES TO SHARE THAT WITH BOARD MEMBERS.

SO ARRANGEMENTS CAN BE MADE.

AND THE FULL BOARD SENT US A STATEMENT BEFORE THE STORY FIRST PUBLISHED IN APRIL.

READING IN PART, "THE TIMBERS WOULD RATHER WORK WITH AND COMMUNICATE WITH ITS MEMBERS TO RESOLVE DELINQUENCY ISSUES RATHER THAN RELY ON LEGAL ACTION.

OVER THE YEARS, WE HAVE IMPLEMENTED PAYMENT PLANS AND OTHER TOOLS THAT ALLOW A MEMBER TO REGAIN THEIR GOOD STANDING.

UNFORTUNATELY, NOT ALL OUR MEMBERS WITH OUTSTANDING OBLIGATIONS ARE WILLING TO WORK WITH US."

- THEY HAVE TO GET PAY SOMEWHERE FOR EACH OF THESE UNITS TO KEEP UP.

- FOR MARY KUNIC, IT WAS IMPORTANT TO SHARE HER STORY ABOUT FACING HER FORECLOSURE.

SHE SAYS SHE WANTS HER NEIGHBORS TO KNOW JUST HOW BAD IT CAN GET.

- ISOLATION AND SHAME DON'T SOLVE PROBLEMS.

AND...

I WANT TO HELP BE PART OF THE SOLUTION SO THAT OTHER PEOPLE DON'T END UP THREE DAYS AWAY FROM LOSING THEIR HOME.

(MUSIC PLAYING) - WE'VE READ THE STORIES.

I HAVE FOLLOWED ALL OF THEM THAT HAVE BEEN REPORTED ON, AND IT'S NOT RIGHT.

- IN APRIL, COLORADO LAWMAKERS DEBATED NEW RESTRICTIONS ON HOAS, LIMITING THEIR ABILITY TO FINE HOMEOWNERS AND TO FORECLOSE.

- AS LAWMAKERS, WE KNOW THAT HOAS ARE CURRENTLY UNCHECKED, UNREGULATED.

- REPRESENTATIVE NAQUETTA RICKS PROPOSED HOUSE BILL 1137.

AND AS LAWMAKERS WERE CONSIDERING THE PROPOSAL, JOURNALISTS WERE IN GREEN VALLEY RANCH.

THEY REPORTED ON DOZENS OF FORECLOSURE CASES FILED BY THE MASTER HOMEOWNERS ASSOCIATION FOR GREEN VALLEY RANCH IN 2021 OVER UNPAID FINES.

- DON'T THINK YOU'RE THE ONLY ONES THAT ARE IN THIS FIGHT AGAINST HOAS.

- A TOWN HALL MEETING ON THE MATTER WITH STANDING ROOM ONLY.

AN ATTORNEY FOR THE ASSOCIATION TOLD US THE FORECLOSURES INVOLVE LONG-STANDING DISPUTES.

AND SAID THAT HOA HAS WORKED WITH HOMEOWNERS TO WAIVE SOME OF THEIR FINES IF THEY FIX THEIR VIOLATIONS.

STILL, THE GREEN VALLEY RANCH CASES AND OTHER TESTIMONY FROM HOMEOWNERS MOTIVATED LAWMAKERS.

- WE WANT TO KEEP PEOPLE IN THE HOMES.

- REPRESENTATIVE RICKS INITIALLY PROPOSED THE LEGISLATION BEFORE ALL OF THESE STORIES BROKE AFTER HEARING COMPLAINTS FROM HOMEOWNERS LIKE DOUG MARSH.

- MY INTEREST IN HOA ADVOCACY STEMS NOT ONLY FROM THE FACT THAT I'M A HOMEOWNER BUT ALSO FROM EXPERIENCES THAT I'VE HAD.

WE HAVE TWO HOAS THAT WE'RE MEMBERS OF.

THERE'S A MASTER ASSOCIATION THAT COVERS A BROADER AREA.

AND THERE'S ALSO A SUB-ASSOCIATION.

SOMETHING WENT WRONG.

THE MASTER ASSOCIATION WAS GETTING PAID.

THE SUB-ASSOCIATION WAS NOT GETTING PAID.

- THE SUB-ASSOCIATION FILED TO FORECLOSE.

- YOU DO A COST-BENEFIT ANALYSIS, AND YOU SAY, "WHAT IS THE BENEFIT OF CONTINUING TO FIGHT THIS?"

THE MORE I FIGHT, THE MORE TIME THE ATTORNEY SPENDS ON IT, AND THE MORE THOSE LEGAL FEES KEEP CLIMBING AND CLIMBING AND CLIMBING.

THE ONLY THING TO DO AT THIS POINT IS WRITE THE CHECK, GET OUT OF THERE.

I'M AN ATTORNEY, I DO WELL ENOUGH WITH MY JOB.

AND I COULD AFFORD TO WRITE THAT CHECK.

I'VE COME TO FIND SO MANY PEOPLE THAT CAN'T AFFORD TO DO THAT.

- DOUG AND OTHER ADVOCATES WORKED WITH REPRESENTATIVE RICKS TO CRAFT THE LEGISLATION.

IT PASSED IN MAY AND TOOK EFFECT IN AUGUST.

- I DON'T LOVE THE LAW, PER SE.

I THINK IT CREATES SOME ADMINISTRATIVE BURDENS.

BUT I THINK THAT THERE WERE CERTAIN BAD ACTORS, BAD BOARDS, PERHAPS, AGGRESSIVE ATTORNEYS, PEOPLE EITHER BEING OR FEELING THAT THEY WERE BEING ABUSED BY THE SYSTEM, THAT CREATED, I THINK, A PERFECT ATMOSPHERE FOR THE LAW TO COME INTO EFFECT.

- THE HOPE IS, YOU ENCOURAGE SOME PROPORTIONALITY SO PEOPLE AREN'T RUSHING OFF TO THE COURT.

- THANK YOU, COUNSEL.

- WE COVER SMALL-DOLLAR ISSUES, $100, $200, THE KINDS OF THINGS THAT YOU WOULD WANT RESOLVED BY SOMEBODY PICKING UP THE PHONE, CALLING YOUR NEIGHBOR.

- THE BILL CHANGED THE LAW IN A NUMBER OF WAYS.

IN ONE PART, IT SAYS HOAS CAN'T FORECLOSE SIMPLY FOR UNPAID FINES OR THE COST OF COLLECTING THEM.

AND IT LIMITS THOSE FINES TO $500 PER OFFENSE.

- FIRST, IT WAS BECAUSE THE GRASS WAS DRY.

- THOSE LIMITS CAME TOO LATE FOR SOME.

- MY NAME IS ALEJANDRA BORUNDA TORRES.

- COURT RECORDS SHOW ALEJANDRA'S FORMER HOA FINED HER $25 PER DAY FOR HER YARD FOR MONTHS AT A TIME IN THE DOVER COMMUNITY IN AURORA.

SHE ALSO MISSED SOME ASSESSMENT PAYMENTS.

BUT THE MAJORITY OF HER DEBT TO THE HOA CAME FROM FINES AND LEGAL FEES.

- I WAS LIKE, "I'M NOT PAYING THIS.

THIS IS RIDICULOUS."

- ALEJANDRA AND HER THREE KIDS HAD TO MOVE AFTER THEIR HOME SOLD AT AN HOA FORECLOSURE AUCTION LAST YEAR.

THE MORTGAGE LENDER HAD ALSO SOUGHT TO FORECLOSE.

BUT DURING A TIME WHEN MANY BANKS WERE SUBJECT TO A FORECLOSURE MORATORIUM DUE TO COVID, HOAS WERE NOT.

- THAT WAS OUR HOME.

- WE REALLY DO TRY TO AVOID THAT STEP, JUST THE WHOLE PROCESS OF THE FORECLOSURE.

I DON'T WANT TO DO THAT TO ANYBODY.

I REALLY DON'T.

- GREG LEIKAM IS PART OF THE HOA BOARD WHERE ALEJANDRA LIVED, ALTHOUGH HE SAID HE WAS TALKING TO US AS A NEIGHBOR, NOT AS A SPOKESPERSON FOR THE BOARD.

HE SAID FINES AND FORECLOSURES ARE A WAY TO GET HOMEOWNERS TO PAY ATTENTION TO ISSUES THEY MIGHT OTHERWISE IGNORE.

- IT FINALLY GETS THE HOMEOWNER'S ATTENTION THAT, "OH, THEY'RE SERIOUS."

YEAH, HELLO.

DO YOU THINK THE COURTESY LETTER AND THE TWO VIOLATION LETTERS AND THE INVITE TO A HEARING WEREN'T SERIOUS?

BUT SOME PEOPLE DON'T GET IT.

THEY SIGNED A CONTRACT WHEN THEY BOUGHT THE HOUSE TO MAINTAIN THAT PROPERTY.

I REALLY CAN'T IGNORE THAT BECAUSE THEN WE RISK BEING SUED.

- NOW, BEFORE AN ASSOCIATION CAN FORECLOSE, IT HAS TO OFFER DELINQUENT HOMEOWNERS AN 18-MONTH PAYMENT PLAN.

THE PRIOR REQUIREMENT WAS SIX MONTHS.

AND THE NEW LAW SAYS ASSOCIATIONS MUST NOTIFY HOMEOWNERS OF DELINQUENCIES USING THREE DISTINCT METHODS OF COMMUNICATION, INCLUDING CERTIFIED MAIL AND PUTTING A NOTICE ON THE HOME, BEFORE THEY CAN FORECLOSE.

- I THINK THAT IS A BIG THING THAT'LL HELP PEOPLE, THE WAY THAT THEY HAVE TO REACH OUT TO PEOPLE AND CONTACT THEM MULTIPLE WAYS.

IT'S HARD TO IGNORE SOMETHING ON YOUR DOOR.

IF I WALKED UP AND SAW SOMETHING ON MY DOOR THAT SAYS, "YOU NEED TO TAKE ACTION, OR THIS IS GOING TO HAPPEN, " I DEFINITELY WOULD HAVE MOVED ON THAT.

THAT WOULD HAVE GIVEN ME THE OPPORTUNITY TO AT LEAST EITHER BORROW FROM A RELATIVE, SOMETHING TO GET ME OUT OF THAT TYPE OF SITUATION.

I KNOW IF I HAD THE OPPORTUNITY TO SET UP A PAYMENT PLAN THAT WAS MORE REASONABLE FOR ME, I PROBABLY WOULDN'T HAVE SPENT AS MUCH AS I HAVE IN FEES AND COURT FEES AND LEGAL FEES.

- I LIKE THE IDEA OF HAVING MORE TRANSPARENCY AND MORE NOTICE AND MORE PROCESS FOR THE OWNER.

THE QUESTION IS, I THINK, AT WHAT COST SHOULD THAT COME?

- MANY HOAS HAD TO PAY THEIR ATTORNEYS TO UPDATE THEIR POLICIES TO COMPLY WITH THE NEW LAW.

AND THEY SAY NOTIFICATION REQUIREMENTS MAY COST HOMEOWNERS MORE, AS WELL.

- THEY ALREADY HAVE INFLATION.

NOW WE HAVE TO DEAL WITH THESE ADDED COSTS.

AND THE PROBLEM WITH THAT FROM MY PERSPECTIVE IS, EVERYBODY WHO COMPLIES, UNDERSTANDS THE RULES, APPRECIATES THE RULES, COMPLIES, NOW HAS TO PAY FOR THE FEW WHO DON'T.

THE MORE NEGATIVE ATTITUDE THAT PERMEATES THESE ROLES AND HOW THE LEGISLATURE VIEWS US, AS BAD OR NEED TO BE REGULATED, I'M WORRIED ABOUT GETTING PEOPLE TO VOLUNTEER FOR THESE ROLES.

WE NEED PEOPLE WITH NEW IDEAS.

WE NEED PEOPLE TO RUN FOR THE BOARD.

- I RUN FOR THE BOARD.

I'M NOW ON THE BOARD.

AND AMONG OTHER THINGS, I DO MY LEVEL BEST TO MAKE SURE THAT BEFORE WE DO ANYTHING LIKE GET AN ATTORNEY INVOLVED, AT WHICH POINT COSTS JUST START TO SPIRAL OUT OF CONTROL, WHO'S TALKED TO THIS PERSON?

HAS ANYBODY CALLED THIS PERSON?

DO THEY KNOW THAT THERE'S A PROBLEM?

THOSE EFFORTS WORK.

PEOPLE GENERALLY WANT TO DO THE RIGHT THING.

PEOPLE WANT TO BE GOOD NEIGHBORS.

(MUSIC PLAYING) - THERE'S MORE ON WWW.RMPBS.ORG.

- WE ARE RIGHT AT EIGHT MILES AWAY FROM THE REST OF THE POA.

SO, I'VE ALWAYS LIVED ON THE WRONG SIDE OF THE TRACKS.

I'M ON THE WRONG SIDE OF THE CREEK.

CRESTONE CREEK KIND OF DIVIDES US.

- ONE OF THE STATE'S MOST UNIQUE ASSOCIATIONS GRAPPLES WITH ITS FUTURE.

- I STARTED LOOKING FOR WAYS TO BASICALLY DISSOLVE THE POA.

I JUST BASICALLY STARTED GOOGLING "HOW DO YOU START YOUR OWN TOWN?"

AND...

THERE HAS TO BE SOME KIND OF ACCOUNTABILITY.

AND IN THIS STRUCTURE WE HAVE NOW, THERE'S NO ACCOUNTABILITY TO ANYBODY.

IT'S THE WILD WILD WEST.

- THE BIG BUSINESS OF RUNNING HOAS, SHOULD IT BE REGULATED?

- I THINK THERE SHOULD BE LICENSING FOR PROPERTY MANAGERS.

BUT I ALSO THINK THAT HOAS NEED TO BE MORE PROACTIVE.

IT'S NOT GOING TO BE AS EASY AS IT HAS BEEN.

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