On January 21, 2021, Governor Polis signed Senate Bill 21-002 into law. The Bill effectively extends the prohibitions on creditors from taking extraordinary actions to recover debt, to June 1, 2021, resulting in limits on collection activity. There were no changes to the original Bill (SB 20-211).
In June of last year, SB 20-211 was approved, which limits collection activity, including owner associations, from taking extraordinary actions to recover assessment delinquencies. Specifically, associations are prohibited from garnishing wages, levying bank accounts or otherwise executing on a court judgment. The Act is intended to provide some relief to individuals who have been financially impacted by the COVID-19 virus. This Bill went into effect immediately and was scheduled to sunset on November 1, 2020, but was ultimately extended to February 1, 2021. You can read our initial blog on SB 20-211, and what it means for associations, here.
