Denver’s Safety, Housing, Education & Homelessness Committee on Wednesday gave preliminary approval to a bill that would require homeowners associations to notify homeowners of their foreclosure rights.

The bill stemmed from Council President Stacie Gilmore’s district, where at least 50 Green Valley Ranch homes were foreclosed on over unpaid HOA fines.

Most homeowners were not given notice of citations and were unaware they were on their way to foreclosure, Gilmore said.

“We were made aware of one particular HOA in Green Valley Ranch that had in progress a disproportionately large number of foreclosures without the homeowners knowing what their rights and resources were to mitigate that foreclosure,” Gilmore said. “… The majority of the foreclosures that were initiated were for small violations such as weeds in the rocks, blinds in their front windows, trash cans left at the curb and not behind the fence, basketball hoops left at the curb.”

If the HOA doesn’t address or keep proper documentation of these citations, homeowners can unknowingly accumulate thousands of dollars in fines, Gilmore said. She called on Gov. Jared Polis and Attorney General Phil Weiser to investigate the situation in March and has referred resident phone calls and emails to Weiser’s office since then.

Earlier this month, the state legislature passed HB 22-1137, which adds a variety of protections for homeowners. It requires HOAs to notify residents of any accumulated fines or assessments and attempt to set up a payment plan before initiating a foreclosure. It also sets a limit on late fees and interest and requires HOAs to create a policy to provide information about local foreclosure counseling services.

The Denver bill reorganizes provisions regarding tenant rights and adds a new one regarding HOA notifications. Gilmore said it would prevent anyone from falling through the cracks of the state bill by requiring HOAs to provide written notice of rights and resources at least 30 days before initiating a foreclosure.

“The 30 days is a stop-gap measure,” Gilmore said. “Because the state bill is already so robust and will have already been implemented, the 30 days is set up to catch any homeowner who for any reason falls through the cracks.”

The bill will be up for a first reading at Denver City Council’s June 6 meeting and wouldn’t go into effect until after the state bill does in August.

“I think this is a really creative way with very little legal power as a city to create a real piece of information for people to know their rights,” council member Robin Kniech said. “And that is where any fight to stop any foreclosure going forward will begin, is knowing what your choices are and knowing who can help you.”