The CEDP Protects, Educates and Warns Communities About HOA Tactics

By Chanel Ward

As the cost of living increases across the country and as Colorado faces a housing crisis unlike ever before, certain communities are at the forefront of a battle with homeowners associations (HOA), increasing pressure on already strained communities. With nearly 25% of all Americans belonging to community associations, like that of an HOA, the cost of manicured aesthetics and resident safety is more than just a monthly bill and hefty violation fines, as one family discovered in the worst way possible.

Just 20 minutes east of Denver is the suburb of Green Valley Ranch, known for its spacious and well-manicured, mostly owned homes, is also an HOA community that has recently faced backlash and ongoing controversy after selling the home of one of their own community members for minor violations, to a realtor for just a percentage of the home itself and for a fraction of what the original homeowner had paid for it nearly two decades ago.

Monica Villela, a Green Valley resident has made headlines due to the foreclosure of her home due to an HOA. “I didn’t know the HOA had the power to do that,” an emotional Villela explained that she bought her home for over $180,000 back in 2005 and due to over $7,000 of unpaid fines, for landscaping issues and leaving trash bins near the curb, has now lead to her family’s home being sold to a realtor for just $25,000 and unbeknownst to her.

“I didn’t know the HOA had the power to do that.”
Monica Villela, Green Valley Resident

“I feel that they were targeting us,” the single mother of four expressed. She also explained that she, “never stopped making the mortgage payments.” And while the HOA is unwilling to negotiate, despite Villela paying her monthly mortgages on time, has now found herself and children fighting to get their home back. In response, a community prayer meeting was organized for the Villela family, leading the realtor to agree on allowing her to rent back her home and offered to sell it to her for $28,000. At just $3,000 more than the realtor paid for it from the HOA directly, it is over $21,000 more than the fines were worth. Unfortunately, this was an empty promise, met with a hostile reaction from the realtor when the funds were allocated.

The Community Economic Defense Project (CEDP) stepped in to help in aiding the housing crisis back in 2020, as a response to the pandemic and lack of work available to afford the cost of living. However, the need for continual help is more vital than ever and the CEDP has since grown as a pilar of unsung heroes that continue to help homeowners like Villela. The community raised the money, with the help of the CEDP, but was met with malice from the realtor, who not only reneged on his offer, but vehemently expressed that he didn’t want to be bothered by the CEDP again, leaving Villela in a hopeless situation. “This is really a nightmare and I just want justice,” an emotional, but courageous Villela expressed at a community prayer meeting on September 23.

Colorado HB22-1137 was created last year to modulate such incidents, but the bill has not prevented these practices from continuing through an HOA, forcing the CEDP to take extra measures to ensure client protection. “We were one of the supporters of [HB22] 1137,” said Melissa Mejía, Director of State and Local Policy Manager for the CEDP explained in an interview with El Semanario.

“We worked a little bit with the team on that and have followed it closely since then,” said Mejía, who credited the bill for changes it has made, while also acknowledging that despite those progressions, still has a long way to go. “HB22-1137 started a couple of years ago,” Mejia explained. She also stated that, “people really started paying attention when all of a sudden, so many people were injured, or closed on by the HOA and I think a lot of people didn’t realize that that was even possible.”

“Some people can still lose their homes,” said Mejía, “because the process started before that, there are also still other things that HB22-1137 doesn’t cover.” She further detailed that parts of Green Valley Ranch are covered by an HOA, while other parts are covered by the Metro District. “They are not covered by all of those changes that were passed in HB22-1137, so there are still a lot of loopholes in a lot of ways for HOA’s and Metro Districts to foreclose on people for very small amounts of money,” she said, “even if they’ve continued paying their mortgages.”

She believes in, “making sure that people understand that this is still happening.” And while she agrees that changes still need to be made, Mejía wants to, “make sure that people do know what their rights are, because they have changed and not everyone realizes that some of the things that are happening, are not compliant with that law.”

The CEDP was founded by Zach Neumann and Sam Gilman, initially as The COVID-19 Eviction Defense Project back in April of 2020 in response to the pandemic; protecting Colorado residents from eviction and foreclosure and helping serve more than 31,000 residents with over a $100 million in rental assistance alone. The all-volunteer effort has not only continued to expand their efforts, but has grown into a team of 120 volunteers who are all dedicated to combat the malpractice of HOA’s and the mistreatment of homeowners and renters who are unaware of their power. “Our founders sort of saw this coming,” Mejía described, as being the reason behind the broadening of the already expansive resources and name change.

To learn more about the Community Economic Defense Project, their services, or to donate: visit their website at cedproject.org and you can learn more about HB22-1137 here.

Chanel Ward is an Independent Reporter for The Weekly Issue/El Semanario.