How do I dispute an HOA assessment or fine in Colorado?

Colorado overhauled HOA collections with HB 22-1137 (effective August 2022) and HB 22-1139 (transparency), creating one of the most owner-protective regimes in the country.

1. Governing Statute

All common-interest communities created on/after July 1, 1992: Colorado Common Interest Ownership Act (CCIOA), Colo. Rev. Stat. §§ 38-33.3-101 to 38-33.3-402.

Older condos: Condominium Ownership Act, §§ 38-33-101 to 38-33-113.

HB 22-1137 amendments codified at §§ 38-33.3-209.5, 38-33.3-316, 38-33.3-316.3.

2. CC&Rs and Bylaws

Recorded declaration, plat, bylaws, and rules. Amendments require percentage specified in declaration (at least 67% under CCIOA).

3. Common Disputes

Architectural review, exterior color, fencing, landscape, parking, pets, lease and short-term rental restrictions, assessment increases, fines (HB 22-1137 caps fines at $500 per violation and bars compounding), late fees.

4. Internal Dispute Resolution

Before imposing a fine or sanction, the board must give written notice with required content (alleged violation, action proposed, time and date of hearing) and an opportunity to be heard at a hearing (§ 38-33.3-209.5). The fine cannot accrue while the owner is curing in good faith.

5. Alternative Dispute Resolution

HB 22-1137 requires mandatory mediation or arbitration between the association and an owner before foreclosure (§ 38-33.3-316(11)). The HOA Information and Resource Center within the Colorado Division of Real Estate (§ 12-10-803) accepts complaints and provides educational guidance.

6. Lien & Foreclosure

The association has a statutory lien for unpaid assessments (§ 38-33.3-316). Six months of regular assessments have priority over a first mortgage (Colorado super-lien — § 38-33.3-316(2)). HB 22-1137 imposes strict pre-foreclosure requirements: (a) 18-month payment plan option must be offered; (b) only delinquent assessments — not fines, late fees, or attorney's fees — count toward the foreclosure threshold; (c) board must vote at an open meeting to authorize each foreclosure; (d) mediation is required. Foreclosure is conducted via Public Trustee under Colo. Rev. Stat. § 38-38-101 (nonjudicial trustee sale).

7. Open Meeting & Record Inspection

Board meetings must be open to unit owners with limited executive session for legal, personnel, contract, and discipline matters (§ 38-33.3-308). Owners may inspect financial records, minutes, contracts, the membership list, and ballots (§ 38-33.3-317).

8. Statutory Caps

Solar energy and renewable energy devices cannot be unreasonably restricted (Colo. Rev. Stat. § 38-30-168). Xeriscape and drought-tolerant plants protected (§ 37-60-126). Flag display (§ 38-33.3-106.5). Political signs (§ 38-33.3-106.5). Satellite dishes (federal OTARD). EV charging (§ 38-33.3-106.8 — reasonable accommodation required).

9. Lawsuit Remedies

Declaratory judgment (Colo. R. Civ. P. 57), injunction, breach of fiduciary duty against directors (CCIOA § 38-33.3-303(2)(b) — duty of care and loyalty), derivative actions, and prevailing-party attorney's fees in covenant enforcement (§ 38-33.3-123).

This is legal information, not legal advice.