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
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.
- Notice of public trustee sale for HOA assessments received
- Board refused to offer the statutory 18-month payment plan
- Fines exceeding $500 per violation imposed in violation of HB 22-1137
- Colo. Rev. Stat. §§ 38-33.3-101 to 38-33.3-402 (CCIOA)
- Colo. Rev. Stat. § 38-33.3-209.5 (HB 22-1137 fines)
- Colo. Rev. Stat. § 38-33.3-316 (lien, super-lien, foreclosure reforms)
- Colo. Rev. Stat. § 38-33.3-317 (records)
- Colo. Rev. Stat. § 38-33.3-123 (attorney's fees)
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.