Colorado HOA Rules – Complete 2025 Guide & Laws

Understanding Colorado HOA Laws: What Homeowners Need to Know in 2025

Colorado HOA rules govern how homeowners’ associations operate across the state, affecting thousands of communities and residents. The Colorado Common Interest Ownership Act (CCIOA) serves as the primary legal framework, establishing rights and responsibilities for both associations and homeowners. Whether you’rebuying a home in Coloradoor already living in an HOA community, understanding these regulations protects your investment and keeps community living smooth. This guide summarizes the most important Colorado HOA rules buyers and owners ask us about.

JROC Properties helps clients navigate HOA requirements throughout the buying and selling process, making sure you understand exactly what you’re signing up for before closing.

TL;DR: Colorado HOA Rules – Complete 2025 Guide & Laws

Fines cappedat $500/violation with a 30-day cureand due-process hearing.
Foreclosure safeguards:payment plans first; ability to delay sale and redeemafter auction.
Transparency:most records must be provided within 7 business days; budget summaries mailed.
Solar rights protected;only reasonable aesthetic limits allowed.
Debt collectionmust follow state rules; excessive fees can be contested.
JROCreviews HOA docs, reserves, and rules beforeyou write an offer.

Legal Disclaimer: This guide provides general information about Colorado HOA laws and should not be considered legal advice. Consult with a qualified attorney for guidance on specific HOA situations.

Buying in Colorado? Get the Homebuyer Kit. Timelines, inspections, and HOA due-diligence checklist. Get the Kit.

What Is a Homeowners Association (HOA)?

A homeowners’ association is a governing body formed by property owners in a community to manage shared spaces and enforce community standards. HOAs maintain property values by overseeing architectural consistency, landscaping, and common area upkeep. When you purchase property within an HOA’s jurisdiction, you automatically become a member and must follow the community’s rules. Before you buy, review Colorado HOA rules that apply in your target community so there are no surprises. Together, these statutes form the backbone of Colorado HOA rules for governance, budgets, and owner rights.

Nationally, 82.4% of new homessold in 2023 were part of an HOA, with 53% of U.S. homeowners living in HOA communities. Colorado follows this trend closely.Nearly half of all Colorado residentsnow live under an HOA as of 2023. TheColorado Division of Real Estate’s HOA Information & Resource Centertracks registration data for common interest communities statewide, providing oversight and resources for homeowners.

Understanding your HOA’s structure before buying helps you make informed decisions. JROC Properties reviews HOA documents with clients during the home search, flagging potential concerns about fees, restrictions, or management practices.

Colorado HOA Rules & Legal Framework

Colorado Common Interest Ownership Act (CCIOA)

CCIOAserves as the primary statute regulating HOAs in Colorado, addressing creation, management, powers, member rights, and responsibilities. This comprehensive framework governs the formation process (filing a declaration), governance standards, financial management, record retention, transparency, and dispute resolution. Together, these statutes form the backbone of colorado hoa rules for governance, budgets, and owner rights. In practice, CCIOA is the starting point for understanding modern colorado hoa rules.

The act applies to communities formed after July 1, 1992, though certain provisions extend to older HOAs. CCIOA establishes mandatory written policies covering collections, conflicts of interest, conduct of meetings, enforcement of covenants and rules, records inspection and copying, investment of reserves, adoption of policies, disputes between associations and unit owners, and reserve studies with funding plans. Taken together, these statutes form the backbone of Colorado HOA rules for governance and owner rights.

These requirements help lawful management and continuity across Colorado’s diverse HOA landscape.

Colorado Nonprofit Corporation Act

Most Colorado HOAs organize as nonprofit corporations, making them subject to the Colorado Nonprofit Corporation Act. This statute governs organizational structure, corporate status, board duties, and procedural requirements for nonprofit entities.

HOAs must maintain corporate filings with the Colorado Secretary of State and operate according to statutory nonprofit governance standards. This framework creates accountability and provides legal recourse when associations fail to meet their obligations. Board duties and meeting procedures under this act directly shape day-to-day Colorado HOA rules.

Colorado Fair Housing Act

This act prohibits HOAs from discriminating against residents or prospective residents based on race, color, religion, disability, familial status, sexual orientation, national origin, marital status, or creed. It means HOA covenants, rules, and enforcement practices must comply with state fair housing requirements.

The law provides legal recourse for individuals experiencing discrimination and requires HOAs to make reasonable accommodations for disabled residents.

Colorado Fair Debt Collection Practices Act

HOAs engaging in debt collection for unpaid assessments must follow the Colorado Fair Debt Collection Practices Act. This safeguards homeowners against unfair, deceptive, or abusive collection practices.

Violations may prompt complaints to the Colorado Attorney General or legal action. HOAs must use fair and lawful methods when pursuing debts from members, including proper notice and reasonable payment options.

HOA Governing Documents and Structure in Colorado

Declaration of Covenants, Conditions & Restrictions (CC&Rs)

The Declaration of Covenants serves as the foundational document establishing your HOA’s existence and outlining the essential governance framework. This recorded document creates the legal relationship between property owners and the association, defining property rights, usage restrictions, and maintenance obligations. Understanding Colorado HOA rules starts with your community’s recorded declaration and bylaws.

Colorado law places the Declaration at the top of the document hierarchy, meaning it takes precedence over other governing documents. Because declarations control, many Colorado HOA rules you’ll live by are set here. CC&Rs typically address architectural standards, landscaping requirements, noise restrictions, pet policies, rental limitations, and use of common areas.

These restrictions run with the land, binding all current and future owners automatically upon purchase.

HOA Bylaws and Articles of Incorporation

Bylaws detail operational procedures for your HOA, including the election process for board members, meeting protocols, and board powers. The Articles of Incorporation legally establish the HOA as a corporation with distinct legal identity separate from its members.

Together, these documents outline how your board operates, conducts elections, holds meetings, and makes decisions affecting the community. Directors must be individuals with no other specific requirements unless additional qualifications appear in the bylaws.

Director terms default to one year unless bylaws specify otherwise, making clear term definitions crucial for associations.

Rules and Regulations

HOAs adopt additional guidelines addressing specific community issues beyond the CC&Rs. These rules cover day-to-day operations like parking enforcement, pool hours, noise restrictions, and architectural approval processes. Clear, published policies are required before parking enforcement under Colorado HOA rules.

While less formal than CC&Rs, rules and regulations must align with the Declaration and bylaws. Colorado law requires HOAs to maintain clear policies on adoption and enforcement of these rules, making sure homeowners receive proper notice and opportunity to challenge unfair regulations.

Board of Directors Structure and Authority

Election Process and Terms

Your HOA board makes critical decisions regarding community management, from budget approval to rule enforcement. Elections typically occur annually, with procedures defined in your bylaws to keep democratic processes intact.

Unit owners can remove any board member by a sixty-seven percent vote of all persons present and entitled to vote at any meeting where quorum exists, regardless of cause. This protection keeps boards accountable to the community they serve.

Meeting Requirements and Procedures

Colorado law mandates regular board meetings to facilitate communication between the board and homeowners. Meetings may be conducted by telecommunication if all participants can hear each other, with all such participants deemed present.

Proper notice must state the time, place, and agenda items, including any proposed amendments to governing documents, budget changes, and proposals to remove officers or board members. This transparency requirement prevents surprise decisions and lets homeowners participate in significant community matters.

Voting Rights and Quorum Rules

Board quorum consists of a majority of directors serving immediately before the meeting begins, not the total number of directors required on the board. For budget approval, HOAs must mail a summary to all owners within 90 days of board adoption, followed by a meeting where owners can veto the budget.

These requirements keep democratic governance while providing flexibility for associations to operate effectively.

Homeowner Rights and Responsibilities Under Colorado Law

Property Rights and Usage Restrictions

You own your individual unit or home and share ownership of common elements like clubhouses, pools, and landscaping. Upon purchase, you automatically become an HOA member with rights to attend meetings, vote on community matters, serve on the board, and participate in decisions affecting your community.

However, your property rights come with restrictions outlined in your CC&Rs, which may limit exterior paint colors, landscaping choices, parking options, and property modifications. Whenconsidering the pros and cons of buying a condoor other HOA property, review these restrictions carefully to make sure they align with your lifestyle preferences. JROC flags Colorado HOA rules that commonly conflict with buyers’ plans, parking, pets, rentals, and ADUs. Fair-housing protections override any conflicting Colorado HOA rules on assistance animals.

Maintenance Obligations

Individual Unit Maintenance

Under CCIOA §38-33.3-307(1), owners are responsible for maintenance, repair, and replacement of their units and everything inside them, unless the HOA’s declaration specifically assigns this duty to the association. This default rule means if governing documents are silent, the obligation falls on you, not the HOA.

You must also allow the HOA reasonable access to your unit when necessary for maintenance of common elements. This balance protects both your privacy and the association’s ability to maintain the property.

Common Area Maintenance

Your HOA is responsible for maintaining, repairing, and replacing all common elements (general and limited), unless the declaration shifts this responsibility to unit owners. Common elements include lobbies, elevators, swimming pools, fitness centers, and landscaping.

Limited common elements like balconies or patios assigned to specific units also fall under HOA maintenance unless otherwise specified. The association must obtain and maintain adequate property and liability insurance covering common elements.

Access to HOA Records and Transparency Requirements

Under Colorado HOA rules, most records must be provided within seven business days upon request. As of 2025, HOAs must provide a ledger showing amounts owed within seven business days upon request. Records timelines are among the most practical Colorado HOA rules for due diligence before you buy. Early access to docs lets buyers spot Colorado HOA rules that conflict with their plans before going under contract.

Updated transparency requirements mandate that most records be provided electronically within seven days of request, improving accountability and enabling timely dispute review. This access lets you monitor your association’s financial health and decision-making processes.

Solar Rights and Energy Efficiency Protections

Colorado law protects your right to install solar panels and implement energy-efficient measures on your property. HOAs cannot prohibit solar energy devices or certain energy efficiency improvements, though reasonable restrictions on placement and aesthetic impact are allowed, provided they don’t significantly increase cost or decrease efficiency. Reasonable aesthetic limits are allowed, but Colorado HOA rules protect the right to install solar.

A 2025 case demonstrates these protections in action. A homeowner in the Denver metro area sought to install rooftop solar panels, but the HOA attempted to deny the application based on aesthetic concerns.Leveraging the expanded protections in Colorado’s C.R.S. § 38-33.3-106.5, which prohibits HOAs from blocking reasonable solar installations, the homeowner prevailed in mediation. The HOA amended its guidelines to align with state law, and the solar project proceeded.

This reflects Colorado’s commitment to sustainability and energy conservation.

Language Access Rights for Non-English Speakers

Recent legislative changes require HOAs to take reasonable steps making important documents and communications accessible to homeowners with limited English proficiency. TheColorado Division of Real Estate and HOA Information & Resource Centerprovide guidance and translated materials supporting non-English speakers, making sure all homeowners can participate fully in community governance.

Colorado HOA Financial Management Rules

Assessment Collection and Payment Requirements

Regular Assessments vs. Special Assessments

Your HOA collects regular assessments (monthly, quarterly, or annually) to fund ongoing maintenance, insurance, management, and operations. These assessments cover routine expenses outlined in the annual budget.

Special assessments may be levied for unexpected expenses or major projects like roof replacement, parking lot resurfacing, or emergency repairs not covered by reserve funds. Colorado law doesn’t set a dollar cap on assessment increases, but HOAs must follow their governing documents when raising assessments.

Sudden special assessments and significant increases are often restricted by your community’s own bylaws or covenants. Statutory notice and transparency provisions apply; large assessment increases cannot be imposed arbitrarily and can be challenged if they contradict governing documents. Transparent notices and owner votes, where required. are not optional under Colorado HOA rules.

Payment Plans and Financial Hardship Options

Before starting foreclosure proceedings, HOAs must offer a monthly payment plan with minimum $25 monthly payments. This requirement applies to all homeowners except those who have defaulted on three or more previous payment plans.

These protections recognize that temporary financial hardships shouldn’t immediately result in foreclosure and loss of your home.According to Rep. Iman Jodeh, D-Aurora, a bill sponsor: “Our new laws will encourage metro districts and homeowners to work together to settle disputes to avoid unnecessary foreclosures and make sure that Coloradans won’t be on the hook for paying exorbitant attorneys fees racked up by HOAs.” Mandatory payment-plan offers are now explicit in updated Colorado HOA rules.

HOA Budget and Reserve Fund Requirements

Your HOA must prepare an annual budget outlining projected income and expenses, including contributions to reserve funds for future repairs and maintenance. Colorado HOA reserve fund requirements vary based on community size and age, but associations must conduct reserve studies and maintain adequate funding for anticipated major repairs and replacements. Timely delivery of these disclosures is mandated by Colorado HOA rules.

The budget approval process requires mailing a summary to all owners within 90 days of board adoption, followed by a meeting where owners can vote to reject the budget. This transparency lets homeowners understand how their assessment dollars are spent.

Late Fees and Interest Charges

Colorado law doesn’t set a specific dollar cap or statutory percentage limit on late fees or interest charges HOAs may impose on delinquent assessments, but these charges must be “reasonable.” Many Colorado HOAs charge a flat late fee of $25–$50 per month, with interest on unpaid assessments at rates up to 8–18% annually. These Colorado HOA rules require charges to be reasonable and documented in written policy.

Fees and interest must be documented in written policy and consistently enforced to avoid findings of waiver. Excessive or arbitrary charges can be challenged through the dispute resolution process.

Financial Disclosure Requirements

HOAs must maintain transparent financial practices, providing homeowners with regular financial statements, audit reports, and budget updates. These disclosures foster trust and accountability, allowing you to monitor your association’s financial health and keep responsible management of your assessment contributions.

Real-World HOA Disputes: Recent Colorado Cases

Colorado homeowners have increasingly challenged HOA overreach in recent years, resulting in significant legal precedents and legislative reforms. Understanding these real-world cases helps illustrate how Colorado’s HOA laws apply in practice and the protections available to homeowners.

Property Rights Dispute: Crystal v. Frisco HOA

Homeowner Holly Crystal engaged in a multi-year legal battle with her Frisco HOA afterthe board attempted to reclassify her private backyardas common property by placing an easement, despite plat maps confirming it as a private lot. To retain her property rights, Crystal sued the HOA, eventually securing her private yard after incurring substantial legal fees.

The dispute became a rallying examplefor reforms and underscored strengthened property rights protections in Colorado following public advocacy and legislative attention. Cases like Crystal’s demonstrate the importance of thoroughly reviewing property boundaries and HOA claims before accepting assertions about common versus private property.

Fine Enforcement: High Country HOA Excessive Penalties

Homeowners in a High Country development faced escalating and disproportionate fines for relatively minor rule violations. One homeowner challenged repeat fine accruals, arguing penalties far exceeded the cost to remedy violations and lacked clear notice or cure periods.

Under Colorado’s 2025 legislative updates, which require reasonable fines and a 30-day notice to cure any alleged violation, the HOA was compelled to reduce penalties and revise its enforcement policies. Response timing and fee limits for copies are spelled out in Colorado HOA rules. The homeowner’s successful challenge demonstrated the effectiveness of the new statutory caps and notice requirements, protecting against abusive fine practices.

Architectural Approval: Solar Panel Victory

The Denver metro solar panel case discussed earlier represents a growing category of disputes involving renewable energy rights. HOAs increasingly face challenges when attempting to restrict solar installations based solely on aesthetic concerns, particularly as Colorado strengthens environmental protections and renewable energy access.

These three cases illustrate key homeowner victories and the practical impact of Colorado’s recent legislative reforms, especially regarding transparency, fair penalty enforcement, and the protection of renewable energy rights.

HOA Liens and Foreclosure Laws in Colorado

How HOA Liens Work in Colorado

What Charges Can Be Included in a Lien

Your HOA can place a lien on your property for unpaid assessments, transfer fees, insurance deductibles, fines, late charges, attorney fees, interest, and other fees specified in the recorded declaration. Once assessments remain unpaid, the HOA may record a lien against your property, which appears in public records and can affect your ability to sell or refinance.

Statement of Assessments Due Process

The HOA must provide a written statement of amounts due within 14 days upon request. This statement is binding on both the HOA and unit owners, creating accountability for accurate record-keeping.

As of 2025, this timeline has been shortened to seven business days for ledger requests, making sure you can quickly verify amounts owed and dispute any inaccuracies.

Debt Collection Policy Requirements

Your HOA must maintain written debt collection policies complying with the Colorado Fair Debt Collection Practices Act. Foreclosure proceedings must comply with state lien and foreclosure laws and the HOA’s governing documents.

If noncompliant, courts may pause foreclosure to allow corrections, protecting you from procedural errors. This safeguard makes sure HOAs follow proper legal channels and don’t rush through foreclosure processes.

Notice Requirements Before Legal Action

Pre-foreclosure Notice Timeline

At least 30 days before filing a foreclosure action, your HOA must send detailed notice including the debt amount, statement of your right to request a ledger copy (delivered within 7 business days if requested), warnings about potential foreclosure and loss of equity, and information about free credit counseling resources and the HOA Information and Resource Center.

Right to Cure Period

Within 5 business days of filing foreclosure, the HOA must notify you of your right to cure the debt and your right to request a court-ordered delay (stay) of the auction, which may be granted for up to 9 months for you to sell your home at fair market value, with proceeds held in escrow. During any court-ordered cure or compliance period, the HOA cannot assess interest or late fees.

HOA Foreclosure Process and Limitations

Foreclosure Restrictions and Caps

The foreclosure crisis in Colorado HOA communities prompted significant legislative reforms.Between 2018 and June 2023, Colorado HOAs filed roughly 3,000 foreclosure cases, with about 8% (over 250) resulting in actual property auction. Equity-protection provisions are a major shift in Colorado HOA rules for 2024–2025.

More than 100 HOA-foreclosed homeswere sold at auction for $60,000 or less in Colorado since 2018, erasing years of homeowner equity. The most egregious example involveda 3-bedroom Aurora condoforeclosed and auctioned for just $5,000 (owed: $4,889), then resold months later for $420,000 on the open market.

These cases prompted House Bill 1337, which took effect in August 2024.As Rep. Jennifer Bacon, D-Denver(Assistant Majority Leader and bill sponsor) explained: “Colorado HOA homeowners, especially in my district, have had their largest asset taken from them and sold at an auction for a fraction of its worth over sometimes very small amounts owed to the HOA… With this law going into effect, we’re helping hardworking Coloradans from being senselessly displaced and making sure that homeowners can recover some equity from the house they paid for.”

The law now requires HOAs to first file a lawsuit to collect debt, caps attorney fees, and gives homeowners a second chance to recover their property after foreclosure auction.

Mediation Requirements

You have the right to request mediation before foreclosure proceedings, providing opportunity for resolution without resorting to legal action. The Colorado Office of Dispute Resolution operates low-cost mediation services for civil disputes, including those involving HOAs.

Many HOA disputes must attempt mediation before going to court under 2025 Colorado statutes. This requirement reduces costs for both parties and often results in more satisfactory outcomes than litigation.

Redemption Period Rights

After foreclosure sale, you have a statutory 180-day redemption period to repurchase your property. New statutory redemption rights also exist for specific lienors and tenants, with a 35-day intent-to-redeem filing window, and priority given to you in repurchasing.

Under HB25-1043 (effective October 1, 2025), you can file a court motion to delay the sale for up to nine months, allowing time to sell your home at market value and recover equity.Senate President Pro Tempore James Coleman, D-Denver(bill sponsor) noted: “These new laws will give homeowners greater agency and protection from foreclosure to keep more Colorado families housed.”

Lien Priority and Mortgage Interactions

HOA liens generally take priority over other liens, except for certain government charges and previously recorded mortgages. Understanding lien priority proves crucial if you face potential foreclosure, as it determines the order in which creditors are paid from any sale proceeds.

HOAs must also provide advanced notice, detailed account information, and refer you to state foreclosure resources before starting legal action.

Top 3 Homeowner Protections in Colorado HOA Laws

1. Fine Limitations and Due Process
Recent changes strengthened Colorado HOA rules across fines, foreclosure, and transparency.

Maximum $500 per violationwith mandatory 30-day cure period before any fine is imposed
Written notice required explaining the violation and how to correct it
Right to fair and impartial hearing before the board
Fines must be reasonable and proportionate to the underlying offense
Cannot exceed the cost of remedying the violation

2. Foreclosure Equity Protection

Mandatory payment plan offer(minimum $25/month) before foreclosure proceedings
9-month delay optionavailable through court motion to sell at market value
180-day redemption periodafter foreclosure sale to repurchase property
Homeowners retain priority in redemption over third-party purchasers
HOAs liable for first 30 days of wrongful tow costs

3. Transparency and Record Access

Seven-day maximumfor providing requested financial records and ledgers
Access to meeting minutes, budgets, reserve studies, and governing documents
Board meeting attendance rights for all homeowners
Electronic delivery options for faster document access
Annual budget summaries mailed within 90 days of adoption

Enforcement and Compliance in Colorado HOAs

Common HOA Violations and Complaint Patterns

Understanding the most frequent HOA disputes helps homeowners recognize potential issues early. Based on recent Colorado Division of Real Estate reports and legislative investigations, the top complaint categories include:

Foreclosures for Delinquent Paymentsremain the most serious concern.HOAs in Colorado filed roughly 3,000 foreclosure casesbetween 2018 and June 2023, with over 250 homes auctioned off often erasing most or all homeowner equity. Complaints center on how HOAs start foreclosure for relatively small debts, sometimes without sufficient homeowner recourse.

Excessive Fees and Assessmentsgenerate frequent disputes. Many complaints arise from rapidly increasing HOA fees and assessments, often driven by rising insurance and maintenance costs. Some members reported their monthly dues more than doubling in two years. These increases, and how they are calculated or communicated, are common sources of dispute.

Property Rights Violationsthrough covenant enforcement are widespread. Homeowners frequently claim that HOAs apply rules inconsistently, withhold approvals, or overreach in enforcing covenants, sometimes leading to legal battles over modifications or use of property.

Lack of Board Transparency and Accountabilitysurfaces repeatedly. Homeowners report poor communication from boards regarding decisions, finances, and rule changes, as well as a general lack of transparency. There are calls for more government oversight and penalties for board misconduct, as currently most disputes must be resolved through costly litigation.

Collection and Legal Feesalso drive complaints. Disputes often arise over the collection process for late payments and the attorney fees charged by HOAs during collections, with some residents being billed thousands of dollars in addition to their original debt. Recent laws are now capping attorney fees to address this issue.

Colorado HOA Rules on Fines and Penalties

Prohibited Reasons for Fines

Your HOA cannot fine you for actions protected under state law, including installing renewable energy systems like solar panels, displaying political signs during election periods (with reasonable size and placement restrictions), or exercising rights protected under Colorado Fair Housing Act provisions. Fines also cannot discriminate against or disproportionately impact protected groups.

Fine Limitation Rules

HOAs may fine up to $500 per violation of rules or covenants. If multiple distinct violations occur, each is capped at $500.

Before issuing any fine, HOAs must provide written notice and a minimum 30-day cure period, allowing you to correct the issue before any monetary penalty is imposed. This due process requirement prevents arbitrary or excessive penalties and gives homeowners a fair opportunity to comply.

Architectural Review and Approval Process

HOA architectural restrictions and review procedures must be clearly established in your association’s recorded covenants, bylaws, or adopted guidelines. Decisions must be made reasonably and in good faith, not arbitrary or capricious.

All members must be held to the same reasonable standards for approval or denial. Applications must be responded to within a reasonable period and in writing. As of 2025, new rules require quicker timelines for providing required documents and records, usually within seven days of request.

This transparency helps you understand why modifications were approved or denied and keeps consistent application of architectural standards.

Dispute Resolution Procedures

Internal Dispute Resolution

Before taking enforcement action or imposing fines for violations, your HOA must provide written notice and at least a 30-day cure period for you to correct the violation. CCIOA requires HOAs to offer fair internal resolution processes, giving you opportunity to present your case before the board reaches final decisions. Hearing rights and cure periods are fundamental Colorado HOA rules.

Mediation and Arbitration Options

You have the right to pursue alternative dispute resolution (ADR), including mediation and arbitration, before seeking court action. The association’s policies must describe how disputes progress from internal resolution to ADR and, if necessary, to litigation.

The Colorado Office of Dispute Resolution provides low-cost mediation services for HOA disputes, with contact at (720) 625-5946. This option often resolves conflicts faster and less expensively than litigation.

Legal Action as Last Resort

If internal processes and mediation fail to resolve your dispute, you retain the right to pursue legal action. However, courts generally expect parties to exhaust reasonable alternative dispute resolution options before filing lawsuits.

Successful enforcement through courts may allow claims for attorney fees under CCIOA, similar to enforcement of declarations. Whenmoving to Colorado, JROC Properties connects clients with experienced attorneys who specialize in HOA law when disputes arise, making sure you have expert guidance protecting your rights.

Recent Changes to Colorado HOA Laws (2024-2025)

HB24-1051: New Towing Regulations

House Bill 1051, effective August 7, 2024, significantly changed HOA towing practices. HOAs and property owners can no longer authorize towing carriers to automatically or pre-approve nonconsensual tows.

Written, documented permission must be obtained by the towing carrier for each individual tow, and automated or blanket authorizations are explicitly prohibited. Towing carriers are prohibited from patrolling or monitoring properties to enforce parking restrictions on behalf of HOAs.

This means HOAs must conduct their own regular property checks for parking violations, rather than relying on towing companies to identify potential offenders. Property owners (including HOAs) may be required to cover costs of towing, notification, and storage for the first 30 days if the tow is later found wrongful or contested.

HOAs must post prominent, bilingual (English/Spanish) signage at entrances and inside parking areas clearly stating parking restrictions, enforcement times, and authorized towing company contact information. Signs must be at least two square feet, with lettering at least one inch tall, mounted conspicuously without obstruction from view.

Updated Meeting and Transparency Requirements

Starting January 1, 2025, updates to C.R.S. § 38-33.3-317 require HOAs to provide members with electronic access to financial records, meeting minutes, and governing documents within seven days of request. These stricter timelines improve transparency and make sure prompt access to association information, helping you stay informed about your community’s operations and financial health.

Enhanced Homeowner Protection Measures

Updates to C.R.S. § 38-33.3-302 & -106.5, effective January 1, 2025, cap HOA fines, require written notice and at least 30-day cure period before assessing penalties, and prohibit excessive fines exceeding the cost to remedy violations. The laws also prohibit HOA rules that unfairly discriminate or restrict rights to display political or cultural symbols and to install renewable energy systems.

Collection and Foreclosure Process Changes

HB25-1043 (Owner Equity Protection in Homeowners’ Association Foreclosure Sales), effective August 6, 2025, strengthens homeowner protections in foreclosure proceedings. The law requires HOAs to provide advance notice and opportunity for redemption, making sure you have a fair chance to reclaim property after foreclosure sales.

It limits excessive charges and prioritizes homeowners over third-party purchasers during redemption. HB24-1337 (effective August 7, 2024) caps legal fees HOAs can pass on to homeowners during foreclosure processes and establishes statutory right of redemption, giving you first opportunity to buy back your home following foreclosure sale.

These changes address concerns over predatory foreclosure practices that resulted in homeowners losing substantial equity, even over small debts.

HOA Management and Professional Requirements

Management Company Licensing and Certification

Effective July 1, 2025, theColorado Division of Real Estaterequires community association management companies and their designated controlling managers to be licensed under new regulations. Candidates must complete recognized credentials or qualifying education to sit for the licensing examination, which consists of general and Colorado-specific state portions.

All applicants and their controlling managers must undergo fingerprint-based criminal background checks. They must be at least 18 years of age and possess a high school diploma or equivalent.

Licensure in other states revoked or suspended within the last ten years generally disqualifies applicants, unless special conditions are met. Exact continuing education hour requirements will be set by the Division through rulemaking before the effective date.

Insurance and Liability Requirements

Licensed business entities must demonstrate compliance with insurance requirements as specified by the Division director. Communities formed after July 1, 1992, must purchase and maintain property and commercial general liability insurance to the extent reasonably available.

Communities with 30 or more units must obtain fidelity insurance in an amount of at least 2 months’ current assessments plus reserves to protect against fraudulent or dishonest actions by those controlling funds.

Record Keeping and Accounting Standards

CCIOAmandates specific document retention periods, including board and owner meeting minutes permanently, financial statements for the past three years, tax returns for seven years, current written contracts and contracts for work performed within the preceding two years, and ballots and voting records for one year after the related election or vote. Ballot formats, proxies, and electronic voting must follow the adopted Colorado HOA rules. These standards help financial transparency and accountability.

Board Member Training and Education

Ongoing training and education for board members prove essential for effective governance and compliance with current laws and best practices. The Colorado Division of Real Estate provides resources and guidance for board members, helping them understand their duties and responsibilities under CCIOA and related statutes.

Joining, Leaving, and Dissolving Colorado HOAs

How Properties Become Subject to HOA Rules

When purchasing property within an HOA’s jurisdiction, you automatically become a member based on the declaration filed with the county where the property is located. This membership outlines the association’s powers, your property rights, and member responsibilities.

This process is governed byCCIOAformation requirements, which mandate that declarations be properly filed and that buyers adhere to governing documents, including bylaws and rules. Working with experienced real estate professionals like JROC Properties helps you understand HOA obligations before closing, reviewing all governing documents and identifying potential concerns about fees, restrictions, or management practices.

Opting Out of HOA Membership (When Possible)

Generally, once property is part of an HOA, you cannot simply opt out of membership. However, if an HOA is dissolved, you would no longer be subject to its rules.

If property is grandfathered in or exempt due to specific circumstances outlined in governing documents or state law, you might not be required to join or remain part of the HOA. These scenarios are rare and typically require legal analysis to confirm exemption status.

Community Dissolution Process

Dissolving an HOA involves obtaining approval from a majority or supermajority of owners, depending on specific requirements stated in the HOA’s governing documents or CCIOA. The dissolution process must be conducted according to bylaws and applicable state laws, often involving formal vote and potential amendments to governing documents.

This complex process typically requires legal guidance and may involve settling debts, distributing remaining assets, and recording termination documents with the county.

Transfer of Property and HOA Obligations

Sellers are required to disclose information about HOA membership during property transfers, including providing potential buyers with copies of governing documents and any outstanding fees or assessments. This disclosure helps buyers understand financial and regulatory obligations associated with HOA membership.

When properties are sold, new owners inherit all obligations associated with the HOA, keeping continuity in community governance.

Filing Complaints and Seeking Help

Colorado Division of Real Estate HOA Information Office

TheColorado Division of Real Estate HOA Information Officehandles complaints related to homeowners associations but does not have investigative or enforcement authority. Instead, it records complaints to inform annual reports and provides resources to homeowners.

The office published its 2024 Annual Report in April 2025, focusing on registration information including the number of common interest communities in Colorado and the number of Coloradans living in HOA communities.

Filing Formal Complaints

To file a complaint, visit the official Colorado Division of Real Estate website and use their online complaint submission tool under the HOA Information and Resource Center section. Alternatively, complaints can be mailed to Colorado Division of Real Estate, 1560 Broadway, Suite 925, Denver, CO 80202, or sent by email if online submission isn’t possible.

You must specify your association’s name as the respondent; if a community association manager is involved, mention them in complaint details, but the HOA itself should be the main focus. Attach copies of any documents, correspondence, or evidence relevant to your complaint to provide context and support your claims.

Understand the limitations: the office will acknowledge your complaint, record it for statistical and reporting purposes, and provide resources or information to assist in dispute resolution. However, individual complaints will not trigger investigations, enforcement, or corrective action against the HOA by the Division.

All complaints and information submitted may be subject to public disclosure under the Colorado Open Records Act.

When to Consult an Attorney

Consider consulting an attorney when facing disputes involving significant financial consequences, potential foreclosure, discrimination claims, or repeated HOA violations of Colorado law. Attorneys specializing in HOA law can evaluate your situation, explain your rights, and recommend appropriate action.

Successful enforcement through courts may allow claims for attorney fees underCCIOA, making legal action more accessible.

Free and Low-Cost Legal Resources

Colorado homeowners facing HOA disputes have several free or low-cost legal resources available. Colorado Legal Services, the primary statewide nonprofit, offers free or low-cost legal help to qualifying low-income homeowners at (303) 837-1313.

The Colorado Bar Association’s “Find A Lawyer” service and pro bono programs provide directories of attorneys, including those working pro bono or sliding scale fee, at (303) 860-1115. Metro Volunteer Lawyers (MVL), affiliated with the Colorado Bar Association, provides free civil legal help (including HOA issues) to Denver area residents who qualify based on income at (303) 837-1313.

The Colorado Office of Dispute Resolution operates low-cost mediation services for civil disputes, including those involving HOAs, at (720) 625-5946. Bridging Justice Colorado, a nonprofit legal aid directory and referral service, connects homeowners with low-cost attorneys or legal clinics for HOA and housing disputes at support@bridgingjusticeco.org.

Frequently Asked Questions About Colorado HOA Rules

What are the limits on HOA fines in Colorado?

An HOA must have a formal policy for fines providing written notice to homeowners about alleged violations, a clear explanation of what action will cure the violation, and a timeline for a fair and impartial hearing. Fines are capped at $500 per violation, and you must receive at least 30 days to cure the violation before any fine is imposed.

Can an HOA foreclose on my home for unpaid assessments?

Yes, but with significant new protections. Before starting foreclosure, an HOA must offer a monthly payment plan (minimum $25/month) and provide detailed notices about your rights. You can request a court-ordered delay of up to 9 months to sell your home at fair market value, protecting your equity. After foreclosure sale, you have a 180-day redemption period to repurchase your property.

What records can homeowners access from their HOA?

You have the right to request and receive HOA financial records, including any statement on amounts owed, within seven business days. You can also access meeting minutes, budgets, reserve studies, governing documents, and most association records. This transparency helps you stay informed about your community’s financial health and decision-making processes.

How do I dispute an HOA violation or fine?

You must receive written notice of any violation, be told options to cure it, and be offered a hearing before any fine is imposed. Start with your HOA’s internal dispute resolution process, presenting your case to the board. If unresolved, pursue mediation through the Colorado Office of Dispute Resolution. Legal action remains available if other methods fail.

What protections exist for homeowners facing financial hardship?

HOAs must offer payment plans (minimum $25/month) before foreclosure, except for owners who have defaulted on three or more previous payment plans. During any court-ordered cure or compliance period, the HOA cannot assess interest or late fees. You can also request up to a 9-month delay of foreclosure sale to sell your home at market value and recover your equity.

Can an HOA restrict solar panel installation?

Under Colorado law, HOAs cannot prohibit solar energy devices but may impose reasonable aesthetic restrictions, such as on placement or appearance, provided they don’t significantly increase cost or decrease efficiency. This protection reflects Colorado’s commitment to renewable energy and sustainability.

What are my rights during HOA meetings?

You have the right to attend most HOA board meetings and request the results of disciplinary votes relating to your property. Meetings must be conducted with proper notice stating the time, place, and agenda items. You can participate in discussions, raise concerns, and vote on significant community issues affecting your property and quality of life.

How often can an HOA raise assessments?

Colorado law doesn’t set a dollar cap on assessment increases but requires HOAs to follow their governing documents in raising assessments. Sudden special assessments and significant increases are often restricted by your community’s own bylaws or covenants. Statutory notice and transparency provisions apply; large assessment increases cannot be imposed arbitrarily and can be challenged if they contradict governing documents.

Conclusion

Colorado HOA rules create a comprehensive framework balancing community standards with homeowner protections. Recent legislative changes strengthen your rights, particularly regarding foreclosure equity protection, financial transparency, and due process in enforcement actions. Understanding which Colorado HOA rules apply before you go under contract prevents costly surprises.

JROC Properties guides clients through every aspect of HOA home purchases, from reviewing governing documents to understanding assessment obligations and community rules. Our team’s deep knowledge of Colorado real estate makes sure you enter HOA communities with clear expectations and full awareness of your rights and responsibilities.

Whether you’re considering your first HOA purchase or facing disputes with your current association, professional guidance makes all the difference.Contact JROC Properties todayto discuss your real estate goals and learn how we help clients navigate Colorado’s HOA landscape with confidence and clarity. Our commitment to transparency and client education means you’ll never feel caught off guard by HOA requirements or surprised by hidden obligations.