In Colorado, many planned communities are managed by a homeowners association (HOA). The laws governing HOAs in Colorado are set forth by various local and state regulations, as well as by each individual HOA’s governing documents.
Who Regulates HOAs in Colorado?
In Colorado, HOAs are regulated by the Colorado Common Interest Ownership Act found in Title 38 Article 33.3. This act governs the formation, management, and powers of housing developments where units are individually owned with common areas and facilities.
HOAs traditionally have documents that regulate themselves. Every HOA is different, however, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restriction, and other rules.
HOAs in Colorado may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- Colorado Uniform Unincorporated Nonprofit Association Act
- Colorado Unfair Housing Practices Act
- Colorado Condominium Ownership Act
- Colorado Corporations Act
How to Find HOA Regulations in Colorado
HOA governing documents are not public records in Colorado. It is up to the HOA whether they will allow non-members to view or inspect its governing documents. Potential purchasers of a property in the HOA may be able to obtain the governing documents through their real estate agent or broker.
A declaration and other supporting documents about the structure of the HOA property are required to be recorded in every county where the HOA holds the property. To obtain these documents, visit the local county clerk’s office.
HOA Powers in Colorado
In Colorado, an HOA has the power to:
- Regulate common areas
- Collect charges to maintain and operate the common areas
- Levy reasonable fines
Also, HOA governing documents can grant more powers such as restrictions on exterior paint colors, fencing, membership, and parking requirements.
Can an HOA Impose Fines on a Homeowner in Colorado?
In Colorado, an HOA can impose fines on a homeowner for the operation of common assessments, charges for late payment of common assessments, and violations of any rules or regulations. Before an HOA can impose fines, the homeowner must be given proper notice and an opportunity to be heard.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Failure to water vegetation or landscape according to the governing documents when restrictions from the local water entity are in place
- Displaying a flag that does not show commercial messages on the homeowner’s property
- Installing flagpoles on the homeowner’s property
- Displaying religious imagery on the entry door or entry door frame
- Removing trees, bushes, or other types of plants for fire mitigation purposes
- Modifying the homeowner’s unit as necessary to accommodate a person with a disability
- Using a rain barrel to collect rain on the roof of the property
- Operating a family child care home
- Installing an energy efficient measure
- Installing electric vehicle charging stations
- Installing satellite dishes and antennas
Reasonable rules and regulations about the placement, manner, and display of any of the items listed above may be included in the HOAs governing documents.
Can an HOA Take a Homeowner’s House in Colorado?
In Colorado, an HOA can foreclose on a home after providing necessary steps and options to the homeowner on how to pay a lien that resulted from late payment of assessments.
Before taking legal action, the HOA must first send a notice of deficiency to the homeowner. Rather than imposing daily fines, the HOA has to provide the homeowner with two 30-day periods to remedy the violation.
Additionally, the HOA is required to offer the homeowner a payment plan in monthly installments that are $25 or greater. If the homeowner accepts the offer and is late or fails to make 3 or more payments, the HOA can file a claim in small claims court.
An HOA can evict a homeowner and tenants for unpaid common assessments. This process is similar to placing a lien on the property for unpaid fees that can result in foreclosure.
Can an HOA Enter a Homeowner’s Property in Colorado?
In Colorado, there is no provision in the law that allows an HOA to enter a homeowner’s property. However, most governing documents contain a provision allowing an HOA to enter the homeowner’s house as reasonably necessary to maintain the units, common elements, or shared utilities.
Units are solely used by the property owners but have certain spaces that require maintenance by the HOA, such as balconies. Common elements are the shared spaces in and around the house that are collectively owned by the HOA, such as a pool. Shared utilities may include water or sewage that are provided directly through the HOA.
Before entering a property, except in the case of an emergency, an HOA should give prior notice to the homeowner. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in Colorado?
The appropriate agency to file a complaint against an HOA depends on the type of complaint.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Colorado Department of Regulatory Agencies, the U.S. Department of Urban Housing, or file a private lawsuit in Colorado state or federal court.
For complaints concerning HOA fees, a homeowner can file a complaint with the Colorado Department of Regulatory Agencies, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
A homeowner can bring all other complaints to state court in the appropriate jurisdiction by filing a claim.
Joining and Leaving an HOA in Colorado
In Colorado, there are two types of HOAs that govern joining and leaving clauses. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the HOA to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA
The dissolution process of an HOA in Colorado may be found in the HOA’s governing documents. If it is not, members of the HOA need to come to a majority vote of at least 67% in favor of dissolution.
If the HOA members secure a majority vote for dissolution, the HOA must file a termination agreement in each county where the HOA is located. The HOA is considered dissolved once recorded with the county.
Sources
- 1 Frequently Asked Questions for HOA Homeowners, Board Members, and Other Interested Parties
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There is no central repository of HOA governing documents in Colorado. Each association is responsible for maintaining records pursuant to sections 38-33.3-317 & 38-33.3-209.4 of the Colorado Common Interest Ownership Act and the Colorado Nonprofit Corporation Act, at Article 136. As a non-member potential purchaser, you will have to ask your real estate broker to ask the listing agent if the seller would be able and willing to provide you with copies of the current governing documents. However, you are not entitled to them until you have signed the Contract to Buy and Sell Real Estate…
Source Link - 2 Colo. Rev. Stat. § 38-33.3-201
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(1) A common interest community may be created pursuant to this article only by recording a declaration executed in the same manner as a deed and, in a cooperative, by conveying the real estate subject to that declaration to the association. The declaration must be recorded in every county in which any portion of the common interest community is located and must be indexed in the grantee’s index in the name of the common interest community and in the name of the association and in the grantor’s index in the name of each person executing the declaration. No common interest community is created until the plat or map for the common interest community is recorded.
Source Link - 3 Colo. Rev. Stat. § 38-33.3-302
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(f) Regulate the use, maintenance, repair, replacement, and modification of common elements; except that, in regulating the use of common elements by unit owners, the association shall comply with section 38-33.3-302.5, including during the maintenance, repair, replacement, or modification of a common element; (g) Cause additional improvements to be made as a part of the common elements… (j) Impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements other than limited common elements… (k) (I) Impose charges for late payment of assessments, recover reasonable attorney fees and other legal costs for collection of assessments and other actions to enforce the power of the association, regardless of whether or not suit was initiated, and, after notice and an opportunity to be heard, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations of the association.
Source Link - 4 Colo. Rev. Stat. § 38-33.3-302
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(II) The association may not levy fines against a unit owner for violations of declarations, bylaws, or rules of the association for failure to adequately water landscapes or vegetation for which the unit owner is responsible when water restrictions or guidelines from the local water district or similar entity are in place and the unit owner is watering in compliance with such restrictions or guidelines. The association may require proof from the unit owner that the unit owner is watering the landscape or vegetation in a manner that is consistent with the maximum watering permitted by the restrictions or guidelines then in effect.
Source Link - 5 Colo. Rev. Stat. § 38-33.3-106.5
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(a) The display of a flag on a unit owner’s property, in a window of the unit, or on a balcony adjoining the unit. The association shall not prohibit or regulate the display of flags on the basis of their subject matter, message, or content; except that the association may prohibit flags bearing commercial messages. The association may adopt reasonable, content-neutral rules to regulate the number, location, and size of flags and flagpoles, but shall not prohibit the installation of a flag or flagpole… (I) The display of a religious item or symbol on the entry door or entry door frame of a unit… (e) The removal by a unit owner of trees, shrubs, or other vegetation to create defensible space around a dwelling for fire mitigation purposes…
Source Link - 6 Colo. Rev. Stat. § 38-33.3-106.7
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(1) (a) Notwithstanding any provision in the declaration, bylaws, or rules and regulations of the association to the contrary, an association shall not effectively prohibit the installation or use of an energy efficiency measure.
Source Link - 7 Colo. Rev. Stat. § 38-33.3-106.8
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(a) The widespread use of plug-in electric vehicles can dramatically improve energy efficiency and air quality for all Coloradans and should be encouraged wherever possible; (b) Most homes in Colorado, including the vast majority of new homes, are in common interest communities; (c) The primary purpose of this section is to ensure that common interest communities provide their residents with at least a meaningful opportunity to take advantage of the availability of plug-in electric vehicles rather than create artificial restrictions on the adoption of this promising technology; and (d) The general assembly encourages common interest communities not only to allow electric vehicle charging stations in accordance with this section, but also to apply for grants from the electric vehicle grant fund, created in section 24-38.5-103, C.R.S., or otherwise fund the installation of charging stations on common property as an amenity for residents and guests.
Source Link - 8 Over-the-Air Reception Devices Rule (OTARD Rule)
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 9 Colo. Rev. Stat. § 38-33.3-316
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(1) (a) The association, if such association is incorporated or organized as a limited liability company, has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner… (b) If an assessment is payable in installments, each installment may be subject to a statutory lien if the unit owner fails to pay the installment within fifteen days after the installment becomes due, but the association may not pursue legal action for unpaid monthly installments until the unit owner has failed to pay at least three monthly installments…
Source Link - 10 HB22-1137 Homeowners' Association Board Accountability And Transparency
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Requires an HOA to first contact the unit owner regarding the delinquency by, in addition to sending a notice of delinquency to the unit owner… to provide the unit owner 2 30-day periods to cure the violation before the HOA may take legal action against the unit owner, which legal action for unpaid fines cannot include foreclosure… Before an HOA may initiate a foreclosure action against a unit owner, requires that the HOA offer the unit owner a repayment plan to pay the debt in monthly installments in an amount determined by the unit owner so long as installments are in amounts of $25 or greater, and the unit owner either declines the offer or, after accepting the offer, fails to make at least 3 monthly payments within 15 days after the installments were due…
Source Link - 11 Colo. Rev. Stat. § 38-33.3-316
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(10) In a cooperative, upon nonpayment of an assessment on a unit, the unit owner may be evicted in the same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and the lien may be foreclosed as provided by this section… (I) The balance of the assessments and charges secured by its lien, as defined in subsection (2) of this section, equals or exceeds six months of common expense assessments based on a periodic budget adopted by the association… (II) The executive board has formally resolved, by a recorded vote, to authorize the filing of a legal action against the specific unit on an individual basis…
Source Link - 12 Colo. Rev. Stat. § 38-33.3-302.5
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(1) In regulating the use of common elements, as permitted by section 38-33.3-302 (1)(f), an association shall preserve and protect unit owners’ ability to use and enjoy common elements and shall not unreasonably restrict or prohibit unit owners’ access to, or enjoyment of, any common element, including during the maintenance, repair, replacement, or modification of a common element.
Source Link - 13 Buying a Home in a HOA
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Potential homebuyers need to consider the cost associated with living in a HOA after purchasing. You should determine what, if any, are the costs of membership in any association you are contemplating purchasing property in. Most mandatory HOAs will have regular membership dues in order to fund the operational costs of the association. In addition to regular assessments, you should review the association documents for meeting minutes for the last year to determine if any special assessments may be under consideration.
Source Link - 14 Can you refuse to join an HOA?
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… membership in voluntary HOAs is optional… If you enter into a voluntary HOA, you can leave whenever you want by stopping your payments, although you’ll stop receiving the benefits of the HOA… When you buy a house in a community governed by a mandatory HOA, you automatically become a dues-owing HOA member. When you become a member, you stay a member for as long as you own the property or until the HOA is dissolved (which is very rare). At your home’s closing, you will have to sign documents agreeing to abide by the HOAs rules and pay any assessments, fees, or fines associated with the HOA or incurred by violating HOA rules…. Unless you can gain enough support in your community to let you leave the HOA voluntarily, you will have to hire an attorney to try to convince a judge that you should be allowed to leave.
Source Link - 15 Colo. Rev. Stat. § 38-33.3-218
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…a common interest community may be terminated only by agreement of unit owners of units to which at least sixty-seven percent of the votes in the association are allocated or any larger percentage the declaration specifies… (1.5) No planned community that is required to exist pursuant to a development or site plan shall be terminated by agreement of unit owners, unless a copy of the termination agreement is sent by certified mail or hand delivered to the governing body of every municipality in which a portion of the planned community is situated or, if the planned community is situated in an unincorporated area, to the board of county commissioners for every county in which a portion of the planned community is situated.
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