First Atlantic Mortgage, LLC v. Sunstone North Homeowners Association, Inc.
First Atlantic Mortgage, LLC v. Sunstone North Homeowners Ass'n, 121 P.3d 254 (Colo. App. 2005)
A Colorado HOA's super-priority assessment lien under C.R.S. §38-33.3-316(2) is capped in amount by reference to six months of regular periodic assessments, but the component charges within the lien may include not only past-due assessments but also late charges, interest, attorney fees, and other allowable expenses enumerated in §316(1). In other words, the six-month measure defines the cap on the priority-elevated amount, while §316(1) defines what categories of charges may be aggregated up to that cap. The court affirmed the trial court's denial of First Atlantic's C.R.C.P. 105.1 quiet-title relief, leaving Sunstone's super-priority lien intact ahead of the recorded deed of trust.
Controlling Colorado authority on the composition and dollar scope of the HOA super-priority lien. Frequently cited by Colorado title and real-estate counsel when calculating what a first mortgagee must pay to clear the super-priority before completing a foreclosure. Read alongside C.R.S. §38-33.3-316.3 (HB 22-1137 reforms) which now restrict the foreclosure-trigger and collection procedure but did not displace First Atlantic's lien-composition holding.