Responsible governance policies - due process for imposition of fines - procedure for collection of delinquent accounts - enforcement through small claims court - definitions
The CCIOA "responsible governance" statute. Subsection (1) requires every association to maintain accurate accounting records and to adopt nine specific policies: collection of unpaid assessments; conflict of interest; conduct of meetings; covenant and rule enforcement (including notice/hearing and a fine schedule); inspection and copying of records; investment of reserve funds; adoption and amendment of policies; dispute resolution; and reserve study scheduling. Subsection (1.7), added by HB 22-1137 (2022), imposes pre-action contact and notice rules, prohibits daily late fees and daily fines, limits cure procedures, and caps total fines at $500 for a violation that does not threaten public safety or health. Subsection (2) requires a fair and impartial fact-finding process before fines can be imposed. Subsection (5) sets minimum collection policy content. Subsection (7) requires offering an 18-month repayment plan before judicial foreclosure. Subsection (8) caps interest on unpaid assessments at 8% per year, prohibits fees for status statements, and bars foreclosure on fines-only debt. Subsection (9) puts assessment-collection disputes under $7,500 within small-claims jurisdiction. HB 25-1043, effective October 1, 2025, added (1)(a.5), a standing duty to request periodically and keep a telephone number, a cellular number, and an email address for notices. It let regular mail count as one of the two further contacts in (1.7)(a)(I) where the owner or designated contact has not provided a telephone number, cellular number, or email address. It added to the (5)(a)(V) notice of delinquency a warning that the unit may be sold at auction with loss of equity and pointers to free state and federal information, and it set a seven-business-day deadline for a ledger copy requested through the contact the notice names. The act applies to enforcement actions instituted on or after October 1, 2025.
Reviewed · 4 dependent article updates in 12 months · Colorado changes feed
HB 25-1043 (Chapter 433, Session Laws of Colorado 2025) amended Colorado's collection-policy statute, C.R.S. §38-33.3-209.5. An association must now "Request periodically from a unit owner or designated contact, and maintain in the association's records ... a telephone number for phone calls, a cellular number for texts, and an email address for emails". Regular mail now counts toward the two contacts, beyond the certified-mail notice, that an association must make before it refers a delinquency to a collection agency or attorney, "if the unit owner or designated contact has not provided a telephone number, cellular number, or email address as additional means by which to receive notices." The notice of delinquency must now warn of "the sale of the unit owner's unit at auction to pay delinquent assessments, which could result in the unit owner losing some or all of the unit owner's equity in the unit". It must also say how to reach free online information through the state's HOA information and resource center, and the availability of "online information from the federal department of housing and urban development concerning credit counseling before foreclosure that may be accessed through a link on the department of local affairs' website." A ledger copy requested through the contact the notice names "must be provided to the unit owner no later than seven business days after receipt of the unit owner's request". The act applies to enforcement actions instituted on or after October 1, 2025. Effective October 1, 2025.
| Ref | Requirement |
|---|---|
| (1.7)(a) | Before the HOA can act on a delinquency, the board must reach out to the owner by multiple channels: certified mail notice plus two of (phone call, text, email), with regular mail counting as one when the owner has not given a phone number, cell number, or email address. The owner can also designate a contact person and a language preference; the board must honor both. Skipping the contact step is a procedural defense against later collection. |
| (1.7)(b)(I) | Colorado HOAs cannot rack up daily late fees or daily fines. After HB 22-1137, fines follow statutory cure procedures instead of accruing day over day: at most every other day for an uncured violation that threatens public safety or health, and no more than $500 in total for any other violation. |
| (1.7)(b)(III) | For ordinary violations (not threats to public safety/health), the HOA must send certified-mail notice with at least 30 days to cure before any fine. Total fines for that violation are capped at $500. The owner gets two consecutive 30-day cure periods before the HOA can sue. Procedures matter — skip any step and the fine is unenforceable. |
| (1)(a.5) | A Colorado association must ask owners, or their designated contacts, periodically for a phone number, a cell number for texts, and an email address, and keep them on file for notices. The delinquency contacts under §209.5(1.7) and the notice of intent to foreclose under §38-33.3-316(10.8) use these numbers and addresses. |
| (2) | A Colorado HOA cannot fine without (1) a written fine policy, (2) a fact-finding step with notice and an opportunity to be heard, and (3) an impartial decision maker. The decision maker is "impartial" only if they have no direct personal or financial interest in the outcome. |
| (5) | Colorado HOAs may not use collection agencies or sue for unpaid assessments without a written collection policy that hits seven required elements: due dates, fees, bounced-check charges, payment plan terms, pre-collection certified-mail notice (with full itemization and opportunity to dispute), payment allocation, and available legal remedies. Without the policy, collection action is barred. |
| (5)(a)(V) | Since October 1, 2025, a Colorado notice of delinquency must warn the owner that the unit could be sold at auction and that the owner could lose some or all of the equity in it. It must tell the owner where to find free online information on collections and foreclosure from the state HOA information and resource center, and federal credit-counseling information through the Department of Local Affairs website. If the owner asks for a copy of the ledger, it must be provided no later than seven business days after the request is received. |
| (7)(a) | Before foreclosure, the HOA must offer an 18-month repayment plan (minimum $25/month). The owner has 30 days to accept. If accepted, the HOA cannot foreclose unless the owner misses three monthly installments. If the owner rejects (or never responds), the HOA may then proceed — but only after a documented offer. |
| (8) | Three hard prohibitions: interest above 8% is unlawful; no fee can be charged to give an owner a statement of what they owe; and the HOA cannot foreclose on a lien if the only thing it secures is fines (or collection costs/attorney fees tied to fines). Foreclosure must always be based on unpaid assessments, not punitive charges. |
| (9) | For assessment, fine, or fee disputes up to $7,500, either the HOA or the owner can use Colorado small claims court — a faster, cheaper alternative to district court. Interest and costs don't count toward the $7,500 cap. |
| Ref | Requirement |
|---|---|
| (1) | CCIOA imposes a baseline governance regime on every Colorado HOA: keep clean accounting records, and adopt nine specific written policies (collection, conflict of interest, meetings, fines/enforcement, records inspection, reserve fund investment, policy amendment, dispute resolution, and reserve study). Without these policies, the association cannot lawfully fine owners or pursue collections. |
| Ref | Requirement |
|---|---|
| (1)(b)(IX) | CCIOA requires every Colorado HOA to adopt a written policy about its reserve study practices — when studies are commissioned, what funding plan supports the recommendations, and whether the study includes both a physical inspection and a financial projection. The statute does not require that a reserve study actually be done at any particular interval; it only requires the policy. An internally-prepared study counts. |
- Colorado HOA Foreclosure After HB 24-1337 (7) Supporting
- Reserve Study Mandates by State: What the Statutes Say Primary
- Colorado Resale Certificates: What CCIOA Requires (and What It Costs to Skip) (8), (1)(b)(IX) Primary