Colorado HOA Laws and Regulations
Know your association’s laws
Know your association’s laws
Homeowners’ associations in Colorado are legally referred to as Common Interest Communities (CIC). CICs must register with the state as corporations or non-profit corporations and are therefore bound by the Colorado Nonprofit Corporations Act. The Colorado Common Interest Ownership Act (CCIOA) was created to provide more specific rules and regulations regarding HOAs or CICs.
While state and local laws remain consistent between communities, the Declarations of Covenants, Conditions, and Restrictions (CC&R) and community bylaws will differ. It is important to understand all community association rules before purchasing property in a Common Interest Community.
The board of directors of a CIC may create and alter the Declaration of Covenants, Conditions, and Restrictions along with community bylaws. They also have the power to assess fees and dues on homeowners for community upkeep and maintenance of common areas.
If an account becomes delinquent from not paying dues on time, the board of directors may impose liens on the property. If the past-due total on an account is greater than six months of common expense assessments, the board of directors may legally foreclose on the property.
Community managers may be hired by the board of directors for property management. All community managers must be licensed under the Colorado Division of Real Estate to work for a CIC.
It is the responsibility of the board of directors to maintain detailed financial records and file taxes annually and make all information readily available to homeowners. Board members may also ratify and implement budgetary changes without owner approval, however; owners may veto any budget changes at association meetings by a majority vote.
Property owners belonging to a CIC in Colorado get voting power based on the value of their property in the terms of a percentage of the whole. An association member with a property worth $200,000 will get a larger voting percentage compared to an association member with a property valued at $120,000. They will also receive a higher percentage of the cost of maintaining common areas.
Association members may make amendments to the community declaration with a majority vote. Any changes to the declaration CC&R must be filed with the local government in the county(ies) that the community resides. Common Interest Communities may be terminated with a 67% vote from homeowners. In some cases, one association member may own enough property to make up a majority or more of the vote. In such cases, it is legal for the community association to increase the percentage of votes required to make changes to the declaration and terminate the CIC.
Recently, laws have been passed to restrict HOAs from requiring water-dependent landscaping during a drought. Homeowners cannot be penalized for their landscaping if issues are caused by local water restrictions.
The installation of energy efficiency measures, such as solar panels, will not be prohibited by the CIC. According to Colorado law, the board of directors may regulate the placement and size of such installations for aesthetic purposes within reason but cannot prohibit installation entirely.