Colorado HOAs may levy regular and special assessments under CCIOA (CRS 38-33.3-315 and 316) with protections for owners. The 2022 HOA reform law (HB 22-1137) caps late fees at 25 dollars or 5 percent of the overdue amount, requires 30-day notice before assessment lien filing, mandates payment plans for delinquent owners, and restricts foreclosure to assessments of at least 6 months delinquent or 2,500 dollars owed.
Colorado dramatically reformed HOA collection practices in 2022 after widespread concerns about predatory foreclosures for small assessment balances. HB 22-1137 requires HOAs to offer payment plans of at least 18 months before accelerating debt or filing foreclosure, with limited attorney fee recovery. Interest on delinquent assessments is capped at 8 percent annually. Regular annual assessments are set through the budget ratification process where owners can reject budget increases by 50-percent-plus-one vote under CCIOA. Special assessments over specified thresholds require owner approval in most governing documents.
HOAs that violate HB 22-1137 or CCIOA can be challenged in state court with fee-shifting to prevailing owner in many cases. Improper foreclosures may be reversed and HOAs held liable for damages and attorney fees.
See how Colorado Springs's assessment & dues rules stack up against other locations.
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