Under the Colorado Common Interest Ownership Act, C.R.S. § 38-33.3-316, an association has a statutory lien for unpaid assessments. After HB22-1137 (2022) it may foreclose only once the lien equals six or more months of assessments and the board formally authorizes the suit by a recorded vote.
C.R.S. § 38-33.3-316(11) lets an association foreclose its assessment lien 'in like manner as a mortgage on real estate,' but only if the balance secured 'equals or exceeds six months of common expense assessments' AND 'the executive board has formally resolved, by a recorded vote, to authorize the filing of a legal action against the specific unit.' That duty cannot be delegated, and a suit filed without the recorded vote 'must be dismissed.' Section 38-33.3-316.3 requires a good-faith payment plan letting the owner cure over at least eighteen months; an owner in compliance cannot be foreclosed. Payments apply first to assessments, then to fines and fees. The lien expires six years after the amount becomes due.
No specific statutory penalty on the owner beyond the debt: late fees, interest capped at 8% per year, reasonable collection costs, and attorney fees, plus judicial foreclosure once the lien reaches six months of assessments and the board votes to authorize suit.
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