C.R.S. § 38-33.3-302 lets a Colorado association enforce covenants and 'levy reasonable fines' only 'after notice and an opportunity to be heard.' Architectural and landscaping decisions 'shall not be made arbitrarily or capriciously,' and every association must adopt a written covenant-and-rules enforcement policy under § 38-33.3-209.5.
Under C.R.S. § 38-33.3-302(1)(k), an association may 'after notice and an opportunity to be heard, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations.' Section 302(3)(b) requires that decisions 'concerning the approval or denial of a unit owner's application for architectural or landscaping changes ... be made in accordance with standards and procedures set forth in the declaration or in duly adopted rules ... and shall not be made arbitrarily or capriciously.' Every association must adopt a written policy on 'enforcement of covenants and rules, including notice and hearing procedures and the schedule of fines' (§ 38-33.3-209.5(1)(b)(IV)). The detailed cure-period and notice machinery in § 209.5(1.7) applies to all covenant enforcement, and an owner found not responsible cannot be charged the association's costs or fees.
Enforcement that skips required notice, cure periods, or the impartial hearing is unenforceable, and fines exceeding the $500 cap or imposed daily are barred. Arbitrary or capricious architectural denials violate § 302(3)(b) and can be challenged.
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