Arvada, CO HOA Rules: Dispute Resolution (2026)
Key Facts
- Governing section
- LDC § 8-3-8-6
- Trigger
- Applicant's written request only
- Eligible applications
- Filed after October 5, 2015
- Scope
- Construction-defect claims, multi-family areas
- Cost split
- Arbitration costs borne equally
- Buyer protection
- Bold-faced pre-purchase disclosure required
Summary
Arvada lets a developer request an optional plat note on multi-family final plats that routes construction-defect claims involving a common interest community association into binding arbitration instead of court. LDC Section 8-3-8-6 governs the note, available only for applications filed after October 5, 2015, and only if the HOA declaration also requires arbitration.
TO THE EXTENT THAT THE FOLLOWING CLAIMS INVOLVE ANY MULTI-FAMILY DEVELOPMENT AREA (OR THE IMPROVEMENTS THEREON) WITHIN THE PROPERTY COVERED BY THIS PLAT, SUCH CLAIMS SHALL BE SUBMITTED TO BINDING ARBITRATION IN LIEU OF SUBMITTING ANY SUCH CLAIM TO A COURT OF LAW: ANY AND ALL CLAIMS: (1) THAT, REGARDLESS OF THEORY OF LIABILITY, ALLEGE ONE OR MORE CONSTRUCTION DEFECTS; AND (2) THAT ARE BETWEEN ANY TWO OR MORE OF THE FOLLOWING PERSONS OR ENTITIES: (A) ANY OWNER OF ANY PORTION OF THE MULTI-FAMILY DEVELOPMENT AREA, (B) ANY COMMON INTEREST COMMUNITY ASSOCIATION CREATED WITH RESPECT TO THE MULTI-FAMILY DEVELOPMENT AREA, (C) THE SUBDIVIDER, DEVELOPER, CONTRACTOR, OR ANYONE CLAIMING UNDER OR THROUGH ANY SUCH PERSONS...THE FOREGOING SHALL NOT PRECLUDE ANY OF THE PERSONS OR ENTITIES DESCRIBED ABOVE FROM ENDEAVORING TO RESOLVE ANY SUCH CLAIM(S) THROUGH EITHER NEGOTIATION OR MEDIATION BEFORE SUBMITTING SUCH CLAIM(S) TO BINDING ARBITRATION. ... IN SUCH ARBITRATION, THE COSTS AND EXPENSES OF ARBITRATION SHALL BE BORNE EQUALLY BY THE PARTIES.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: City Council Policy Manual: Supplement 1 | Code of Ordinances: Supplement 67).
Full Breakdown
Section 8-3-8-6 lets a developer request that a Major Subdivision Final Plat or Minor Subdivision Plat covering owner-occupied multi-family lots include a recorded plat note diverting construction-defect disputes to binding arbitration. S. 5 et seq. Parties may still try to resolve the claim through negotiation or mediation first. S. Title 13, Article 22, Part 2, or another qualified provider if not, and both sides split the arbitration costs equally. The note is only available for applications filed after October 5, 2015 and only if the applicant certifies that the project's Declaration of Covenants, Conditions, and Restrictions contains, or will contain, a matching binding-arbitration requirement that cannot be amended or deleted without the applicant's consent.
Section 8-3-8-6(B) also requires the developer or builder to give every initial buyer a bold-faced disclosure statement warning that the plat contains a mandatory binding-arbitration restriction before closing.
Violations & Fines
There is no city fine tied to this plat note; it operates as a recorded restrictive covenant rather than a code violation. Once recorded, the note runs with the Multi-Family Development Area and binds all successors, grantees, owners, heirs, and assignees, including the common interest community association, so a party who instead sues in court can be compelled into arbitration under the recorded covenant and Colorado's Uniform Arbitration Act.
Frequently Asked Questions
Does Arvada require HOA construction-defect disputes to go to arbitration?
Who pays for the arbitration under Arvada's plat note?
Can HOA members still sue instead of arbitrate under this Arvada rule?
Sources & Official References
Other rules in Arvada
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