Colorado Statewide Rule

Colorado HOA Assessments, Liens & Foreclosure (CCIOA)

Heavy RestrictionsApplies statewide across Colorado (2026)

Key Facts

Governing law: C.R.S. § 38-33.3-316 / -316.3 (CCIOA)
Foreclosure threshold: Lien equals 6+ months of assessments
Board action required: Recorded vote authorizing suit; cannot be delegated
Payment plan: Must offer cure over at least 18 months (§ 316.3)
Payment priority: Applied to assessments first, then fines/fees

Last verified: September 5, 2026

Summary

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.

(1) (a) The association, if such association is incorporated or organized as a limited liability company, has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner. Fees, charges, late charges, attorney fees up to the maximum amount authorized under subsection (7) of this section, fines, and interest charged pursuant to section 38-33.3-302 (1)(j), (1)(k), and (1)(l), section 38-33.3-313 (6), and section 38- 33.3-315 (2) may be subject to a statutory lien but are not subject to a foreclosure action under this article 33.3.

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Full Breakdown

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.

Violations & Penalties

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.

Frequently Asked Questions

When can a Colorado HOA foreclose on a home for unpaid dues?

Only when the assessment lien equals or exceeds six months of common expense assessments and the executive board has formally voted, on the record, to authorize a lawsuit against that specific unit (C.R.S. § 38-33.3-316(11)). A suit filed without that recorded vote must be dismissed.

Does Colorado require an HOA to offer a payment plan before foreclosing?

Yes. Under C.R.S. § 38-33.3-316.3, the association must make a good-faith effort to set up a payment plan that lets the owner pay off the deficiency in equal installments over at least eighteen months. An owner who stays current on that plan cannot be foreclosed.

How much interest can a Colorado HOA charge on late assessments?

HB22-1137 caps interest on unpaid assessments, fees, or fines at no more than 8% per year, and daily late fees are prohibited.

Sources

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