The 2026 Colorado CCIOA & HB 22-1137 HOA Compliance Guide

IntroductionWhy HB 22-1137 changed everything for Colorado HOAs

Colorado's HB 22-1137, effective August 2022, introduced some of the strictest and most procedurally demanding HOA regulations in the United States. Where other states require boards to send notices before enforcement, Colorado requires a specific sequence of dual-channel delivery, mandatory payment plan offers, and language-preference accommodation — and a single procedural error can legally void the entire collection action and expose the board to counterclaims.

The law is built on a simple principle: Colorado believes homeowners at risk of losing their home to HOA foreclosure deserve maximum procedural protection. For self-managed boards, that means the era of informal collections — sending a letter and filing a lien — is over. Every delinquency now triggers a compliance workflow with multiple required steps, each of which must be executed in the right order and with the right delivery method.

Section 01Collections: the 5-step compliance sequence — C.R.S. § 38-33.3-316.3

This is the section most Colorado HOA boards get wrong. The 5-step sequence is not a checklist of best practices — it is a legal prerequisite to enforcement. An association that skips any step has no legal basis to charge collection costs, place a lien, or initiate foreclosure, even if the underlying debt is valid.

The collection policy template — required to enforce any of the above

HB 22-1137 requires associations to adopt a written collection policy consistent with § 38-33.3-316.3 and record it in the county real property records. Without a recorded policy, the association cannot legally assess late fees, place liens, or pursue foreclosure. Use the copy-pasteable template below.

POLICY ON COLLECTION OF UNPAID ASSESSMENTS
[ASSOCIATION NAME] HOA, INC.

WHEREAS, the Board of Directors of [Association Name] (the "Association")
is charged with the administration and operation of the community and
the collection of assessments; and

WHEREAS, Colorado Revised Statutes Section 38-33.3-316.3 requires
associations to adopt a compliant written collection policy detailing
delinquency notifications, payment plan options, and legal escalation;

NOW, THEREFORE, the Board of Directors hereby adopts the following
Collection Policy:

1. DUE DATE & DELINQUENCY. Assessments are due on the [e.g., 1st] day of
   each month. Any assessment not paid in full by the [e.g., 15th] day
   of the month shall be considered delinquent.

2. LATE FEES AND INTEREST.
   a. Late Fee: The Association may assess a late fee not to exceed
      $[e.g., $20.00] per month for any delinquent installment.
   b. Interest: Interest may be charged on delinquent balances at the
      statutory rate of 8% per annum.

3. REQUIRED COMPLIANCE NOTIFICATION (30-DAY NOTICE). Before the
   Association can turn a delinquent account over to an attorney or
   collection agency, it must send the owner a written notice specifying:
   a. The total amount due, with an itemized ledger.
   b. Whether the owner is eligible for an 18-month payment plan.
   c. The name and contact information of the designated point of
      contact for discussing payment options.
   d. That the owner must take action within 30 days to either pay
      the balance in full or enter into a payment plan.

4. DUAL-DELIVERY RULES (as amended by HB 24-1233, eff. August 7, 2024).
   The 30-Day Notice must be delivered by:
   a. Certified mail, return receipt requested; AND
   b. TWO of the following methods using contact information on file:
      (i) Telephone call, (ii) Text message, or (iii) Email.
   Note: Physical door posting is no longer a required or permitted
   secondary delivery method under the amended statute.

5. LANGUAGE PREFERENCES. If the owner has notified the Association of
   a preferred language other than English, all collection notices
   must be sent in English and the owner's preferred language.

6. MANDATORY 18-MONTH PAYMENT PLAN.
   a. Offer: Eligible owners shall be offered a payment plan allowing
      repayment of the delinquency in equal monthly installments over
      a minimum of eighteen (18) months.
   b. Eligibility: An owner is eligible unless they do not reside in
      the unit (investment property) or have previously entered into
      a payment plan under this policy and defaulted.
   c. Default: The owner is in default of the plan if they fail to
      make three (3) or more agreed monthly installment payments when
      due, or if they fail to remain current on regular assessments
      as they come due during the payment plan period.

7. RECORDING. This policy shall be recorded in the Official Real
   Property Records of [County Name] County, Colorado.

Adopted by vote of the Board of Directors on this [Day] day of
[Month], [Year].

By: _______________________________
    [Name of President], President

Attest: ___________________________
    [Name of Secretary], Secretary

[Insert Standard Colorado Notary Acknowledgement Block for Recording]

Recording instructions

1. Board approval — adopt by majority vote during a properly noticed open board meeting; record the vote in the minutes
2. Notarization — the document must be signed by the Association President and Secretary, and both signatures must be notarized
3. County filing — record the original notarized document with the County Clerk and Recorder in the county where the community is located
4. Retain the recorded copy — keep the recorded copy (with instrument number) in the association's official records as proof of compliance

Section 02Fine limits & the 30-day cure window — C.R.S. § 38-33.3-209.5

Colorado HOAs cannot assess fines for covenant violations without following a homeowner-protective enforcement schedule. The $500 fine cap and mandatory 30-day cure window are among the most restrictive in the country — and most self-managed boards are not aware that the cap applies per violation, not permonth.

The fine enforcement rules

• First 30-day warning notice — before levying any fine, the board must send the owner a written notice describing the violation and providing a 30-day period to cure; no fine can attach during this first cure window
• Second 30-day notice before legal action — if the violation remains uncured after the first 30-day period, the board may assess the initial fine, but must send a second 30-day notice before pursuing any legal enforcement action; two consecutive 30-day cure periods are required before the association may initiate legal proceedings
• Owner's right to prove cure — the owner may submit photos or a written statement to demonstrate cure; the board must inspect and confirm before assessing any fine
• $500 cap per violation — for any single covenant violation (parking, landscaping, paint, etc.), the total fine cannot exceed $500; the statute does not specify a fine frequency interval for standard violations — the $500 cap is a per-violation ceiling that resets only when the violation is cured and a new, discrete violation occurs
• Health & safety exception — if the violation poses an immediate threat to public health or safety, the cure period is shortened to 72 hours; if not cured within 72 hours, the board may fine every other day with no dollar cap until the violation is resolved (§ 38-33.3-209.5)

Section 03Open board meeting notices — C.R.S. § 38-33.3-308

Colorado law requires all board meetings to be open to members. While Colorado's notice window is shorter than Texas or California, the right-to-speak requirement and the executive session recording rules are strictly enforced and frequently used as grounds to challenge board decisions.

The meeting notice rules

• Agenda “reasonably available” — § 38-33.3-308 requires the agenda to be made reasonably available before board meetings; no specific hour interval is set by statute for regular board meetings. For electronically-noticed special meetings, notice must be given at least 24 hours before the meeting. Many HOA bylaws specify 48–72 hours — check your governing documents, as the stricter of statute or bylaws controls.
• Right to speak — homeowners have the right to speak on any agenda item before the board votes on it; the board may set reasonable time limits but may not deny the right entirely
• Executive session requirements — executive sessions are permitted for legal, employee/personnel, or contract matters; the board must announce the specific permitted topic and vote to enter executive session during the open meeting, and must record the action in the open meeting minutes
• No action in executive session — final votes and formal board actions must occur in open session; a board that votes in executive session and ratifies in open session without disclosing the subject may face a challenge

Section 04Annual budget & reserve disclosures

Colorado's CCIOA requires associations to prepare and present an annual budget to all owners, subject to a member veto process. The budget approval workflow has two required steps with firm deadlines — and a missed deadline means the board is operating without a properly adopted budget.

The budget approval timeline

• Distribute within 90 days of adoption — the board must mail or deliver a summary of the proposed budget to all owners within 90 days after the board adopts it
• Member veto meeting — schedule within a reasonable time of distribution — the board must hold a member meeting to consider the budget within a reasonable time after distributing the summary; meeting notice must be sent 10–50 days before the meeting date (this 10–50 day window is the meeting notice requirement, not the distribution-to-meeting window); the budget is automatically approved unless a majority of all unit owners (or a higher percentage specified in the governing documents) votes to veto it
• Reserve study — associations must maintain a reserve study and include reserve funding information in the annual budget disclosure; Colorado does not mandate a specific reserve study update interval by statute but best practice (and most governing documents) require a study or update at least every 3–5 years