Fines, Penalties, and Enforcement Changes in Colorado HOAs in 2026
The following was published by the Colorado Legislative Action Committee (CLAC) on March 23, 2026.
Colorado's HOA covenant enforcement laws have experienced some of the most significant reforms in decades. By 2026, the combined impact of HB22-1137, HB22-1139, HB24-1337, and updated CCIOA provisions have restructured how Associations ("HOAs") may issue fines, impose penalties, and pursue enforcement. The result is a system that is more regulated, more procedurally rigid, and far more protective of homeowners than in prior years. Additionally, with the exception of HOAs created before July 1, 1992 with no more than 10 units and not subject to any developmental rights, the covenant enforcement requirements pertain to all HOAs in Colorado, including pre-CCIOA HOAs.
1. Cure Periods, Caps & Restrictions
Two Mandatory 30-Day Cure Periods:
Colorado law now requires HOAs to provide two separate 30-day cure periods before taking any legal enforcement action for most covenant violations (those that do not threaten the public health or safety).
C.R.S. §38-33.3-316, mandates:
· A first 30-day notice to cure by certified mail
· A second 30-day notice by certified mail if the violation continues
· Matter cannot be transferred to legal until both periods have expired
This has dramatically slowed enforcement timelines and increased administrative burden on HOAs and management companies.
$500 Maximum Fine Cap:
Under C.R.S. §38-33.3-209.5, Colorado caps fines at $500 per violation unless the violation is a violation that threatens the public health or safety. Many HOAs previously issued escalating fines far above this amount, however those practices are now unlawful.
No Foreclosure for Fines Alone:
HB22-1137 prohibits HOAs from foreclosing solely for unpaid fines, even if the fines accumulate into large balances. This has eliminated one of the most impactful enforcement tools previously available to Associations.
2. Attorney Fee Limits & Collection Restrictions
Attorney Fee Caps:
HB24-1337 introduced a major new restriction. Attorney fees related to enforcement are capped at the lesser of 50% of the underlying debt or $5,000. This prevents HOAs from using legal fees as a punitive enforcement mechanism and forces Boards to rethink how they engage counsel for covenant enforcement. This can be detrimental to the community when legal fees accrue due to the communications and filings from the Owner.
Mandatory 18-Month Payment Plans:
Before pursuing collections or foreclosure for assessments, HOAs must offer an 18-month payment plan (previously 6 months) under C.R.S. §38-33.3-316.3. This requirement applies to emergency special assessments for deferred maintenance, and even when the Owner has a history of delinquency (unless the Owner had previously entered into a payment plan), making enforcement slower and more complex.
3. Limits on HOA Authority: Parking, Signs, and Flags
No Regulation of Public-Street Parking & Flag / Sign Content:
Under HB22-1139, HOAs may no longer regulate parking on public streets. This has removed one of the most common enforcement categories and created friction in communities where parking scarcity is a major issue. Such a prohibition on HOAs enforcing parking on public streets only exists in Colorado, Florida, and Arizona.
Another restriction on an HOA's authority was put into law by HB21-1310 and is in regard to regulating signs and flags that Owners may display on their Lot/Unit. Pursuant to C.R.S. §38-33.3-106.5(1), an HOA is not allowed to "prohibit or regulate the display of flags [or signs] on the basis of their subject matter, message, or content," with the exception that commercial messages can be prohibited. This does mean that an Owner can display a sign or flag with a message that people in the community find offensive, and the HOA would have no authority to address such messages. This also means that HOAs cannot restrict signs and flags more generally for aesthetic purposes, such as "no flags allowed but American and military flags" or something similar. That said, HOAs are still allowed to adopt "reasonable, content-neutral rules to regulate the number location, and size" of signs and flags. The HOAs just do not have any oversight of the messages conveyed by those signs and flags.
4. Enforcement Must Align with CCIOA & Nonprofit Law
Colorado HOAs must comply not only with CCIOA but also with the Colorado Revised Nonprofit Corporation Act, which governs:
Board authority
Meeting procedures
Notice requirements
Due process obligations
Boards that fail to follow proper procedure risk invalidating enforcement actions or exposing the Association to legal claims. In addition, condominium associations must also comply with the Colorado Condominium Act, which is often overlooked.
5. Common Enforcement Disputes in 2026
Based on current trends, the most frequent enforcement conflicts involve:
· Architectural modification denials
· Landscaping violations
· Noise complaints
· Pet restrictions
· Rental restrictions
These disputes now require more documentation, more notice, and more procedural rigor than ever before
6. What Should HOAs Do to Stay Compliant in 2026
Update Enforcement Policies:
Policies must reflect:
Two (2) 30-day cure periods
Fine caps
Attorney fee limits
Revise Violation Notice Templates:
Notices must include:
• Statutory citations
• Cure deadlines
• Owner rights
• Required disclosures
Train Boards & Managers
Missteps regarding covenant enforcement issues stem from:
• Boards unaware of new limits
• Managers using outdated templates
• Improper executive sessions
• Failure to document violations
Choose What to Enforce Wisely
Carefully examine whether the length of time and/or cost to continuing to enforce a type of violation is viable under the new laws or whether to amend governing documents or rules to no longer enforce certain items. Some communities have determined to no longer enforce trash cans (a violation which changes weekly under a 30-day notice), instead focusing on more egregious items.
Consult Legal Counsel Early
Given the complexity of HB22-1137 and HB24-1337, legal review is now essential before:
• Issuing fines
• Sending accounts to collections
• Denying architectural requests
• Entering executive session
Conclusion
Colorado's 2026 HOA enforcement environment is defined by strict statutory limits, mandatory cure periods, fine caps, attorney fee restrictions, and expanded Owner protections. These reforms have shifted the balance of power away from HOAs and toward Owners, requiring Associations to adopt more transparent, compliant, and procedurally careful enforcement practices. For Boards and Managers, the message is clear, enforcement is still possible, but only if done by the book.
Gabriel Stefu, Esq.
Gabriel is the founder and a senior attorney for Westernlaw Group. As a community association attorney, he specializes in litigation, transactional work, and collections. Gabriel is also a civil engineer specializing in forestry engineering and environmental protection. Born in Romania, Gabriel has a Master's degree in Environmental Protection and a Bachelor's degree in Civil Engineering from Transylvania University. Gabriel obtained his Juris Doctorate from St. John's University School of Law, New York, in 2001 and, after practicing with other community association law firms, founded Westernlaw Group in 2008. Gabriel is admitted to the Colorado, New York, and New Jersey State Bar Associations.
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