Frequently Asked Quetions

I. Board & Manager: Authority, Compliance, Risk Management

  • Board Authority & Fiduciary Duties

  • Under the Colorado Common Interest Ownership Act (CCIOA) and the Colorado Nonprofit Corporation Act, HOA boards have broad authority to manage association affairs, enforce governing documents, adopt rules, levy assessments, and enter into contracts—subject to statutory limits and the association’s declaration.

  • Board members owe duties of care, loyalty, and good faith to the association. This includes acting in the association’s best interests, exercising reasonable judgment, avoiding conflicts of interest, and complying with governing documents and Colorado law.

  • Board members are fiduciaries responsible for managing the association, enforcing rules, maintaining common areas, collecting assessments, adopting budgets, and acting in homeowners’ best interests under CCIOA and nonprofit law.

  • Rulemaking, Policies & Governance

  • Yes. Most boards may adopt rules and policies without a membership vote if authorized by the declaration and bylaws. However, rules must be reasonable, within the board’s authority, and consistent with CCIOA and existing covenants.

  • Typically, homeowner votes are required for declaration amendments, major structural changes, special assessments if required by the declaration, or removal of directors. Routine governance, enforcement, contracts, budgeting, and policy adoption are usually within board authority unless governing documents state otherwise.

  • Section 38-33.3-209.5, C.R.S., requires associations to adopt written governance policies, including:

    • Collection policy

    • Covenant enforcement policy

    • Conduct of meetings policy

    • Inspection of records policy

    • Conflict of interest policy

    • Investment policy

    • Adoption of rules and policies policy

    • Alternative Dispute Resolution (ADR) policy

    • Reserve study policy

    Some policies have substantive statutory requirements; others are required primarily for transparency and consistency.s here

  • Pre-CCIOA Associations

  • “Pre-CCIOA” refers to associations created before July 1, 1992. While some CCIOA provisions may not automatically apply, many sections still govern these communities unless properly excluded.

  • No. Pre-CCIOA associations are not fully exempt. Certain provisions apply regardless of creation date, including provisions related to liens, records access, governance policies, and board conduct.

  • Yes. Many pre-CCIOA associations adopt CCIOA provisions through declaration amendments to modernize governance and reduce legal uncertainty.

  • Elections, Voting & Meetings

  • Owners generally have the right to vote on elections, amendments, budgets (via veto), and other matters specified in the governing documents. CCIOA and nonprofit law provide protections against improper voting procedures.

  • Yes, if authorized by the governing documents and applied consistently. Any restriction must comply with CCIOA and due-process requirements.s here

  • Yes. Associations may use absentee, mail-in, or electronic ballots if permitted by governing documents and election policies.e

  • Common disputes include improper notice, quorum issues, proxy validity, inconsistent enforcement, failure to follow governing documents, and improper board actions, any of which may invalidate election results.

  • Dispute Resolution & Operational Risk

  • ADR includes mediation or arbitration to resolve HOA disputes outside of court. CCIOA requires associations to adopt an ADR policy, though participation is not mandatory.

  • Without a functioning board or management, enforcement and operations may cease, exposing the association to legal and financial risk. Legal counsel can assist with appointment, receivership, or restructuring options.

  • An HOA attorney helps ensure compliance with Colorado law, drafts and reviews governing documents and policies, advises boards on risk management, and represents associations in disputes and collections.

II. Financial & Budget: Assessments, Reserves, Collections

  • Budget Adoption & Amendments

  • Colorado HOAs must adopt an annual budget and provide it to homeowners. Unless the declaration states otherwise, budgets are ratified unless a majority of owners veto the proposed budget.

  • If the declaration does not cap assessments or budget increases, CCIOA §38-33.3-303(4) requires:

    • Board adoption of the proposed budget

    • Delivery of a budget summary within 90 days

    • Owner meeting for budget consideration

    • Budget approval unless vetoed by a majority of owners

    • No quorum requirement for the veto meeting

  • Yes. CCIOA §38-33.3-302(1)(b) allows boards to amend budgets, subject to ratification or owner approval if required by the declaration.

  • Assessments & Collections

  • Regular assessments fund ongoing operational and maintenance expenses and are typically paid monthly, quarterly, or annually.

  • Special assessments fund unexpected or non-budgeted expenses. Owner approval is required if the declaration mandates it; otherwise, a veto-style ratification process is recommended.

  • It depends on the declaration. Many allow increases up to a certain percentage without a vote; increases beyond that threshold typically require owner approval.

  • Yes. Colorado law allows HOAs to record statutory liens for unpaid assessments, fines, and authorized charges, which may lead to foreclosure if unpaid.

  • Fines must be imposed pursuant to a properly adopted enforcement policy that complies with CCIOA notice and hearing requirements.

  • Reserves, Audits & Financial Oversight

  • CCIOA does not require reserve studies but does require a written reserve study policy addressing timing, funding, and methodology.

  • An audit is required if the association has annual revenues of $250,000 or more and one-third of owners request it.

III. Homeowner: Rights, Records, Disputes, Transparency

  • HOA Basics & Governing Documents

  • An HOA is a nonprofit corporation that governs a common interest community under CCIOA through recorded governing documents.

  • Primarily CCIOA and the Colorado Revised Nonprofit Corporation Act.

  • Generally:

    1. Declaration (CC&Rs)

    2. Articles of Incorporation

    3. Bylaws

    4. Governance Policies

    5. Rules & Regulations

    6. Design Guidelines

  • Records Inspection & Transparency

  • Associations may require written requests with reasonable particularity, advance notice (at least 10 days), limit inspection times, and charge reasonable production costs.

  • CCIOA requires production of financial records, governing documents, meeting minutes, contracts, reserve studies (if any), ballots, insurance disclosures, and more.

  • Associations may or must withhold privileged communications, executive session materials, personnel records, personal identifying information, and certain confidential documents.

  • Owners should review CCIOA §38-33.3-317 and the association’s records policy. Legal remedies may be available for wrongful denial.

  • Disclosures, Disputes & Owner Rights

  • CCIOA requires annual disclosures covering budgets, insurance, governing documents, meeting minutes, reserves, audits, and governance policies.

  • Common disputes involve enforcement actions, records access, architectural approvals, fines, parking, and rule interpretation.

  • Yes, if authorized by governing documents and consistent with CCIOA and public-policy protections.

  • Owners may nominate candidates and remove directors according to the governing documents and CCIOA procedures.