Colorado Law · Enforcement & Violations · Updated for HB22-1137

Fines in Colorado: The Enforcement Policy, Cure Periods, and the Limits After HB22-1137

A Colorado association’s power to fine comes with a statute that sets the process: a written policy the association follows, notice, a hearing before an impartial decision maker, and a cure period before any fine. Daily fines are prohibited, and non-safety violations carry a $500 total cap.

Educational notice. This information is educational in nature and should not be construed as legal advice. Statutory references are to the Colorado Revised Statutes 2024 edition as printed by the Office of Legislative Legal Services, together with HB22-1137 and HB24-1337 as noted in the text; later amendments are possible. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.

The Short Version

CCIOA lets an association levy reasonable fines after notice and an opportunity to be heard (C.R.S. § 38-33.3-302(1)(k)(I)). Three layers sit on top of that grant:

1. A written fine policy. Section 209.5(2) generally provides that the association may not fine an owner unless it has adopted, and follows, a written policy with a fair and impartial fact-finding process that guarantees notice and an opportunity to be heard before an impartial decision maker. Enforcement, including notice and hearing procedures and the fine schedule, is also one of the nine required responsible governance policies (§ 209.5(1)(b)(IV)).
2. Timing and a ceiling. HB22-1137 prohibited daily fines and daily late fees and set two tracks: a 72-hour cure for violations the association reasonably determines threaten public safety or health, and a 30-day cure, a $500 total cap, and two consecutive 30-day cure periods before legal action for all others (§ 209.5(1.7)(b)).
3. No foreclosure on fines. An assessment lien may not be foreclosed where the debt is only fines, or only fine-related collection costs and attorney fees (§ 209.5(8)(c)).

Who This Reaches: Pre-1992 Communities

CCIOA applies in full to communities created on or after July 1, 1992. For older communities, only the sections listed in § 38-33.3-117 apply. The § 302(1)(k) fining power and § 123 apply to pre-1992 communities for events on or after July 1, 1992 (§ 117(1)). Section 209.5, including the written-policy requirement and the cure periods, applies from January 1, 2006 (§ 117(1.5)). Which sections reach a particular older community, and how they interact with its original documents, is a question for counsel. The CCIOA overview walks through the § 117 table.

Layer 1: The Written Policy

Under § 209.5(2), the statutory question is not only whether a violation occurred. It is whether the association has a written fine policy and follows it. The statute makes both a precondition of fining.

Section 209.5(2) lists what the policy must contain:

• a fair and impartial fact-finding process on whether the violation occurred and whether the owner is the one responsible, which may be informal but must guarantee notice and an opportunity to be heard before an impartial decision maker (§ 209.5(2)(b)(I));
• notice of the nature of the alleged violation, the action required to cure it, and the timeline for the fact-finding process (§ 209.5(2)(c)(I)); and
• the interval at which fines may be levied for continuing violations, consistent with § 209.5(1.7)(b) (§ 209.5(2)(c)(II)).

An “impartial decision maker” is a person or group with enforcement authority and no direct personal or financial interest in the outcome. A decision maker is not treated as interested if the outcome brings them no greater benefit or detriment than the general membership (§ 209.5(2)(b)(II)).

The policy is an association record owners may inspect (§ 317(1)(f)) and part of the annual disclosure (§ 209.4(2)). The full policy set is covered in Colorado’s nine responsible governance policies.

Layer 2: The HB22-1137 Cure Periods and Cap

Section 209.5(1.7)(b) divides violations into two tracks. The association makes the initial determination of which track applies (“reasonably determines”). Whether that determination holds up on a given set of facts is a legal question.

The statute adds mechanics boards often miss:

• Visual evidence of cure. If the owner notifies the association of a cure and sends visual evidence, the violation is deemed cured on the date the owner sends the notice. Without visual evidence, the association inspects as soon as practicable (§ 209.5(1.7)(b)(IV)).
• Seven-day inspection. If the association receives no cure notice, it inspects within 7 days after the 30-day cure period ends. If the violation is not cured, a second 30-day period begins, or legal action may follow if two periods have run (§ 209.5(1.7)(b)(V)).
• Post-cure notice. Once the violation is cured, the association notifies the owner that no further fines will be imposed for it and of any outstanding fine balance (§ 209.5(1.7)(b)(VI)).
• Late fees too. The daily-charge prohibition covers late fees as well as fines (§ 209.5(1.7)(b)(I)).

A violations program built around fines that grow at each drive-through runs against this design, which is oriented toward cure rather than accumulated balances. CICSC’s compliance before conflict standard rests on the same idea.

Layer 3: The Hearing

The owner’s right to be heard comes from the fining power itself (§ 302(1)(k)(I)) and from the written-policy requirement (§ 209.5(2)). CCIOA does not prescribe a hearing format, committee size or fixed hearing deadline; those details live in the association’s policy.

• Executive session. Section 38-33.3-308(4)(e) lists an owner disciplinary hearing among the topics a board may take into executive session, and the owner may obtain the result of the vote. The chair announces the general topic first, no rule may be adopted in closed session, and the minutes note the session and its general subject (§ 308(5)–(7)). See Colorado board meetings under § 308.
• A not-responsible finding. If the fact-finding process determines the owner should not be held responsible, the association may not allocate its costs or attorney fees for the claim to the owner’s account (§ 209.5(3)).

The broader due-process standard is covered in Due Process Before Fines.

When a Violation Moves Toward Legal Action

After the cure periods run, § 209.5(1.7)(b) permits legal action. That is a decision point where boards typically involve association counsel before acting, and where owners commonly consult their own attorney. Several statutory rules frame it:

• No foreclosure on fines. Foreclosure may not rest on fines alone or on collection costs and attorney fees associated only with fines (§ 209.5(8)(c)). Fees, charges, late charges, attorney fees, fines and interest may be subject to the lien but not to a foreclosure action (§ 316(1)(a)). See assessment liens and foreclosure in Colorado.
• Attorney fees. For non-assessment violations, pre-suit reimbursement of the association’s attorney fees is limited to the lesser of $5,000 or 50% of its actual costs (§ 123(1)(b)(II)). In a civil action, the court awards fees to the prevailing party (§ 123(1)(c)(I)); in an action to collect money owed, the association’s fee award is subject to the same limit unless the court finds the owner was able to comply but willfully failed to (§ 123(1)(c)(II)). The limits are adjusted for inflation from August 1, 2025 (§ 123(1)(g)).
• An owner who did not commit the violation. Where a court finds the owner prevailed because the owner did not commit the alleged violation, the court awards the owner reasonable fees and costs and awards none to the association (§ 123(1)(d)).
• Small claims. Disputes over assessments, fines or fees up to $7,500, exclusive of interest and costs, may be filed in small claims court (§ 209.5(9)). Notices of delinquency describe the pre-suit steps, the cure process, and the matters that may go to small claims (§ 209.5(6)).
• One-year window for building restrictions. An action to enforce a building restriction must be commenced within one year after the person bringing it knew, or with reasonable diligence should have known, of the violation (§ 123(2)).
• Registration. An association that is unregistered with the Division of Real Estate, or whose registration has expired, has its § 123 enforcement mechanisms suspended until it registers (§ 401(3)). See annual registration with DORA.

Owners looking for general information on these rules may consult the HOA Information and Resource Center at the Colorado Division of Real Estate. CICSC is not affiliated with the Center.

Other Limits on Fines

• Drought compliance. An association may not fine an owner for under-watering while the owner complies with local water restrictions (§ 302(1)(k)(II)). See what a Colorado HOA cannot prohibit.
• Interest. Interest on unpaid assessments, fines or fees may not exceed 8% per year (§ 209.5(8)(a)).
• Architectural decisions must follow documented standards and may not be arbitrary or capricious (§ 302(3)(b)).
• The covenant behind the fine. In Houston v. Wilson Mesa Ranch Homeowners Ass’n, 2015 COA 113, the Court of Appeals held unenforceable a board procedure that banned unapproved short-term rentals and imposed fines, reasoning that the association “cannot rely on that authority to enforce a nonexistent covenant provision.” The holding concerns the covenants in that case. CICSC located no published Colorado appellate decision construing the HB22-1137 fine limits themselves.

Why This Matters

The policy is the enforcement program. Under § 209.5(2), the policy is not paperwork that sits beside enforcement; the statute conditions fining on it. A board that has not read its enforcement policy is exercising a power it cannot fully see.

The cap changes the incentive. With a $500 total for non-safety violations and no daily fines, a fine is a nudge toward cure, not leverage. Boards that measure their program by violations closed, not dollars billed, are working with the statute’s design.

Consistency is part of fairness. An impartial process applied to some owners and not others invites a selective-enforcement challenge. See Selective Enforcement Voids a Valid Rule.

Common Mistakes & Pitfalls

Frequently Asked Questions

Can a Colorado HOA charge daily fines?

C.R.S. § 38-33.3-209.5(1.7)(b), added by HB22-1137 (effective August 10, 2022), generally prohibits imposing fines or late fees on a daily basis. For a violation the association reasonably determines threatens public safety or health, the statute allows fines no more often than every other day after a 72-hour cure period. How the statute applies to a particular fine is a question for the association’s counsel or the owner’s attorney.

What is the maximum fine for a Colorado HOA violation?

For a violation that does not threaten public safety or health, C.R.S. § 38-33.3-209.5(1.7)(b)(III)(A) provides that the total fines imposed for the violation may not exceed $500. The safety-and-health track in § 209.5(1.7)(b)(II) states no total cap. Which track a violation falls on, and how the cap applies to a specific matter, depend on the facts and are questions for counsel.

Does a Colorado HOA need a written fine policy before it can fine?

C.R.S. § 38-33.3-209.5(2) generally provides that an association may not fine an owner unless it has adopted, and follows, a written policy that includes a fair and impartial fact-finding process guaranteeing notice and an opportunity to be heard before an impartial decision maker. Whether a particular policy meets that standard is a question for the association’s counsel.

Who counts as an impartial decision maker in a Colorado fine hearing?

C.R.S. § 38-33.3-209.5(2)(b)(II) defines an impartial decision maker as a person or group with authority to decide enforcement matters who has no direct personal or financial interest in the outcome. A decision maker is not treated as interested if the outcome gives them no greater benefit or detriment than the general membership. The statute does not name a committee structure; associations set that in their written policy.

Can a Colorado HOA foreclose on a home for unpaid fines?

C.R.S. § 38-33.3-209.5(8)(c) generally prohibits foreclosing an assessment lien where the debt consists only of fines, or only of collection costs and attorney fees associated with fines. Section 38-33.3-316(1)(a) provides that fees, charges, late charges, attorney fees, fines and interest may be subject to the statutory lien but not to a foreclosure action. Questions about a specific account belong with counsel.

What happens if the owner is found not responsible for the violation?

Under C.R.S. § 38-33.3-209.5(3), if the fact-finding process determines the owner should not be held responsible, the association may not allocate its costs or attorney fees for the claim to the owner’s account. Separately, § 38-33.3-123(1)(d) provides that where a court finds the owner prevailed because the owner did not commit the alleged violation, the court awards the owner reasonable attorney fees and costs and awards none to the association.

Key Takeaways

• Section 209.5(2) conditions fining on an adopted written policy, followed as written, with notice and a hearing before an impartial decision maker.
• Daily fines and daily late fees are prohibited (§ 209.5(1.7)(b)(I)).
• Safety and health violations: written notice, a 72-hour cure, then fines no more often than every other day.
• Other violations: certified-mail notice, a 30-day cure before fines, a $500 total cap, and two 30-day cure periods before legal action.
• Fines alone cannot support foreclosure (§ 209.5(8)(c); § 316(1)(a)).
• The move from cure periods to legal action is a point where boards typically involve association counsel.
• Pre-1992 communities are reached by § 209.5 from January 1, 2006 (§ 117(1.5)).

References & Sources

1. C.R.S. § 38-33.3-302(1)(k), (3)(b) — Powers of unit owners’ association. Colorado Revised Statutes 2024, Title 38. content.leg.colorado.gov — crs2024-title-38.pdf
2. C.R.S. § 38-33.3-209.5(1)(b)(IV), (1.7)(b), (2), (3), (6), (8), (9) — Responsible governance policies; due process for imposition of fines.
3. C.R.S. § 38-33.3-123(1)(b)–(d), (g), (2) — Enforcement; attorney fees; limitation for building-restriction actions.
4. C.R.S. § 38-33.3-308(4)(e), (5)–(7) — Executive session for disciplinary hearings.
5. C.R.S. § 38-33.3-316(1)(a) — Lien; amounts not subject to foreclosure.
6. C.R.S. § 38-33.3-401(3) — Registration; suspension of enforcement rights while unregistered.
7. C.R.S. § 38-33.3-117(1), (1.5) — Applicability to communities created before July 1, 1992.
8. HB22-1137, HOA Board Accountability and Transparency, Session Laws 2022, ch. 367, effective August 10, 2022. leg.colorado.gov/bills/hb22-1137
9. HB24-1337, Real Property Owner Unit Association Collections, Session Laws 2024, ch. 422, effective August 7, 2024. leg.colorado.gov/bills/hb24-1337
10. Houston v. Wilson Mesa Ranch Homeowners Ass’n, 2015 COA 113, 360 P.3d 255.

Related Resources & Additional Reading from the CIC-SC Library

• The Nine Responsible Governance Policies Under § 38-33.3-209.5 — where the enforcement policy sits.
• Collections in Colorado — the delinquency side of § 209.5.
• Colorado Board Meetings Under § 38-33.3-308 — executive session for disciplinary hearings.
• Due Process Before Fines: The Hearing a Board Cannot Skip
• Selective Enforcement Voids a Valid Rule
• Compliance Before Conflict

Tags: Colorado HOA fines · C.R.S. 38-33.3-209.5 · HB22-1137 · no daily fines · $500 fine cap · 72-hour cure · 30-day cure · impartial decision maker · enforcement policy · executive session disciplinary hearing · CCIOA enforcement

Disclaimer. This article is published by the Common Interest Community Standards Council for educational and informational purposes only. It is not legal advice and does not establish an attorney-client relationship. Statutory references and procedural frameworks are intended to support informed governance, not to substitute for advice from qualified Colorado legal counsel. Boards and managers should consult their association’s attorney about the application of any statute, governing-document provision, or enforcement decision to their specific circumstances. CIC-SC, its authors, and its members assume no liability for actions taken in reliance on this content.

Published by the Common Interest Community Standards Council (CICSC). Part of the CICSC Member Education Library. © 2026 CICSC. Educational use permitted with attribution.