Colorado’s Proposed HB25-1123 – Alternative Dispute Resolution

HB25-1123 continues to take shape as it makes its way from the Colorado House to the Senate.

In its current form, proposed HB25-1123 builds and expands on existing provisions in the Colorado Common Interest Ownership Act (CCIOA) regarding alternative dispute resolution. Specifically, House Bill 25-1123 seeks to implement mandatory dispute resolution processes and procedures for resolving conflicts between community associations and owners through informal dispute resolution or, in certain cases, by means of mandatory mediation or arbitration. The specific framework remains to be seen, as several amendments have been presented. They are evolving as a result of recent committee hearings/public testimony and ongoing stakeholder meetings.

HB25-1123 initially casts a very broad net, capturing and/or encapsulating virtually any dispute(s) between associations and homeowners (including trivial disputes) and creating and/or resulting in significant financial and administrative burdens on associations and homeowners alike. Stakeholders, including the Community Associations Institute and representatives from the CAI Colorado Legislative Action Committee (CLAC) are hoping to narrow the scope of HB25-1123 to create a more balanced and less burdensome approach.