HB 1137

In the 2022 legislative session, the Colorado Legislature made significant changes to the way homeowner associations are governed. One bill in particular, HB22-1137, added a number of new requirements for associations with a focus on covenant enforcement and collection procedures. As some of the requirements may be confusing, below is a simplified cheat sheet that can be used to aid in complying with the new law.

This is not a substitute for updated covenant enforcement and collection policies, nor should this be construed as specific legal advice, rather a tool to help you stay on track and avoid some of the possible traps set by this overly complicated new process.

Brief Summary of How HB 1137 Changed Covenant Enforcement and Collection Policies?

Covenant Enforcement Flow Chart

• If violation is a risk to Public Health and Safety
  • Provide notice to owner to cure within 72 hours
    • If not cured after inspection:
      • Association can fine every other day AND
      • Take legal action
• If violation does not risk Public Health and Safety
  • Provide violation notice which includes:
    • Specific action to cure violation
    • Owner has 30 days to cure the violation
    • After inspection, if not cured, the Association may fine
    • Right to a hearing
  • After 30 days, association SHALL inspect within 7 days
    • If cured violation closed without a fine
    • If not cured, Association must send a second notice with a second 30 day cure period
  • After the second 30 day cure period, if not cured, Association can take legal action
  • Fines for a violation cannot exceed $500.

Collections per 1137

Association Must:

• Keep records of all communications, including date/time and manner communicated
• Owner may identify another person to receive communications on their behalf
  • Association to send same notices to owner and designee
• Owner may notify Association of preference for communication in another language
• Notice to owner prior to sending to attorney
  • Sent certified mail, return receipt requested
  • Post physically to unit
  • AND one of the following
    • First class mail
    • Text message
    • Email
• To refer to attorney, must have approval of majority of board, accomplished by vote in executive session
• Association must send a statement of all itemized charges to owners with a balance owed every month

If your community’s collection and covenant enforcement policies have not yet been updated, we recommend you contact your community association attorney to assist with the preparation of the updated policies.  For further information on how HB 22-1137 changed covenant enforcement in CICs, find Joseph’s article on page 24 of CAI-Rocky Mountain Chapter’s Common Interests Magazine or on the CAI-RMC website.