GOVERNACE & COMPLIANCE

COLORADO LEGISLATIVE UPDATES

New laws for Colorado HOAs:

Key 2025 Colorado Legislative Updates for HOAs and Property Management

1. HOA Financial and Legal Practices

HB 24-1337: Caps attorneys' fees charged by HOAs to 50% of assessments or $5,000, whichever is less. Also introduces a right of redemption for homeowners in HOA-foreclosed properties.

HB 24-1233: Updates collections procedures—property managers no longer need to post notices on units. Limits how many notices are sent and how they're delivered. Only hard mailing costs can be back-billed to owners.

HB 24-1158: Requires a minimum initial bid for HOA foreclosure sales.

HB 24-1267: Mandates written policies on fines, fees, and dispute resolution for metro districts and HOAs. Prevents foreclosure due to delinquent fees alone.

2. Property Use and Development

HB 24-1383: Clarifies that property owners must sign Common Interest Community Declarations—primarily affecting developers but also relevant for amendments.

HB 24-1152: HOAs cannot prohibit Accessory Dwelling Units (ADUs) on single-family detached homes, though reasonable restrictions may apply.

SB 24-005: Starting January 1, 2026, new or redevelopment projects cannot include nonfunctional turf, artificial turf, or invasive plant species.

3. Occupancy and Residential Rights

HB 24-1007: Occupancy limits based on familial relationships are prohibited. The standard is now 2 people per bedroom + 1.

HB 24-1098: Prohibits eviction of residential tenants without cause, strengthening tenant protections.

4. Towing and Vehicle Regulations

HB 24-1051: Introduces anti-predatory towing measures, requiring written permission and setting time limits for vehicle removal.

Towing carriers now face stricter guidelines, prompting changes in HOA towing policies.

5. Building Materials and Environmental Safety

HB 24-1091: HOAs cannot restrict fire-hardened building materials, supporting wildfire resilience.

6. Home-Based Businesses

SB 24-134: HOAs cannot ban home-based businesses operated by owners or residents with permission. Reasonable regulations are allowed.

For other states legislative actions, please reach out to your local business office.

Understanding the Distinct Roles of Directors and Officers in Homeowner Associations

Homeowner associations (HOAs) are governed by a board of directors and a group of officers, each playing a distinct role in the administration and oversight of the community. These individuals may also delegate responsibilities to third parties, such as property managers or landlords, to ensure the smooth operation of the association.

It is common for members of an HOA to confuse the roles of directors and officers, often assuming they are interchangeable. While it is possible for one person to serve in both capacities, the positions are separate and carry different responsibilities. Directors are typically elected by the membership and are responsible for setting policy, making strategic decisions, and ensuring the association complies with its governing documents and applicable laws. Officers, on the other hand, are usually appointed by the board and are tasked with executing the board’s directives, managing day-to-day operations, and handling administrative duties.

Recognizing the distinction between these roles is essential for effective governance and accountability within the association. Clear understanding helps prevent miscommunication, ensures proper delegation of authority, and promotes transparency in the management of community affairs.

Board of Directors Overview

The Board of Directors serves as the governing body of a homeowner’s association (HOA), entrusted with the oversight and strategic direction of the association’s management and affairs. All decisions are made collectively by the board during scheduled meetings, which may be regular, special, open, or executive sessions.

Composition and Election

The number of directors serving on the board is defined by the association’s Declarations and/or Bylaws, and is typically an odd number (e.g., 3, 5, or 7) to prevent voting deadlocks. Directors are elected by the association’s members, who also retain the authority to remove them. In cases where vacancies arise due to resignation, incapacity, death, or insufficient member elections, the board may appoint directors to fill those positions.

Qualifications and Terms

Eligibility criteria and term lengths for directors are outlined in the association’s bylaws. Directors must meet the qualifications established by applicable state statutes and the association’s governing documents.

Voting and Quorum

Directors exercise their voting rights during board meetings. A quorum, defined as a majority of the total number of directors required by the bylaws, must be present for decisions to be valid. For example, in a five-member board, a quorum would consist of at least three directors.

Board Officer Roles & Responsibilities

The board of directors comprises several officer positions, each with distinct responsibilities essential to the effective governance and operation of the association. These roles include the President, Vice President, Secretary, Treasurer, and Member at Large.

President

Presides over board and membership meetings.
Serves as liaison between management and the board of directors.
Interfaces with the association’s attorney and board members.
Oversees day-to-day operations as the general manager.
Solicits bids and meets with vendors and service providers.
Co-signs checks with the Secretary or Treasurer.
Serves as an ex officio member of committees.

Vice President

Supports the President in board and membership meetings.
Familiarizes themselves with all relevant documents.
Capable of performing the President’s duties when necessary.

Secretary

Oversees the distribution of meeting notices.
Ensures minutes are taken, approved, and verified.
Maintains and verifies the membership list.
Files required documents with the Secretary of State (facilitated by Trinity).
Acts as custodian of records and ensures proper maintenance.
May co-sign checks with the President or Treasurer.

Treasurer

Manages the association’s bank accounts and financial records.
Oversees deposits, investments, and bill payments.
Prepares the annual budget and reserve study.
Reports financial transactions to the board and membership.
Interfaces with the association’s accountant or auditor.
Implements safeguards for financial assets.
Oversees tax return preparation.
Signs bank cards and co-signs checks with the President or Secretary.

Member at Large

Assists in meeting board quorum.
Stays informed on board matters and participates in voting.
Supports the board in member interactions.
Serves as a potential Director in the event of board changes.

Role of a Full-Service HOA Management Company

A full-service Homeowners Association (HOA) management company provides comprehensive support to communities and works in close collaboration with the Board of Directors. These companies operate in accordance with the community’s governing documents and under the direction of the Board, ensuring that daily operations are managed efficiently and professionally.

While managing agents may carry out tasks independently, they are not authorized to make decisions beyond their defined responsibilities. Their role is to implement the Board’s directives and maintain transparent communication regarding completed actions.

Key Responsibilities of the Management Company

Board Collaboration: Partner closely with the HOA Board of Directors to support governance and strategic planning.
Community Liaison: Act as a bridge between the Board and homeowners, facilitating clear and consistent communication.
Issue Monitoring: Observe community activities and report concerns or complaints to the Board for resolution.
Policy Enforcement: Implement and uphold community rules and policies as directed by the Board.
Financial Management: Send billing reminders, collect dues and assessments, and support budgeting and accounting processes.
Risk Management: Assist the Board in identifying risks and coordinate with insurance brokers to ensure adequate coverage.
Administrative Support: Handle office duties, maintain records, and provide regular reports to the Board.
Community Engagement: Keep residents informed through meeting updates and document distribution, and encourage active participation.
Legal Compliance: Ensure adherence to all applicable federal, state, and local laws.
Community Advocacy: Act in the best interest of the community to preserve and enhance property values.