Delinquent HOA Dues in Colorado: What Boards Can and Can’t Do

HOA Collections · Colorado

Colorado boards can still collect unpaid dues, but only by following a strict, written process. Since 2022 the state has added notice rules, an 18-month payment plan, an 8% interest cap, limits on attorney fees and a ban on foreclosing for fines alone. Skip a step, and the association may lose the right to collect what it’s owed.

Where the rules come from

Three recent laws reshaped HOA collections in Colorado:

What boards can do

• Charge late fees and interest under a written collection policy, with interest capped at 8% a year (C.R.S. 38-33.3-209.5).
• Record a lien. The association has a lien for unpaid assessments, and part of it has priority over a first mortgage (C.R.S. 38-33.3-316).
• Refer the account to a collection agency or attorney, after a recorded board vote.
• Go to small claims court for amounts up to $7,500, not counting interest and costs.
• Recover some attorney fees, up to the lesser of $5,000 or 50% of what’s owed, adjusted for inflation each August (C.R.S. 38-33.3-123).
• Foreclose, as a last resort, only on unpaid assessments that equal at least six months of regular dues.

What boards can’t do

• Charge daily late fees or daily fines.
• Use late fees and fines as a way to fund the general budget.
• Charge a fee for a statement of what the owner owes.
• Apply payments to fines or fees before past-due assessments. Payments go to assessments first.
• Let the manager send an account to collections without a board vote.
• Foreclose when the balance is only fines, fees or collection costs.

The steps before collections

1. Follow the written collection policy. Every Colorado association needs one, and HB25-1043 added new required content, like who to contact for a copy of the ledger.
2. Send notice. A delinquency notice by certified mail, plus contact by two other methods, such as email, text or phone.
3. Use the owner’s preferences. Send notices to a designated contact or in a preferred language when the owner asks.
4. Give 30 days to cure. The notice must explain what happens if the owner doesn’t pay.
5. Send monthly itemized statements of everything owed.
6. Offer a payment plan before any foreclosure. More in our guide to payment plans and late fees.
7. Board vote to refer the account, recorded in the minutes.

If it goes as far as foreclosure

HB25-1043 raised the bar. The association must strictly comply with CCIOA and its own documents, or a court can pause the case. At least 30 days before filing, the owner must get written and electronic notice of the right to credit counseling. Owners can also ask the court to pause the sale so they can list the home at market value (DRE HOA Forum, Oct 2025).

A mountain-town wrinkle

Many Summit and Eagle County owners live out of state. Notices to an old address don’t help anyone. The law now asks boards to periodically request a phone number, a cell number for texts and an email address for notices. Ask every year, and keep a record that you did.

How good books prevent most of this

• Clear owner ledgers, updated every month
• Reminders as soon as a payment is late
• Monthly itemized statements to anyone with a balance
• A delinquency report the board sees every month

We track who owes what and send reminders and statements for the associations we work with. The board makes the call on next steps. See our HOA accounting services and pricing. Denver metro boards can see our HOA accounting services in Denver.

This is accounting education, not legal advice. Talk to an HOA attorney before sending any account to collections.

FAQ

Can a Colorado HOA foreclose for unpaid dues?

Only as a last resort. The amount owed in assessments must equal at least six months of regular assessments, the board must vote to proceed, the owner must first be offered an 18-month payment plan, and the association must strictly follow CCIOA and its own documents.

Can an HOA foreclose for unpaid fines in Colorado?

No. Since HB22-1137, a Colorado association cannot foreclose when the balance is made up only of fines, fees or collection costs. Fines can be pursued in other ways, such as small claims court.

Can a property manager send an owner to collections?

Not on its own. The board must vote, by majority, to refer a delinquent account to a collection agency or attorney, and the vote must be recorded in the minutes.

How much interest can a Colorado HOA charge on late dues?

No more than 8% a year on unpaid assessments, fines or fees, under C.R.S. 38-33.3-209.5.

Does the HOA have to send a monthly statement?

Yes. An association must send each owner with a balance an itemized monthly list of assessments, fines, fees and charges owed, and it can’t charge for a statement of the total due.

Sources

• C.R.S. 38-33.3-209.5 (collection policy, notices, interest)
• C.R.S. 38-33.3-316 (lien and foreclosure)
• C.R.S. 38-33.3-123 (attorney fees)
• Colorado Division of Real Estate: HB25-1043 HOA Forum (2025)
• HB22-1137, HB24-1233, HB24-1337, HB25-1043