Colorado Law · Assessments & Collections · Updated for HB25-1043
Assessment Liens and Foreclosure in Colorado: § 38-33.3-316 and the Limits Added Since 2022
Colorado gives an association a strong lien, including six months of priority over a first mortgage. It has also wrapped foreclosure in conditions that grew in 2022, 2024 and 2025: a balance threshold, a recorded board vote, no foreclosure on fines, a prior-judgment rule for owner-occupied homes, and an owner’s motion to stay the auction. This article sets out the framework. It does not predict how any case will come out.
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 the signed text of HB25-1043 (2025); later amendments are possible. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.
The Short Version
- The lien. Recording the declaration perfects the association’s statutory lien (§ 316(4)), and the lien is extinguished unless enforcement proceedings begin within six years after the assessments become due (§ 316(5)). It has limited priority over a first mortgage (§ 316(2)(b)).
- What cannot be foreclosed. Fines, and costs and attorney fees associated only with fines, cannot support foreclosure (§ 209.5(8)(c)). Fees, charges, late charges, attorney fees, fines and interest may be part of the lien but are not subject to a foreclosure action (§ 316(1)(a)).
- The threshold and the vote. The balance must equal or exceed six months of common expense assessments, and the board must formally resolve, by recorded vote, to file against the specific unit. The board may not delegate that decision (§ 316(11)).
- Owner-occupied homes. A prior personal judgment is generally required, with listed exceptions (§ 316(10.5)–(10.6)).
- After filing and after the sale. HB25-1043 created an owner’s motion to stay the auction (§ 38-38-109.5). HB24-1337 added redemption rights for the former owner and certain others after an association foreclosure sale.
Who This Reaches: Pre-1992 Communities
Sections 316 and 316.3 apply to communities created before July 1, 1992, for events on or after that date (§ 117(1)). Where a listed section conflicts with an older declaration, § 117(2) generally lets the document control only to the extent needed to avoid invalidating it, but § 316 is one of two sections that apply as written. Section 209.5 reaches pre-1992 communities from January 1, 2006 (§ 117(1.5)). Applicability to a particular older community is a question for counsel. See the CCIOA overview.
The Lien and Its Priority
The lien is generally prior to other liens on the unit, with exceptions that include liens recorded before the declaration, real estate taxes, and a first-priority security interest recorded before the assessment became delinquent (§ 316(2)(a)). Against that first security interest, the lien still has priority to the extent of the common expense assessments, based on the adopted periodic budget, that would have come due in the six months before an action or nonjudicial foreclosure to enforce or extinguish the lien (§ 316(2)(b)(I)). That priority applies where the other lien was created after June 30, 1992 (§ 316(2)(d)).
Two Court of Appeals decisions describe how the priority was read under earlier text:
- First Atlantic Mortgage, LLC v. Sunstone North Homeowners Ass’n, 121 P.3d 254 (Colo. App. 2005), construing the 2004 text, held that the maximum priority amount is measured solely by six months of regular common-expense assessments, while the lien itself may consist of any charges listed in § 316(1).
- BA Mortgage, LLC v. Quail Creek Condominium Ass’n, 192 P.3d 447 (Colo. App. 2008), construing the 2007 text, held that priority is determined under § 316, not the declaration.
Section 316 has been amended since, including by HB22-1137, HB24-1337 and HB25-1043. Neither holding should be read as current law without checking the current statute.
A related rule: on a written request delivered personally or by certified mail to the registered agent, the association furnishes a written statement of unpaid assessments within 14 calendar days. The statement binds the association, and if it is not furnished, the association has no right to assert a lien for assessments due as of the request date (§ 316(8)). The effect on a specific transaction is a question for counsel.
What a Foreclosure Can and Cannot Include
Under § 209.5(8)(c), foreclosure cannot rest on fines alone or on collection costs and attorney fees associated only with fines. Under § 316(1)(a), fees, charges, late charges, attorney fees, fines and interest may be part of the lien but are not subject to a foreclosure action. Payments apply first to assessments, then to fines and fees (§ 316.3(4)). The ledger matters, which is one reason the monthly itemized statement in § 209.5(1.7)(c) exists. The fine side is covered in Fines in Colorado.
The Statutory Conditions Before Foreclosure
The statute lists the following conditions. Whether they are met on a particular account is a determination for association counsel, and owners facing foreclosure commonly consult their own attorney.
| Condition | Source |
|---|---|
| Compliance with the requirements of §§ 209.5, 316 and 316.3 related to the delinquency, including the first-contact notices and the recorded vote to refer | § 209.5(7)(a)(I); § 209.5(1.7)(a) |
| Written offer of an 18-month repayment plan (owner chooses the monthly amount, at least $25), and the owner did not accept within 30 days, or after accepting failed to pay at least three installments within 15 days after they were due | § 209.5(7)(a)(II)–(III) |
| No foreclosure while the owner complies with a § 316.3 payment plan | § 316.3(3.5) |
| Balance secured by the lien equals or exceeds six months of common expense assessments based on the adopted budget | § 316(11)(a)(I) |
| Board formally resolves, by recorded vote, to file against the specific unit; the duty may not be delegated to an attorney, insurer, manager or other person; an action filed without evidence of the vote must be dismissed, and its fees and costs may not be assessed to the owner | § 316(11)(a)(II) |
| Unit owned by an individual as a principal residence, or used for workforce housing: a prior personal judgment, or a civil action prevented by the owner’s death or incapacity, or a reasonable attempt at service that failed for 180 days, or the owner’s bankruptcy | § 316(10.5)–(10.6) |
| At least 30 days before filing: written and electronic notice to the owner of the right to mediate (owner responds within 30 days), and written and electronic notice to lienholders in the property records, with the amount owed | § 316(10.7) |
| At least 30 days before filing: notice of the right to credit counseling, and a notice of intent to foreclose sent by certified mail plus two other listed means (HB25-1043) | § 316(10.3), (10.8) |
| Strict compliance with applicable lien and foreclosure provisions of Title 38 and of the governing documents, as a condition of recovering money, costs or fees through foreclosure (HB25-1043) | § 123(3) |
| Valid registration with the Division of Real Estate; an unregistered association’s § 316 lien rights are suspended until it registers | § 401(3) |
The recorded vote in § 316(11) is a decision point the statute assigns to the board itself. Boards typically review the account against these conditions with association counsel before that vote. The collection steps that come before all of this are covered in Collections in Colorado.
The HB25-1043 Layer
HB25-1043 (signed June 4, 2025; effective October 1, 2025, for enforcement actions instituted on or after that date) added the following, read from the signed act:
- Strict compliance and a possible stay. If a court finds the association is not in strict compliance with the Title 38 lien or foreclosure provisions, it may stay the proceedings to give the association reasonable time to comply. During the stay, the association may not assess or accrue late fees, interest or other delinquency charges (§ 123(3)). In setting fees, the court considers whether the association incurred inflated or duplicative fees because of such a stay (§ 123(1)(f)(III.5)).
- Notice of intent to foreclose. At least 30 days before filing, a notice stating that the association intends to sue, that a court-ordered auction could follow, that the owner could lose some or all equity, and that the owner has rights to credit counseling and mediation, with information on the HOA Information and Resource Center (§ 316(10.8)).
- Notice to lienholders after filing. No later than five business days after filing, written and electronic notice to all lienholders identified in the property records of the right to cure the nonpayment (§ 38-38-104) and of the owner’s right to move to stay the sale (§ 316(11.2)).
- Owner’s motion to stay the auction. At any time after the association files for foreclosure and before the sale date, the owner may move to stay the sale and list the unit at fair market value or a stated alternate amount. The court sets the list price if the association objects. The stay lasts nine months from the order and may be extended for good cause or an imminent sale; sale proceeds are held in escrow and distributed by the court by lien priority (§ 38-38-109.5). The section does not apply to time-share units.
These rules describe rights and duties on both sides. How they apply to a pending matter is a question for association counsel or the owner’s attorney. General information for owners is available from the HOA Information and Resource Center at the Division of Real Estate; CICSC is not affiliated with the Center.
After the Sale
- Redemption. HB24-1337 treats the former owner, a pre-existing tenant, and certain affordable-housing entities and governments as “alternate lienors” who may redeem after the foreclosure sale of an association lien (§ 38-38-305.5). An alternate lienor that files a notice of intent to redeem may redeem no sooner than 35 and no later than 180 days after the sale (§ 38-38-302(4)(a)(II)). The redemption mechanics are technical; their application is a question for counsel.
- Purchase ban. Board members, employees of the association’s management company and law firm, their immediate family, the management company itself, anyone in those roles during the five years before the sale, and affiliated business entities may not buy a unit foreclosed under § 316 (§ 316(12)).
- Covenants run with the unit. A foreclosure purchaser takes the unit subject to the use and sale covenants the prior owner was subject to (§ 316(13)).
- Owner remedy. An owner may sue within five years after a violation of the foreclosure laws; the court may award up to $25,000 plus costs and reasonable attorney fees if the violation is proved by a preponderance of the evidence (§ 316.3(5)).
Attorney Fees
Pre-suit reimbursement of collection attorney fees is limited to the lesser of $5,000 or 50% of the assessments and money owed (§ 123(1)(a)(II)). In a civil action to collect money owed, the court’s fee award to the association is limited to the lesser of $5,000 or 50% of its actual costs, 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)). In a lien foreclosure, the court weighs listed factors, including whether the fees exceed the unpaid assessments (§ 123(1)(f)). Fees incurred before the § 209.5(1.7)(a) notices were complied with are not recoverable (§ 316(7)(b)). See The True Cost of Collecting Delinquency.
Why This Matters
Foreclosure is a board decision, by statute. The recorded, unit-specific, non-delegable vote in § 316(11) puts the decision with the board. Counsel is the right source for reviewing an account against the conditions above before that vote.
Common Mistakes & Pitfalls
Frequently Asked Questions
Does a Colorado HOA lien have priority over the first mortgage?
C.R.S. § 38-33.3-316(2)(b) gives the association’s lien priority over a first-priority security interest recorded before the assessment became delinquent, to the extent of the common expense assessments that would have come due in the six months before an action to enforce or extinguish the lien. Court of Appeals decisions from 2005 and 2008 construed earlier versions of § 316; whether they apply to a specific loan or lien is a question for counsel.
Can a Colorado HOA foreclose 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. Under § 38-33.3-316(1)(a), 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 conditions does Colorado law set before an HOA foreclosure?
Several. C.R.S. § 38-33.3-316(11) generally requires an assessment balance of at least six months of common expense assessments and a recorded board vote to file against the specific unit. Section 38-33.3-209.5(7) requires compliance with §§ 209.5, 316 and 316.3 and a written 18-month repayment-plan offer. For an individual’s principal residence, § 316(10.5)–(10.6) generally requires a prior personal judgment, with listed exceptions. Whether the conditions are met on any account is a question for association counsel.
What notice of mediation does Colorado require before an HOA foreclosure?
C.R.S. § 38-33.3-316(10.7) provides that at least 30 days before initiating legal action to foreclose, the association gives the owner written and electronic notice of the right to mediate, and the owner has 30 days to respond. The association also gives 30 days’ notice of the pending action to all lienholders identified in the property records. Owners facing foreclosure commonly consult their own attorney.
Who is barred from buying a unit a Colorado HOA forecloses?
C.R.S. § 38-33.3-316(12) bars board members, employees of the association’s management company and law firm, their immediate family members, the management company itself, anyone in one of those roles during the five years before the sale, and business entities owned by or affiliated with them during that period, from purchasing a unit foreclosed under § 316.
What did HB25-1043 add to Colorado HOA foreclosures?
HB25-1043 (effective October 1, 2025, for enforcement actions instituted on or after that date) made strict compliance with the lien and foreclosure provisions a condition of recovering money through foreclosure, with a possible court stay to allow compliance (C.R.S. § 38-33.3-123(3)); added 30-day pre-filing notices of intent to foreclose and of credit counseling (§ 316(10.3), (10.8)); required notice to lienholders within five business days after filing (§ 316(11.2)); and created an owner’s motion to stay the auction so the unit can be listed for sale (§ 38-38-109.5).
Key Takeaways
- The § 316 lien is perfected by recording the declaration and has six-month priority over a first security interest (§ 316(2)(b), (4)).
- Foreclosure requires a six-month balance and a recorded, unit-specific, non-delegable board vote (§ 316(11)).
- Owner-occupied principal residences generally need a prior personal judgment for debts accrued on or after August 7, 2024.
- HB25-1043 added strict-compliance, notice and auction-stay rules for actions instituted on or after October 1, 2025.
- Boards typically involve association counsel before the foreclosure vote; owners commonly consult their own attorney.
References & Sources
- C.R.S. § 38-33.3-316(1)(a), (2), (4), (5), (7)(b), (8), (10.5)–(10.7), (11), (12), (13) — Lien for assessments. Colorado Revised Statutes 2024, Title 38. content.leg.colorado.gov — crs2024-title-38.pdf
- C.R.S. § 38-33.3-316.3(3.5), (4), (5) — Payment plans; no foreclosure during compliance; owner remedy.
- C.R.S. § 38-33.3-209.5(1.7), (7), (8)(c) — Collection preconditions; pre-foreclosure repayment offer; no foreclosure on fines.
- C.R.S. § 38-33.3-123(1)(a), (1)(c), (1)(f), (1)(g) — Collection attorney-fee limits and factors.
- C.R.S. §§ 38-38-302(4)(a)(II), 38-38-305.5 — Redemption by alternate lienors after sale of a unit association lien.
- C.R.S. § 38-33.3-401(3) — Registration; suspension of lien rights.
- C.R.S. § 38-33.3-117(1), (1.5), (2) — Applicability to communities created before July 1, 1992.
- HB22-1137, Session Laws 2022, ch. 367, effective August 10, 2022. leg.colorado.gov/bills/hb22-1137
- HB24-1337, Real Property Owner Unit Association Collections, Session Laws 2024, ch. 422, effective August 7, 2024. leg.colorado.gov/bills/hb24-1337
- HB25-1043, Owner Equity Protection in HOA Foreclosure Sales, Session Laws 2025, ch. 433, effective October 1, 2025 (adding C.R.S. §§ 38-33.3-123(3), -316(10.3), (10.8), (11.2), (14), and 38-38-109.5). Signed act
- First Atlantic Mortgage, LLC v. Sunstone North Homeowners Ass’n, 121 P.3d 254 (Colo. App. 2005).
- BA Mortgage, LLC v. Quail Creek Condominium Ass’n, 192 P.3d 447 (Colo. App. 2008).
Related Resources & Additional Reading from the CIC-SC Library
- Collections in Colorado — the steps before any lien enforcement.
- Fines in Colorado — why fines stay out of foreclosure.
- Registering With DORA — registration as a condition of lien enforcement.
- Colorado’s Common Interest Ownership Act: Overview
- The True Cost of Collecting Delinquency
- Budgeting for Delinquency
The CIC-SC Board Operating Standard in the Open Library frames collections and lien enforcement as a documented board process. Explore the Colorado resource hub.
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 foreclosure 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.