Colorado Law · Assessments & Collections · Updated for HB25-1043

Collections in Colorado: The Required Policy, Payment Plans, and Notice Before Referral

Colorado wrote association collections into statute in layers: HB22-1137 in 2022, two bills in 2024, and HB25-1043 in 2025. The result is a statutory sequence: a required policy, a documented first contact, a recorded board vote before referral, capped interest, and an 18-month payment-plan duty.

By the CIC-SC Editorial Team Updated November 8, 2026 Reading time: ~10 minutes Audience: Colorado Boards, Treasurers, Managers

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

Colorado collections run on a statutory sequence centered on C.R.S. § 38-33.3-209.5 and § 38-33.3-316.3:

The collection policy. It is one of the required responsible governance policies (§ 209.5(1)(b)(I)), and § 209.5(5) sets its minimum contents. An association may not use a collection agency or take legal action to collect assessments without one that it follows (§ 209.5(5)(a)).
Monthly statements. Owners with balances receive a monthly itemized statement by first-class mail, and by e-mail if the association has the address (§ 209.5(1.7)(c)). No fee may be charged for a statement of the total owed (§ 209.5(8)(b)).
The documented first contact. The notice of delinquency goes by certified mail plus two other listed means, with a record of each contact (§ 209.5(1.7)(a)(I)).
A recorded board vote before referral. Referral to a collection agency or attorney requires a majority board vote, recorded at a meeting; a management company may not refer without it (§ 209.5(1.7)(a)(II)).
The payment plan. The association makes a good-faith effort to set up a plan of equal installments over at least 18 months (§ 316.3(1)(b), (2)).

Interest is capped at 8% a year (§ 209.5(8)(a); § 315(2)), and payments apply to assessments before fines and fees (§ 316.3(4)). Foreclosure has its own conditions, covered in assessment liens and foreclosure in Colorado.

Effective dates and currency. HB22-1137 built the framework, effective August 10, 2022. HB24-1233 (effective August 7, 2024; applies to notices of delinquency sent and payment plans entered into on or after that date) replaced posting on the unit with certified mail plus two other methods. HB24-1337 (effective August 7, 2024; applies to debts accrued on or after that date) capped collection attorney fees and tightened foreclosure. HB25-1043 (effective October 1, 2025; applies to enforcement actions instituted on or after that date) added notice advisements and foreclosure-stage notices. No 2026 enactment reviewed by CICSC amended §§ 209.5, 316 or 316.3. Verified against the 2024 Colorado Revised Statutes and enrolled bills on leg.colorado.gov; later amendments are possible.

Who This Reaches: Pre-1992 Communities

For communities created before July 1, 1992, § 38-33.3-117 decides which CCIOA sections apply. Sections 123, 316 and 316.3 apply for events on or after July 1, 1992 (§ 117(1)). Section 209.5, which holds the collection policy, the first-contact and referral rules and the 8% cap in § 209.5(8)(a), applies from January 1, 2006 (§ 117(1.5)). Of § 315, only subsection (7) is listed, so the § 315(2) interest provision is not among the listed sections. How each piece reaches a particular older community is a question for counsel. The CCIOA overview has the full § 117 table.

Step 1: The Collection Policy — § 209.5(5)

Section 209.5(5) requires the collection policy to specify, at a minimum:

the date assessments must be paid and when they are past due and delinquent;
late fees and interest;
returned-check charges;
when an owner is entitled to a payment plan under § 316.3 and its minimum terms;
that before an account is turned over to a collection agency or referred to an attorney, a notice of delinquency goes by certified mail, return receipt requested, stating the total due with an accounting, whether a payment plan is available and how to request one, a contact for requesting the ledger, and that failure to cure within 30 days may lead to collection, suit, lien foreclosure or other remedies;
how payments are applied; and
the legal remedies available.

HB25-1043 added to the notice of delinquency. A requested copy of the ledger must be provided within seven business days (§ 209.5(5)(a)(V)(C)). The 30-day warning now includes the sale of the unit at auction and possible loss of some or all of the owner’s equity (§ 209.5(5)(a)(V)(D)). And the notice must explain how to reach free online information through the HOA Information and Resource Center, and HUD information on pre-foreclosure credit counseling linked from the Department of Local Affairs website (§ 209.5(5)(a)(V)(E)). Exact notice language is counsel’s work.

Every notice of delinquency must be written in English and in any language the owner has indicated a preference for, must say whether it concerns assessments, fines and fees, or both (and, if assessments, that they may lead to foreclosure), and must describe the pre-suit steps, the cure process and the matters that may go to small claims court (§ 209.5(6)). Small claims court may hear disputes over assessments, fines or fees up to $7,500, exclusive of interest and costs (§ 209.5(9)). The policy is an association record (§ 317(1)(f)) and part of the annual disclosure (§ 209.4(2)). See Colorado’s responsible governance policies.

Step 2: Monthly Statements and the Interest Cap

An owner with a balance receives a monthly itemized statement of all assessments, fines, fees and charges owed (§ 209.5(1.7)(c)). The association may not charge for a statement of the total owed (§ 209.5(8)(b)), but may pass through certified-mail costs at actual cost (§ 209.5(11)). Interest on assessments, fines and fees may not exceed 8% per year (§ 209.5(8)(a); § 315(2)).

Late fees and interest that exceed the policy or the cap tend to show up as small, repeated errors across many ledgers. See How to Read the A/R Past-Due Report.

Step 3: The First Contact — § 209.5(1.7)(a)(I)

Before referral, the association contacts the owner, or the owner’s designated contact, with the notice of delinquency:

by certified mail, return receipt requested; and
by two of: a phone call to a number the owner supplied (with a voicemail if possible), a text to a cell number the owner supplied, an e-mail to an address the owner supplied, or, since HB25-1043, regular mail if the owner has supplied no phone, cell or e-mail (§ 209.5(1.7)(a)(I)(A)–(D)).

The association keeps a record of each contact, including its type, date and time. Owners may name a designated contact and a preferred language other than English. Contacts a manager or management company makes for the association count as the association’s, not a debt collector’s. HB25-1043 also requires the association to request owners’ phone, text and e-mail contact information periodically and keep it on file (§ 209.5(1)(a.5)).

This step is also the association’s evidence. Under § 316(7)(b), the association may not recover attorney fees incurred before it complied with the § 209.5(1.7)(a) notice requirements.

Step 4: The Recorded Board Vote to Refer — § 209.5(1.7)(a)(II)

Referral of a delinquent account to a collection agency or attorney requires a majority vote of the board in a recorded vote at a meeting conducted under § 308(4)(e). A management company may not refer an account without that vote. Section 308(4)(e) lists referral of a delinquency among the topics that may be taken into executive session, and the affected owner may obtain the result of the vote. The minutes note the executive session and its general subject (§ 308(7)). See Colorado board meetings under § 308.

Referral is a decision point where boards typically involve association counsel. A standing instruction such as “send everything over 90 days to the attorney” sits beside a statute that calls for a recorded vote; how a board’s practice lines up with that requirement is a question for counsel. Owners who receive a notice of delinquency commonly consult their own attorney, and general information is available from the HOA Information and Resource Center at the Division of Real Estate (CICSC is not affiliated with the Center).

Step 5: Payment Plans — § 316.3 and § 209.5(7)

Colorado has two payment-plan provisions that work together.

Element	§ 316.3 payment plan	§ 209.5(7) pre-foreclosure offer
Duty	Good-faith effort to coordinate with the owner on a plan (§ 316.3(1)(b))	A written offer is a condition of starting judicial foreclosure on an assessment delinquency
Term	Equal installments over at least 18 months (§ 316.3(2))	Monthly installments over 18 months
Amount	Equal installments	Owner chooses the monthly amount, at least $25 until the balance is under $25
Non-compliance	Failing to pay three or more agreed installments, or to stay current on regular assessments during the 18 months	Owner did not accept within 30 days, or after accepting failed to pay at least three installments within 15 days after they were due
Exceptions	No duty for a non-occupant owner who acquired the unit through default on a security interest or foreclosure of the association’s lien, or for an owner who previously had a § 316.3 plan (§ 316.3(1)(b)(I)–(II))	None stated in § 209.5(7)

Three more § 316.3 rules complete the picture. The association may not foreclose while the owner complies with a plan (§ 316.3(3.5), added by HB24-1337). Payments apply first to assessments, then to fines, fees and other charges (§ 316.3(4)). An owner may sue within five years after a violation of the foreclosure laws, and the court may award up to $25,000 plus costs and reasonable attorney fees if the owner proves the violation by a preponderance of the evidence (§ 316.3(5)).

Fees, Registration, and the Time-Share Carve-Out

Attorney-fee limits. 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 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)). The statute sets these terms; how they apply to a particular balance is a question for counsel.
Registration. An association that is unregistered with the Division of Real Estate, or whose registration has expired, has its § 316 lien rights and § 123 enforcement mechanisms suspended until it registers; recorded liens are not extinguished (§ 401(3)). HB25-1043 added § 401(3.2): annual registration now reports, for the prior 12 months, owners six or more months delinquent at any time, judgments obtained, § 316.3 payment plans entered, and foreclosure actions filed. See annual registration with DORA.
Time shares. Section 209.5, as amended by HB22-1137, does not apply to collections from an owner of a time-share unit not occupied by residents full time (§ 209.5(12)).

Why This Matters

The sequence leaves a record. The policy, the contact log, the recorded vote and the plan offer are each documents. When an account is later disputed, that record is what counsel, the owner’s attorney and a court will look at.

Common Mistakes & Pitfalls

Pitfall 1: A collection policy that predates the reforms. A policy last revised before HB22-1137, HB24-1233, HB24-1337 and HB25-1043 may describe steps the statute has since replaced, such as posting on the unit, or omit steps it now lists.

Pitfall 2: Certified mail alone. Section 209.5(1.7)(a)(I) lists certified mail plus two other means, with a record of each.

Pitfall 3: Manager-initiated referral. Section 209.5(1.7)(a)(II) bars a management company from referring without a recorded board vote.

Pitfall 4: Charges above the statutory limits. The statute caps interest at 8% a year, makes a statement of the total owed free, and bars recovery of attorney fees incurred before the first-contact notices were complied with.

Pitfall 5: Applying payments to fines first. Section 316.3(4) applies payments to assessments first.

Pitfall 6: Letting registration lapse. While an association is unregistered, its lien rights and § 123 enforcement are suspended (§ 401(3)).

Frequently Asked Questions

Does a Colorado HOA need a written collection policy?

Collection of unpaid assessments is one of the responsible governance policies listed in C.R.S. § 38-33.3-209.5(1)(b). Section 209.5(5) generally provides that an association may not use a collection agency or take legal action to collect unpaid assessments unless it has adopted and follows a written collection policy, and it lists the policy’s minimum contents. Whether a particular policy meets the statute is a question for the association’s counsel.

What does Colorado law require before an account is sent to collections?

C.R.S. § 38-33.3-209.5(1.7)(a)(I) generally requires the association first to contact the owner with the notice of delinquency by certified mail, return receipt requested, plus two other listed means (phone call, text, e-mail, or, since HB25-1043, regular mail if the owner has supplied no phone or e-mail), and to keep a record of each contact. Section 209.5(1.7)(a)(II) then allows referral only on a majority board vote recorded at a meeting. Boards typically review a specific referral with association counsel.

Can a Colorado management company send an account to collections on its own?

C.R.S. § 38-33.3-209.5(1.7)(a)(II) provides that a management company acting for the association may not refer a delinquent account to a collection agency or attorney unless a majority of the board votes to refer it in a recorded vote at a meeting. Section 38-33.3-308(4)(e) permits that matter to be taken up in executive session.

How long is a Colorado HOA payment plan?

C.R.S. § 38-33.3-316.3(2) provides that a payment plan under that section must permit the owner to pay the deficiency in equal installments over at least 18 months, subject to listed exceptions. Separately, § 38-33.3-209.5(7) conditions judicial foreclosure on a written offer of an 18-month repayment plan in which the owner chooses the monthly amount, at least $25 per payment. How these apply to a particular account is a question for counsel.

What interest can a Colorado HOA charge on unpaid assessments?

C.R.S. § 38-33.3-209.5(8)(a) provides that an association may not charge interest on unpaid assessments, fines or fees above 8% per year, and § 38-33.3-315(2) caps interest on past-due common expense assessments at the association’s rate, not over 8% per year. Section 209.5(8)(b) also bars a fee for providing a statement of the total amount owed.

What did HB25-1043 change about Colorado delinquency notices?

HB25-1043 (effective October 1, 2025, for enforcement actions instituted on or after that date) amended C.R.S. § 38-33.3-209.5(5)(a)(V) so the pre-referral notice of delinquency states that a requested ledger copy must be provided within seven business days, warns that nonpayment may lead to sale at auction with possible loss of equity, and explains how to reach free online information through the HOA Information and Resource Center and HUD credit-counseling information. It also added a duty to request owners’ phone, text and e-mail contact information periodically (§ 209.5(1)(a.5)).

Key Takeaways

The collection policy is a required § 209.5 policy, and § 209.5(5) sets its minimum contents.
First contact is certified mail plus two other listed means, with every contact recorded (§ 209.5(1.7)(a)(I)).
Referral requires a majority board vote recorded at a meeting, which may be held in executive session (§ 209.5(1.7)(a)(II); § 308(4)(e)). Boards typically involve counsel at this point.
Monthly itemized statements, an 8% interest cap, and no fee for a statement of the total owed.
Payment plans: equal installments over at least 18 months under § 316.3, and a written 18-month offer before judicial foreclosure under § 209.5(7).
HB25-1043 notice changes apply to enforcement actions instituted on or after October 1, 2025.

References & Sources

C.R.S. § 38-33.3-209.5(1)(b)(I), (1.7)(a), (1.7)(c), (5), (6), (7), (8), (9), (11), (12) — Responsible governance policies; collection procedures. Colorado Revised Statutes 2024, Title 38. content.leg.colorado.gov — crs2024-title-38.pdf
C.R.S. § 38-33.3-316.3 — Payment plans; no foreclosure during compliance; application of payments; owner remedy.
C.R.S. § 38-33.3-315(2) — Interest on past-due assessments.
C.R.S. § 38-33.3-316(7)(b) — No fee recovery before the first-contact notices are complied with.
C.R.S. § 38-33.3-123(1)(a), (1)(c), (1)(g) — Collection attorney-fee limits.
C.R.S. § 38-33.3-308(4)(e), (7) — Executive session for delinquency referral.
C.R.S. § 38-33.3-401(3) — Registration; suspension of lien and enforcement rights.
C.R.S. § 38-33.3-117(1), (1.5) — 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
HB24-1233, HOA Delinquency Payments Enforcement Procedures, Session Laws 2024, ch. 334, effective August 7, 2024. leg.colorado.gov/bills/hb24-1233
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. Signed act

Related Resources & Additional Reading from the CIC-SC Library

Assessment Liens and Foreclosure in Colorado — what happens after referral.
The Nine Responsible Governance Policies Under § 38-33.3-209.5
Fines in Colorado — the enforcement side of § 209.5.
How to Read the A/R Past-Due Report
Budgeting for Delinquency
The True Cost of Collecting Delinquency

Collect without creating the next dispute.
The CIC-SC Board Operating Standard in the Open Library frames collections as a documented board process. Explore the Colorado resource hub.

Tags: Colorado HOA collections · C.R.S. 38-33.3-209.5 · C.R.S. 38-33.3-316.3 · collection policy · payment plan 18 months · certified mail plus two · recorded board vote referral · 8% interest cap · HB22-1137 · HB24-1233 · HB24-1337 · HB25-1043

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 collection decision to their specific circumstances. CIC-SC, its authors, and its members assume no liability for actions taken in reliance on this content.