Colorado Law · Board Decisions · Updated for HB 25-1272 (2025)

Before a Colorado HOA Sues the Builder: CDARA and the Owner-Consent Rule

In most of a Colorado association’s business, the board decides. Construction-defect litigation is the exception. CCIOA requires the board to tell every owner what the case involves, hold a disclosure meeting, and obtain a 65% owner vote before it files, and a separate statute requires a pre-suit notice to the construction professional.

By the CIC-SC Editorial Team Updated November 8, 2026 Reading time: ~13 minutes Audience: Colorado Boards, Officers, Managers, Counsel

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 and to HB 25-1272 (effective August 6, 2025) as enacted; later amendments are possible. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.

The Short Version

Two statutes shape a Colorado association’s construction-defect claim, and they run on different tracks:

The Construction Defect Action Reform Act (CDARA), C.R.S. §§ 13-20-801 to -808, applies to claimants generally. No later than 75 days before filing an action against a construction professional (90 days for commercial property), the claimant sends a written notice of claim. The professional may inspect and offer to settle or remedy.
CCIOA § 38-33.3-303.5 applies to the association’s board. Before the board institutes a construction-defect action, it notifies every owner and each construction professional against whom the action is proposed, holds an owners’ meeting 10 to 15 days later with prescribed disclosures, and needs owner approval within a voting period that ends no later than 90 days after the notice is mailed.
The approval threshold changed in 2025. The 2024 text required owners of units to which a majority of votes in the association are allocated. HB 25-1272 (effective August 6, 2025) raised it to at least 65%, for construction-defect claims brought on or after that date.
Time limits run alongside. Section 13-80-104 sets a limitations period that starts when the defect is or should have been discovered, and an outer limit of six years after substantial completion, subject to exceptions and to statutory tolling.

Associations typically engage counsel before considering a claim. The board-vote procedure described here is not a substitute for that advice.

Who This Reaches

Most of CCIOA applies only to communities created on or after July 1, 1992. Section 38-33.3-303.5 is an exception: under § 38-33.3-117(1.9), it applies to common interest communities created on, before, or after July 1, 1992, for events on or after September 1, 2017. The CCIOA overview explains the pre-1992 framework for other sections.

The section reaches more than lawsuits. A “construction defect action” under § 303.5(1)(b) includes a civil action or arbitration proceeding against a construction professional for defect-caused damage, and related claims, including claims against board members, that arise from an alleged defect.

Step 1: The CCIOA Owner Notice

Decision point: counsel before the notice goes out. The notice sets the claim’s scope, starts statutory tolling, and is the record owners vote on. Its content is prescribed by statute and its drafting is counsel’s work.

At least five business days before mailing the owner notice, the association notifies each construction professional against whom the action is proposed of the meeting date and time (§ 303.5(1)(e)). The board then mails or delivers written notice to each owner and each such professional (§ 303.5(1)(c)(I)). Under § 303.5(1)(c)(III), the notice describes the action, identifying the alleged defects with reasonable specificity, the relief sought, and a good-faith estimate of the benefits and risks. It also carries ten statutory disclosures, which in summary cover:

possible increases in maintenance or repair costs and in assessments or special assessments;
that the claim will expire if not filed before the applicable legal deadlines;
that sellers may owe buyers a duty to disclose known defects;
the fee arrangement with the association’s attorneys;
a cap on legal costs that will not be exceeded without further board authority, and that the association may bear those costs if it does not prevail;
that the association may bear its own attorney fees, and possibly the opposing party’s, if it does not prevail;
that recovery may not be enough to repair the defects; and
possible effects on market value, refinancing, and buyers’ financing.

The association keeps a verified owner mailing list showing where each notice was sent and gives a copy to each construction professional at the meeting (§ 303.5(1)(c)(IV)). The statute does not require disclosure of privileged communications (§ 303.5(3)).

Step 2: The Owners’ Meeting

The meeting is held no less than 10 and no more than 15 days after the notice is mailed. A failure to hold it within that window voids the later vote, and no quorum is required (§ 303.5(1)(c)(II)). The construction professional is invited to address the owners, and the presentation may, but need not, include an offer to remedy under CDARA.

Privileged discussions with counsel about a claim fall within the executive-session topics for board meetings in § 308(4); see Colorado Board Meetings Under § 38-33.3-308. Owners’ meetings generally are covered in the Colorado owners’ meeting guide.

Step 3: The Owner Vote

Decision point: counsel before the vote closes and before filing. Whether the threshold was met, and which votes are excluded, are questions counsel works through on the association’s records.

The conclusion of the meeting opens the voting period. It ends 90 days after the meeting notice is mailed, or earlier when the association determines the action is approved or disapproved, and the whole sequence of notice, meeting and vote may not exceed 90 days (§ 303.5(1)(c)(II)).

Element	2024 C.R.S. text	After HB 25-1272
Approval required (§ 303.5(1)(d)(I)(A))	Owners of units to which a majority of votes in the association are allocated	At least 65% of votes in the association
Applies to	—	Construction-defect claims brought on or after August 6, 2025
Votes excluded from the count (§ 303.5(1)(d)(III))	Units owned by a development party or its affiliates; units owned by banking institutions unless a vote is actually received; units of an unaffected product type where the declaration does not share common expenses across product types; and units of owners deemed nonresponsive
Vote format and retention	One vote per owner, in any written format; records kept until the action concludes, including appeals

The exclusions matter because the threshold is a share of the votes in the association, not of votes cast, but the statute removes several categories from the calculation. Whether a particular owner may be treated as nonresponsive is a fact question: if challenged, a court considers whether the board made diligent efforts to reach the owner, and may consider returned mail, residence, and the use of e-mail or phone contacts (§ 303.5(1)(d)(III)(D)).

If the association files, it files the verified mailing list and vote records with the forum under seal (§ 303.5(1)(c)(IV)). The section is expressly non-severable (§ 303.5(4)). Records of construction-defect claims and settlement amounts are association records under § 38-33.3-317(1); see Colorado HOA Records.

Exceptions

Under § 303.5(1)(d)(I)(A), owner approval is not required when:

the alleged defect pertains to a facility intended and used for nonresidential purposes and the cost to repair it does not exceed $50,000; or
the association itself is the contracting party for the labor, services or materials.

HB 25-1272 kept both exceptions. Whether a given claim fits either is a question for counsel.

The CDARA Notice of Claim

Decision point: counsel before a notice of claim is sent. The notice of claim starts CDARA’s inspection-and-offer process and affects tolling.

CDARA’s process (§ 13-20-803.5) runs alongside the CCIOA procedure:

No later than 75 days before filing (90 days for commercial property), the claimant sends a written notice of claim by certified mail, return receipt requested, or personal service (§ 803.5(1)).
The professional may request an inspection within 30 days of service (§ 803.5(2)).
The professional may offer to settle or remedy within 30 days after the inspection (45 days for commercial property) (§ 803.5(3)). An offer not accepted in writing within 15 days is deemed rejected (§ 803.5(4)).

HB 25-1272 amended § 13-20-803.5 without changing those day counts, apart from a cross-reference to the new program rules in § 13-20-803.3(9). It added a duty for construction professionals other than architects and engineers to provide listed documents (plans, specifications, soil reports, maintenance recommendations, subcontractor information, third-party inspection records and insurance policies) by the earlier of a settlement offer or 60 days after notice of the claim, with a parallel list for architects and engineers (§ 803.5(3.5), (3.7)).

Time Limits and Tolling

Under § 13-80-104(1), an action against architects, contractors, builders, engineers and inspectors must be brought within the period set in § 13-80-102 after the claim arises, and in no case more than six years after substantial completion, subject to § 13-80-104(2). A claim arises when the claimant discovers, or in the exercise of reasonable diligence should have discovered, the physical manifestations of the defect. The length of the § 13-80-102 period is not stated here; confirm it with counsel.

Two tolling rules interact with the governance process:

CCIOA vote tolling (§ 303.5(1)(d)(II)). Limitations and repose periods for defects described with reasonable specificity in the owner notice are tolled from the date the notice is mailed until the voting period ends or the action is approved or disapproved. This tolling applies once and adds no more than 90 days.
CDARA tolling (§ 13-20-805). A notice of claim sent within the limitations period tolls it until 60 days after the notice-of-claim process is complete. HB 25-1272 added tolling for up to one year while a defect is being mitigated.

How these periods stack for a particular claim is counsel’s analysis. Tolling is limited in length and scope, so the governance steps still consume calendar time that matters.

What Else HB 25-1272 Changed

Use of proceeds (§ 38-33.3-303.5(5)). An executive board that is successful under a construction-defect claim or settlement must first use the net monetary damages or net proceeds to repair the defect.
Multifamily construction incentive program. From January 1, 2026, a builder of attached multifamily housing of two or more units may opt into a program by providing a warranty, having a third-party inspection performed, and recording a notice of election (§ 13-20-803.3(1)). For claims against participating builders (“program claims”), the claimant has a duty to mitigate before filing and must certify mitigation in the complaint (§ 13-20-803.5(1)(b)–(d)).
Insurer conduct. An insurer may not cancel, deny or reduce a construction professional’s coverage because the professional offered to repair or settle under CDARA (§ 13-20-803.5(13)).

What the Courts Have Said

Heritage Village Owners Ass’n v. Golden Heritage Investors, Ltd., 89 P.3d 513 (Colo. App. 2004). The court held that the association had standing under § 38-33.3-302(1)(d) to assert individual owners’ claims for defects affecting their units (windows, decks, floor slabs). The defect statutes have changed substantially since 2004, so the case is read here as a standing precedent only.
Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., 2017 CO 69. The Colorado Supreme Court held that a declaration provision requiring the declarant’s consent to amend the arbitration provision was consistent with CCIOA and enforceable, so the owners’ attempt to remove the arbitration provision without that consent was ineffective. It also held that the Colorado Consumer Protection Act does not preclude arbitration of the association’s claims under that act.

Each holding describes the record and statutory text before that court. Neither decides any other association’s claim. Governing-document amendment is covered in Amending the Governing Documents: The Power That Belongs to the Members.

Common Mistakes & Pitfalls

Pitfall 1: Treating the decision as the board’s alone. Section 303.5 makes owner approval a condition of instituting a defect action, including arbitration, outside the two statutory exceptions.

Pitfall 2: Planning around the old threshold. For claims brought on or after August 6, 2025, the statute requires at least 65% of votes in the association, calculated with the § 303.5(1)(d)(III) exclusions.

Pitfall 3: Missing the meeting window. A meeting held outside the 10-to-15-day window voids the vote.

Pitfall 4: Assuming tolling covers everything. CCIOA vote tolling applies once, adds no more than 90 days, and covers only defects described with reasonable specificity in the notice.

Frequently Asked Questions

Does a Colorado HOA board need owner approval to file a construction-defect action?

Generally, section 38-33.3-303.5 requires it, with two statutory exceptions. Before the executive board institutes a construction-defect action, the statute generally requires written notice to every owner and to each construction professional against whom the action is proposed, an owners’ meeting with prescribed disclosures, and owner approval within a voting period that ends no later than 90 days after the notice is mailed. HB 25-1272, effective August 6, 2025, raised the approval threshold from a majority to at least 65% of the votes in the association, for construction-defect claims brought on or after that date. Associations typically engage counsel before considering a claim.

What does the owner notice for a construction-defect vote have to disclose?

Section 38-33.3-303.5(1)(c)(III) requires a description of the action that identifies the alleged defects with reasonable specificity, the relief sought, and a good-faith estimate of the benefits and risks, plus a list of statutory disclosures. The disclosures cover, among other things, assessments, filing deadlines, seller disclosure duties, attorney fees and cost caps, fee-shifting risk, market value and financing. Preparing the notice is work for the association’s counsel.

Does the owners’ meeting on a construction-defect claim need a quorum?

Section 38-33.3-303.5(1)(c)(II) provides that a quorum is not required. The meeting must be held no less than 10 and no more than 15 days after the notice is mailed, and a failure to hold it within that window voids the later vote. The construction professional is invited to attend and may, but need not, present an offer to remedy.

What is the CDARA notice of claim?

Under section 13-20-803.5(1) of the Construction Defect Action Reform Act, a claimant generally must send a written notice of claim to the construction professional by certified mail, return receipt requested, or personal service, no later than 75 days before filing an action, or 90 days for commercial property. The professional may request an inspection within 30 days of service and may offer to settle or remedy within 30 days after the inspection, or 45 days for commercial property. Whether and when to send a notice of claim is a decision for the association and its counsel.

What time limits apply to a Colorado construction-defect claim?

Section 13-80-104(1) generally requires an action against architects, contractors, builders, engineers and inspectors to be brought within the period set in section 13-80-102 after the claim arises, and in no case more than six years after substantial completion, subject to section 13-80-104(2). Tolling rules in section 13-20-805 and section 38-33.3-303.5(1)(d)(II) also apply. How these limits apply to a particular claim is a question for counsel.

How must a board use money it recovers on a defect claim?

HB 25-1272 added section 38-33.3-303.5(5), which provides that an executive board that is successful under a construction-defect claim or settlement must first use the net monetary damages or net proceeds to repair the construction defect.

Key Takeaways

Two tracks: CDARA’s notice of claim to the professional (§ 13-20-803.5) and CCIOA’s owner notice, meeting, and vote (§ 38-33.3-303.5).
Section 303.5 reaches all Colorado common interest communities for events from September 1, 2017 (§ 117(1.9)), and covers arbitration as well as lawsuits.
The meeting falls 10 to 15 days after notice, needs no quorum, and the professional may present an offer.
Approval: at least 65% of votes in the association, with statutory exclusions, for claims brought on or after August 6, 2025.
Net recoveries go first to repairing the defect (§ 303.5(5)).
Outer limit: six years after substantial completion, subject to § 13-80-104(2) and statutory tolling.
Associations typically engage counsel before a notice of claim, before the owner notice, and before filing.

References & Sources

C.R.S. § 38-33.3-303.5 — Construction defect actions; disclosure; approval by unit owners. Colorado Revised Statutes 2024, Title 38 (OLLS)
C.R.S. § 38-33.3-117(1.9) — Application of § 303.5 to all common interest communities from September 1, 2017.
C.R.S. §§ 13-20-801 to -808 — Construction Defect Action Reform Act, including § 13-20-803.5 (notice of claim) and § 13-20-805 (tolling). Colorado Revised Statutes 2024, Title 13 (OLLS)
C.R.S. § 13-80-104 — Limitation of actions against architects, contractors, builders, engineers, inspectors.
C.R.S. § 38-33.3-317(1) — Association records, including construction-defect claims and settlements.
HB 25-1272 — Construction Defects & Middle Market Housing (Session Laws 2025, ch. 183; signed May 12, 2025; effective August 6, 2025; applies to claims brought on or after the effective date). leg.colorado.gov/bills/hb25-1272 · signed act
Heritage Village Owners Ass’n v. Golden Heritage Investors, Ltd., 89 P.3d 513 (Colo. App. 2004).
Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., 2017 CO 69, 395 P.3d 788.

Related Resources & Additional Reading from the CIC-SC Library

Treat a defect claim as a governance project first.
The CIC-SC Board Operating Standard in the Open Library covers owner communication, decision records, and board process. Explore the Colorado resource hub.

Tags: C.R.S. § 38-33.3-303.5 · Colorado construction defect · CDARA · § 13-20-803.5 notice of claim · owner approval · 65% vote · HB 25-1272 · § 13-80-104 · Vallagio · Heritage Village · CCIOA

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