Legal Framework · Community Operations · Colorado

Metro Districts and HOAs: The Two Governments Behind a Colorado Subdivision

In many newer Colorado neighborhoods, two different bodies make decisions about the same streets, parks and covenants. One is the homeowners association, a private corporation governed by its declaration and the Common Interest Ownership Act. The other is a metropolitan district, a unit of local government organized under Title 32 that can levy property taxes and issue bonds. Knowing which body owns which decision saves a board from answering questions that belong to someone else.

Educational notice. This information is educational in nature and should not be construed as legal advice. Statutory references are to the Colorado Revised Statutes as published by the Office of Legislative Legal Services (C.R.S. 2024), checked against the enrolled text of HB 25-1219 (effective August 6, 2025); later amendments are possible. Which entity holds which power in a particular community depends on its service plan, declaration and agreements; consult qualified Colorado counsel for application to a specific community. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.

The Short Version

• Different kinds of entity. A metropolitan district is a special district, a “quasi-municipal corporation and political subdivision” under the Special District Act (C.R.S. §§ 32-1-101, 32-1-103(20)). An HOA is a private association, usually governed by the Colorado Common Interest Ownership Act (CCIOA, C.R.S. 38-33.3).
• Taxes, not assessments. A metro district may levy property taxes and issue bonds (§ 32-1-1101(1)). An HOA levies assessments under a budget owners may veto (§ 38-33.3-303(4)).
• Public meetings, public elections. District meetings are noticed under the state open meetings law (§ 32-1-903(2)). Directors are elected by eligible electors in May of odd-numbered years (§ 32-1-103(5), (17)).
• Covenants belong to the HOA unless the documents say otherwise. A district may enforce covenants and run design review only by contract with the master association or where the declaration names it (§ 32-1-1004(8)). Since August 7, 2024, a district that does so must follow the fine, hearing and no-foreclosure rules in § 32-1-1004.5.

This matters when an owner brings a street, a mill levy, or a design-review denial to the HOA board and the decision actually belongs to the district, or the other way around.

What a Metropolitan District Is

The Special District Act declares that special districts “will serve a public use” (§ 32-1-102(1)) and defines a special district as “any quasi-municipal corporation and political subdivision organized or acting pursuant to the provisions of this article” (§ 32-1-103(20)). That status is the core difference from an HOA. A district exercises governmental powers given by statute and its approved service plan. An HOA exercises powers given by its declaration, articles and bylaws, the Colorado Revised Nonprofit Corporation Act, and CCIOA.

A metropolitan district is a special district that provides two or more of these services: fire protection; mosquito control; parks and recreation; safety protection; sanitation; solid waste; street improvement; television relay and translation; transportation; and water (§ 32-1-103(10); § 32-1-1004(2)). The Act also lets a district furnish security services, but only after written notice to, consultation with, and written consent of local law enforcement and any master association authorized to furnish security in the area (§ 32-1-1004(7)).

How a District Is Formed

1. Service plan. Proponents submit a service plan, including a financial plan and proposed debt, to the county commissioners of each county involved (§ 32-1-202(1)(a), (2)). A district wholly inside one or more municipalities needs each municipality’s resolution of approval (§ 32-1-204.5(1)).
2. Caps in newer plans. A metro district service plan submitted to a municipality on or after January 1, 2024 must state the maximum mill levy for general obligation debt and the maximum debt, as set by the municipality (§ 32-1-204.5(3), added by SB 23-110). For plans submitted to county commissioners, HB 25-1219 added a statement of the maximum term of a debt-service mill levy on residential property for plans submitted on or after January 1, 2025 (§ 32-1-202(2)(o)).
3. Court petition and election. A petition is filed in district court (§ 32-1-301), and eligible electors vote on organization and the first directors (§ 32-1-305.5(2)).
4. Recording. Organization is not effective until the court’s decree is recorded with the county clerk and recorder (§ 32-1-105). Each district also records a public disclosure document and a boundary map (§ 32-1-104.8).

Who Governs the District

• Board and terms. The statute sets staggered first terms for five- and seven-member boards; after that, the basic term is generally four years (§ 32-1-305.5(2)–(3)). A quorum is more than one-half of the directors serving (§ 32-1-103(16)).
• Who votes. An “eligible elector” is a registered Colorado voter who lives in the district, or who (or whose spouse or civil union partner) owns taxable property there, whether or not the person lives there; a person obligated to pay taxes under a contract to buy taxable property in the district counts as an owner (§ 32-1-103(5)(a)–(b)).
• When they vote. The regular special district election is the Tuesday after the first Monday in May of odd-numbered years (§ 32-1-103(17)). Candidates self-nominate under § 1-13.5-303 (§§ 32-1-305.5(4), 32-1-809(1)(g)).

By contrast, CCIOA associations elect boards under their bylaws, with secret ballots for contested seats (§ 38-33.3-310(1)), and owners may remove a director by 67% of those present and voting at a meeting with a quorum (§ 38-33.3-303(8)). Neither statute’s election rules govern the other body.

Money: Mill Levies, Bonds and Disclosure

A special district board may levy ad valorem taxes on all taxable property in the district, subject to the limits the statute references (§ 32-1-1101(1)(a)); may levy taxes for reserve funds once it has incurred debt (§ 32-1-1101(1)(b)); and may issue bonds (§ 32-1-1101(1)(c)–(d)). An HOA has no taxing power; it funds itself through assessments under its declaration and budget.

Title 32 builds in several disclosures:

• Recorded disclosure document. Every district records, with a boundary map, a document stating its name and powers, noting that its service plan is available from the Division of Local Government, and stating that it may raise revenue by “issuing debt, levying taxes, and imposing fees and charges,” subject to article X, section 20 of the Colorado Constitution (§ 32-1-104.8(1)). Failure to record it does not invalidate the district or its debt (§ 32-1-104.8(2)).
• Annual notice to electors. No more than 60 days before and not later than January 15 each year, the board gives eligible electors a notice listing its office and contact person, directors and seats up for election, regular meeting times, the current mill levy and last year’s property-tax revenue, the next election date, and how to self-nominate (§ 32-1-809(1)), delivered by one of the methods in § 32-1-809(2).
• Seller disclosure. Before or at contract, a seller must give the buyer the district’s notice to electors, its service plan, a written statement of its debt authority and mill-levy caps, an estimate of the district’s property taxes for the year of sale, and the current county tax statement (§ 38-35.7-110(2)). The 2024 text limited this to sales of a newly constructed residence. HB 25-1219 repealed that definition and applied the requirement to an owner selling residential property in a metro district organized on or after January 1, 2000; it also added a required statement that the district’s debt, mill-levy and fee actions may increase costs to residents, and called for the tax estimate as a dollar amount, with a safe harbor if the seller provides the mill levy, the assessment ratio and a formula (§ 38-35.7-110(2)(c)(V), (2)(d), as amended).

Meetings, Websites and the Annual Meeting

• Open, noticed, quorum-only business. Notice of all meetings is given under C.R.S. § 24-6-402; any director may call a special meeting; official business is conducted only at meetings with a quorum, and those meetings are open to the public (§ 32-1-903(2)(a)).
• Remote meetings. Notice of a telephonic or electronic meeting must say how the public can attend (§ 32-1-903(2)(b)). Meetings held solely in person must be inside the district, in a county where it lies, or within 20 miles of its boundaries, unless waived by resolution (§ 32-1-903(1.5)).
• Announced actions. The notice must state the proposed action if the board intends to make a final decision to issue or refund general obligation debt, consolidate, dissolve, file a bankruptcy debt-adjustment plan, contract privately with a director, or skip a scheduled bond payment (§ 32-1-903(3)).
• Annual meeting. Since 2023, a metro district organized after January 1, 2000 that has residential units and is not inactive holds an annual meeting at which it takes no official action, reports on infrastructure projects and outstanding bonds, reviews year-to-date financials against the budget, and takes public questions (§ 32-1-903(6), added by SB 23-110).
• Budget comment. The board provides a public comment period at the meeting where it adopts the annual budget (§ 32-1-903(7)).
• Website. Metro districts organized by court decree after January 1, 2000 maintain a public website listing directors, the budget, the audit or audit exemption, the annual report, meeting dates, the call for nominations, election results and a boundary map, with the HB 25-1219 additions above (§ 32-1-104.5(3)(a)). Districts without power to levy property tax, and inactive districts, are exempt (§ 32-1-104.5(3)(d)).

CCIOA separately requires HOA board and committee meetings to be open to owners, lets owners speak before a board vote, and limits executive session to six listed topics (§ 38-33.3-308(2)–(4)). The two sets of rules come from different statutes; meeting one says nothing about compliance with the other.

Where the Lines Cross: Covenant Enforcement and Design Review

When a District May Enforce Covenants

A metro district board may furnish covenant enforcement and design review services only if (§ 32-1-1004(8)(a)):

• the master association (or similar body) and the district have entered into a contract defining each party’s duties, including which covenants the district may enforce, and the district’s enforcement does not exceed the powers in the declaration or rules; or
• the declaration, rules, or similar document names the district as the enforcement or design review entity.

The revenues used must come from the area served (§ 32-1-1004(8)(b)); the district may not enforce a covenant determined unenforceable as a matter of law (§ 32-1-1004(8)(c)); and it must follow § 32-1-1004.5 (§ 32-1-1004(8)(d)).

The 2024 Procedural Rules: § 32-1-1004.5

HB 24-1267 (effective August 7, 2024, applying to conduct on or after that date) added § 32-1-1004.5. It gives metro districts that enforce covenants a set of rules that resemble, but are not the same as, CCIOA’s § 38-33.3-209.5:

• Written fine policy. By January 1, 2025, a district must adopt a written fine policy and may fine only under it. The policy includes a fair and impartial fact-finding process, notice of the alleged violation, the cure and the timeline, and a schedule of fines for continuous or repetitive violations; at a minimum, the owner gets notice and a chance to be heard before an impartial decision-maker, one with no direct personal or financial interest in the outcome (§ 32-1-1004.5(1)(d), (2)(a)–(c)).
• Districts that do not enforce. A district that neither provides covenant enforcement nor has formed an owners’ association under § 38-33.3-301 cannot pursue other remedies to enforce its design review requirements and need not adopt the policies; if it later elects to enforce, the section applies (§ 32-1-1004.5(2)(d)).
• Liens, but no foreclosure for violations. Enforcement charges are a perpetual lien until paid, but the district may not foreclose a lien for amounts owed because of a covenant violation. By resolution at a public meeting held after notice to the owner, the board may certify certain delinquent charges to the county treasurer for collection like taxes (§ 32-1-1004.5(3)(b)).
• Attorney fees. The statute generally awards fees to the prevailing party in an action to enforce or defend an instrument, with a different rule when a court finds the owner did not commit the alleged violation (§ 32-1-1004.5(4)(b)–(c)).
• One-year limit on actions to enforce building restrictions, measured from when the district knew or reasonably should have known of the violation (§ 32-1-1004.5(4)(d)).
• Dispute policy and mediation. A written dispute policy by January 1, 2025, posted on the district’s required website or available on request; mediation is by agreement and either party may end it (§ 32-1-1004.5(5)).
• Protected uses. Notwithstanding the instrument, the district may not prohibit the uses listed in § 32-1-1004.5(6), including flags and signs, qualifying emergency-vehicle parking, defensible-space work under a registered plan, disability modifications, xeriscape and drought-tolerant landscaping (cross-referencing § 38-33.3-106.5(1)(i) and (1)(i.5)), rain barrels, and licensed family child care homes; and it may not effectively prohibit renewable energy devices or energy-efficiency measures or require flammable roofing (§ 32-1-1004.5(7)). Each item carries the statute’s own conditions and the reasonable-rule carve-outs it permits.

Metro District vs. HOA: Side by Side

Applicability: the CCIOA column describes the 2024 text for communities CCIOA fully governs. Communities created before July 1, 1992 are reached by §§ 209.4–209.7, 310.5 and 401 from January 1, 2006 (§ 38-33.3-117(1.5)), and by other sections only as § 117 lists them; confirm applicability with counsel.

Coordination Practices Boards Commonly Use

These are governance practices, not legal requirements:

• Keep the founding documents together. The district’s service plan and recorded disclosure document, the declaration, and any district–association agreement answer “who does what.” The service plan is available from the Division of Local Government (§ 32-1-104.8(1)(c)).
• Read the district’s annual notice and website, which list its board, meetings, mill levy and election dates (§§ 32-1-809, 32-1-104.5(3)).
• Attend the annual meeting and budget hearing, the statutory moments for public questions on infrastructure, bonds and the budget (§ 32-1-903(6)–(7)).
• Route owner questions to the right body. A welcome page explaining which entity owns which assets prevents complaints from going to the wrong board.
• Put shared responsibilities in writing. A written agreement is the vehicle the statute itself names for district covenant enforcement (§ 32-1-1004(8)(a)(I)), and written consent is required for district security services (§ 32-1-1004(7)).
• Watch dual roles. A person serving on both boards is subject to the district’s notice rule for contracts with a director (§ 32-1-903(3)) and the association’s conflict-of-interest rules (§ 38-33.3-310.5); both may be relevant.

What Is Still Being Studied

HB 23-1105 (signed May 24, 2023) created a metropolitan district homeowners’ rights task force alongside an HOA task force. We have not reviewed the task force’s report or the act’s section citations, so this article does not describe its findings. The legislature has amended Title 32 for metro districts in several recent sessions (SB 21-262, SB 23-110, HB 24-1267, HB 25-1219). This article reflects the C.R.S. 2024 text plus the enrolled text of HB 25-1219; check for later amendments before relying on a specific requirement.

Frequently Asked Questions

Is a Colorado metropolitan district the same thing as an HOA?

No. A metro district is a special district, a quasi-municipal corporation and political subdivision (§ 32-1-103(20)). An HOA is a private association governed by its declaration and, for most communities, CCIOA. They have separate boards, budgets, elections and legal rules.

Can a metro district enforce HOA covenants?

Section 32-1-1004(8) allows it only by contract with the master association or where the declaration or rules name the district as the enforcement or design review entity. A district doing so since August 7, 2024 is subject to the fine-policy, hearing and no-foreclosure rules of § 32-1-1004.5. Whether that is the arrangement in a particular community depends on its documents and is a question for counsel.

Where do metro district costs show up for an owner?

As a property-tax mill levy, separate from HOA assessments (§ 32-1-1101(1)(a)). The annual notice to electors states the current mill levy and last year’s property-tax revenue (§ 32-1-809(1)(e)).

Are metro district board meetings open to the public?

Section 32-1-903(2)(a) generally requires notice under § 24-6-402, a quorum for official business, and meetings open to the public.

Can the HOA board make decisions about district-owned streets or parks?

Not by virtue of being the HOA board. The district exercises its own statutory powers over the services in its service plan. Whether the association has any role depends on the documents and agreements in that community, which counsel can review.

Key Takeaways

• A metropolitan district is a unit of local government under the Special District Act; an HOA is a private association under its declaration and CCIOA.
• Metro districts provide two or more statutory services, levy property taxes and issue bonds; HOAs levy assessments under an owner-vetoable budget.
• District elections are public elections in May of odd-numbered years; district meetings are noticed under the state open meetings law.
• Post-2000 residential metro districts hold an annual meeting and keep a website; every district sends an annual notice to electors by January 15.
• A metro district may enforce covenants only by contract or where the declaration names it, and since August 7, 2024 must follow § 32-1-1004.5.
• HB 25-1219 (effective August 6, 2025) expanded metro district website, contact, annual-meeting notice and seller-disclosure requirements.

References & Sources

1. C.R.S. Title 32, Article 1 (Special District Act), C.R.S. 2024: §§ 32-1-101, -102, -103(5), (10), (16), (17), (20), -104.5(3), -104.8, -105, -202, -204.5, -301, -305.5, -809, -903, -1004, -1004.5, -1101. content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-32.pdf
2. C.R.S. § 38-35.7-110 (metro district property-tax disclosure) and CCIOA, C.R.S. §§ 38-33.3-117, -209.5, -303(4), -303(8), -308, -310, -310.5, -401, C.R.S. 2024. content.leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.pdf
3. HB 24-1267, effective August 7, 2024 (adding § 32-1-1004.5 and § 32-1-1004(8)(d)), per C.R.S. 2024 source notes.
4. SB 23-110, effective August 7, 2023 (§§ 32-1-204.5(3), 32-1-903(6)–(7)), per C.R.S. 2024 source notes.
5. HB 25-1219, enrolled text (amending §§ 32-1-104.5, 32-1-202, 32-1-903 and 38-35.7-110), signed May 29, 2025, effective August 6, 2025. content.leg.colorado.gov/sites/default/files/documents/2025A/bills/2025a_1219_enr.pdf
6. HB 23-1105, HOA and Metropolitan District Homeowners’ Rights Task Forces, signed May 24, 2023. leg.colorado.gov/bills/hb23-1105

Related Resources & Additional Reading from the CIC-SC Library

• CDD vs. MUD: Understanding the Governmental Entities Behind Modern Communities — the Florida and Texas counterparts.
• Colorado’s Common Interest Ownership Act (CCIOA): Overview for Board Members — the HOA side of this comparison.
• The Responsible Governance Policies Every Colorado Association Must Adopt — the HOA-side counterpart to § 32-1-1004.5.
• Architectural Review in Colorado — design review under the declaration and CCIOA.

Tags: Colorado metropolitan district · metro district vs HOA · Special District Act · C.R.S. Title 32 · § 32-1-1004(8) · § 32-1-1004.5 · HB 24-1267 · HB 25-1219 · mill levy · notice to electors · CCIOA · Colorado HOA governance

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 governance 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.