Colorado Law · Budgets & Assessments

Special Assessments in Colorado: What CCIOA Says, and What It Leaves to the Declaration

Florida's statutes spell out how a special assessment must be noticed and spent. Colorado's Common Interest Ownership Act does not. For a Colorado board, the authority to levy a charge outside the annual budget generally starts in the declaration. CCIOA's general rules on budgets, disclosure and collections then shape how the charge is handled and collected.

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 Colorado General Assembly at the time of writing; later amendments are possible. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.

Currency: verified against the Colorado Revised Statutes 2024 (Office of Legislative Legal Services printout) and the enrolled 2022–2025 bills named in the text, each with its effective date. Later amendments are possible.

The Short Version

• CCIOA has no special-assessment section. The text CICSC reviewed sets no stand-alone notice, vote or use-of-funds procedure for special assessments, unlike Florida’s statutes. The declaration and bylaws are the starting point.
• The general rules still apply. These include annual assessments based on an annual budget and the 8% interest cap (§ 38-33.3-315), the budget-ratification procedure (§ 303(4)), and disclosure of current regular and special assessments (§ 209.4(2)).
• Two specific charges are addressed by statute. One is allocating insurance deductibles after a loss (§ 313(6)). The other is the 2025 rule that construction-defect recoveries go first to repair (§ 303.5(5)).
• Collection limits are the same as for any assessment. They include the collection policy, the recorded board vote before referral, payment plans, and the foreclosure limits.

Where the Authority Comes From

Under § 38-33.3-303(1)(a), the executive board may act for the association in all instances except as limited by the declaration, the bylaws or § 303(3). Under § 315(1), assessments are made at least annually, based on a budget adopted at least annually. The statute map CICSC relies on verifies no further CCIOA provision that authorizes, limits or sequences a special assessment. So the questions that most often decide a special assessment are answered in the governing documents. Those questions include:

• whether the board may levy one alone or needs an owner vote
• whether there is a dollar or percentage cap
• how the charge is allocated among units
• how and when it is due

This is a structural difference from Florida, whose notice and use-of-funds rules do not carry over.

The common counsel question: does § 303(4) apply?

Section 303(4)(a) requires the board to deliver a budget summary within 90 days after adopting a proposed budget and to set an owners’ meeting. The budget is then deemed approved unless a majority of all owners vetoes it, quorum or not. Section 308(1) requires an owners’ meeting notice to state any budget changes. A frequent question is whether a special assessment, or the budget change that funds one, must go through that procedure. CICSC’s sources do not resolve it, and this article takes no position: the answer turns on the declaration and on how the statutory text applies to the specific charge. Boards typically put that question to association counsel before they adopt a special assessment. See HOA Assessment Authority in Colorado for the ratification procedure itself.

Disclosure: Special Assessments Are Named in § 209.4

The annual disclosure is one of the few places CCIOA refers to special assessments by name. Within 90 days after turnover and within 90 days after each fiscal year-end, the association must make available:

• its current operating budget
• its current regular and special assessments by unit type
• annual financial statements, including amounts held in reserve
• the results of its most recent audit or review

The list also includes the other items in § 209.4(2). Disclosure may be by website (with mail or e-mail notice of the address), by a literature binder at the principal office, or by mail or personal delivery, at no cost to owners (§ 209.4(3)).

Owners can also seek financial oversight through § 303(4)(b). An audit is required if annual revenues or expenditures are at least $250,000 and owners of at least one-third of the units request it. A review is required on request of one-third of owners. Owners also have records rights under § 317, which include detailed records of receipts and expenditures (§ 317(1)(a)). In Seaman v. Heather Gardens Ass’n, 2023 COA 125, the Court of Appeals held that bank statements “may constitute” such records.

Two Charges CCIOA Does Address

Insurance deductibles (§ 313(6))

An association may adopt written, nondiscriminatory policies on claims and deductibles. To the extent it settles claims for damage to real property, it may assess deductibles it paid to negligent owners who caused the loss or who benefited from the repair, and, where more than one unit is damaged, may in its reasonable discretion assess each owner a pro rata share (§ 38-33.3-313(6)). How that applies to a given loss depends on the adopted policy and is a question for counsel. CICSC does not advise on coverage levels, deductibles or claims posture. Pre-1992: § 313 is not on the § 117 list.

Construction-defect recoveries (§ 303.5(5), HB25-1272)

HB25-1272 was signed May 12, 2025 and took effect August 6, 2025 (Session Laws 2025, ch. 183). It added § 38-33.3-303.5(5). A board that recovers on a construction-defect claim or settlement must first use the net damages or proceeds to repair the defect. The same act raised the owner approval needed before a board files a defect action from a majority to at least 65% of association votes (§ 303.5(1)(d)(I)(A)) (certain votes, such as those of units owned by development parties and of owners deemed nonresponsive, are excluded from the count under § 303.5(1)(d)(III)). In the 2024 text, the owner notice § 303.5(1)(c)(III) requires must disclose that the alleged defects might increase maintenance or repair costs or cause an increase in assessments or special assessments. The procedure is not a substitute for counsel; associations typically engage counsel before considering a claim. See Before a Colorado HOA Sues the Builder.

When a Special Assessment Goes Unpaid

CICSC’s sources describe Colorado's collection rules for assessments generally, not separately for special assessments. They are listed here as the statute’s terms. Whether they have been met on a particular account is a question for association counsel; owners facing collection commonly consult their own attorney, and the DORA HOA Information and Resource Center publishes general information.

The layers include:

• Interest cap. Interest is capped at 8% per year on assessments, fines and fees (§§ 315(2), 209.5(8)(a)).
• First contact. Before referral, the association sends a notice of delinquency by certified mail, plus two of the following: a phone call, a text or an e-mail (§ 209.5(1.7)(a)(I), as revised by HB24-1233).
• Board vote to refer. An account may be referred to a collection agency or attorney only by a majority board vote in a recorded vote at a meeting (§ 209.5(1.7)(a)(II)).
• Payment plans. Section 316.3 requires a good-faith effort to set up a plan of equal installments over at least 18 months, with listed exceptions. It may not foreclose while the owner complies with a plan (§ 316.3(3.5)). Payments apply first to assessments, then to fines and fees (§ 316.3(4)).
• Foreclosure limits. Section 209.5(8)(c) bars foreclosure on a lien whose debt consists only of fines or fine-related collection costs and attorney fees. Fees, late charges, attorney fees and interest may be part of the lien but are not subject to foreclosure (§ 316(1)(a)). Foreclosure also requires all of the following:
  • an assessment balance of at least six months of common-expense assessments, and a recorded board vote against the specific unit (§ 316(11))
  • a written offer of an 18-month repayment plan (§ 209.5(7))
  • for an owner-occupied principal residence, a prior personal judgment or one of the statutory exceptions (§ 316(10.5)–(10.6), HB24-1337, for debts accrued on or after August 7, 2024)
• 2025 additions. HB25-1043 took effect October 1, 2025 for enforcement actions begun on or after that date. It added a 30-day notice of intent to foreclose, new delinquency-notice advisements, and an owner’s motion to stay the auction so the unit can be listed at fair market value (C.R.S. § 38-38-109.5).
• Small claims. Disputes over assessments, fines or fees up to $7,500 may be filed in small claims court (§ 209.5(9)).

The full sequence is covered in Collections in Colorado and Colorado Assessment Liens and Foreclosure.

Pre-1992 Communities

For communities created before July 1, 1992, the § 117 schedule matters:

• §§ 316 and 316.3 apply from July 1, 1992.
• §§ 209.4–209.7 apply from January 1, 2006.
• The § 303(4)(a) budget-veto procedure applies from July 1, 2017.
• § 303.5 applies to all communities from September 1, 2017.
• § 315(1)–(2) and § 313 are not on the § 117 list. Only § 315(7) is.

For a pre-1992 community that has not opted in under § 118, the declaration carries more of the weight. See Colorado’s Common Interest Ownership Act: Overview.

Common Mistakes & Pitfalls

Frequently Asked Questions

Does Colorado law set a procedure for HOA special assessments?

The CCIOA text CICSC reviewed contains no stand-alone special-assessment procedure. The authority and the process generally come from the declaration and bylaws, alongside CCIOA’s general rules on budgets (§ 38-33.3-303(4)), assessments (§ 38-33.3-315), disclosure (§ 38-33.3-209.4) and collections. How those rules apply to a particular charge is a question for association counsel.

Must a Colorado special assessment go through the owner budget-veto procedure?

That is a common question for association counsel. The answer turns on the declaration and on how the § 38-33.3-303(4) budget procedure applies to the charge in question. CICSC does not answer it for any association.

What limits does Colorado law place on foreclosing for unpaid assessments?

CCIOA conditions foreclosure on assessment debt on several statutory requirements, including a balance of at least six months of common-expense assessments and a recorded board vote on the specific unit (§ 38-33.3-316(11)), a written 18-month repayment-plan offer (§ 38-33.3-209.5(7)), and, for a unit an individual owns as a principal residence, generally a prior personal judgment (§ 38-33.3-316(10.5), for debts accrued on or after August 7, 2024). Section 209.5(8)(c) bars foreclosure based on fines alone. Whether the conditions are met on a particular account is a question for association counsel.

Does a Colorado HOA have to disclose special assessments to owners?

Section 38-33.3-209.4(2) lists current regular and special assessments by unit type among the items the association makes available within 90 days after turnover and within 90 days after each fiscal year-end. Under § 209.4(3), disclosure may be by website with notice of the address, by a literature binder at the principal office, or by mail or personal delivery, at no cost to owners. How the disclosure rule applies to a specific association is a question for association counsel.

Can a Colorado HOA charge an insurance deductible or use a construction-defect recovery for other purposes?

Under § 38-33.3-313(6), an association may adopt written, nondiscriminatory claims and deductible policies and may assess deductibles it paid to negligent owners or owners who benefited from the repair, or a pro rata share where more than one unit is damaged. Under § 38-33.3-303.5(5), added by HB25-1272 effective August 6, 2025, a board that recovers on a construction-defect claim or settlement first uses the net proceeds to repair the defect. Application to a particular loss or claim is a question for association counsel.

Key Takeaways

• The CCIOA text CICSC reviewed has no special-assessment procedure. Authority and process start in the declaration and bylaws.
• Whether the § 303(4) budget-veto procedure applies to a given charge is a question for association counsel.
• Current special assessments are an annual-disclosure item under § 209.4(2).
• Deductible allocation (§ 313(6)) and repair-first use of defect recoveries (§ 303.5(5)) are the two charge-specific statutory rules.
• Collection of any unpaid assessment is subject to the 2022–2025 statutory layers.

References & Sources

1. C.R.S. § 38-33.3-303(1)(a), (4)(a)–(b) — Executive board; budget; audit and review. Colorado Revised Statutes 2024, Title 38 (OLLS). content.leg.colorado.gov — crs2024-title-38.pdf
2. C.R.S. § 38-33.3-315(1)–(2) — Assessments; interest.
3. C.R.S. § 38-33.3-308(1) — Owners’ meeting notice.
4. C.R.S. § 38-33.3-209.4(2)–(3) — Annual disclosure.
5. C.R.S. § 38-33.3-209.5(1.7)(a), (7), (8)(a), (8)(c), (9) — Collection procedures; foreclosure prerequisites; interest; fines; small claims.
6. C.R.S. § 38-33.3-313(6) — Claims and deductible policies.
7. C.R.S. § 38-33.3-316(1)(a), (10.5)–(10.6), (11) and § 38-33.3-316.3 — Lien; foreclosure limits; payment plans.
8. C.R.S. § 38-33.3-317(1)(a) — Records of receipts and expenditures.
9. C.R.S. § 38-33.3-303.5(1)(d)(I)(A), (5) — Construction-defect owner approval and use of proceeds, as amended by HB25-1272, Session Laws 2025, ch. 183 (eff. August 6, 2025). leg.colorado.gov/bills/hb25-1272
10. C.R.S. § 38-33.3-117 — Applicability to pre-1992 communities.
11. HB22-1137, Session Laws 2022, ch. 367. leg.colorado.gov/bills/hb22-1137
12. HB24-1233, Session Laws 2024, ch. 334. leg.colorado.gov/bills/hb24-1233
13. HB24-1337, Session Laws 2024, ch. 422. leg.colorado.gov/bills/hb24-1337
14. HB25-1043, Session Laws 2025, ch. 433 (eff. October 1, 2025). leg.colorado.gov/bills/hb25-1043
15. Seaman v. Heather Gardens Ass’n, 2023 COA 125.

Related Resources & Additional Reading from the CIC-SC Library

• HOA Assessment Authority in Colorado — budget ratification under § 38-33.3-303(4).
• Collections in Colorado — the required collection policy and payment plans.
• Before a Colorado HOA Sues the Builder — CDARA and the owner-consent rule.
• Is Your Colorado Association Compliant?

Tags: Colorado special assessment · CCIOA · § 38-33.3-315 · § 38-33.3-303(4) · annual disclosure · insurance deductible · HB25-1272 · HOA collections Colorado · 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 procedural 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.