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It should not come as a surprise that many homeowners in Colorado live in common interest communities, like HOAs, POAs, condominium associations, and cooperatives. In fact, the Colorado HOA Information and Resource Center estimates that as of the end of 2024, approximately forty-six percent of Colorado’s population lives in a common interest community. Therefore, it is important for these people - and others interested in buying a home in a common interest community - to understand some of the fundamental documents that govern, control, and direct boards, management companies, and owners to live in and successfully manage a community.
Colorado law is clear: the relationship between homeowners and homeowners’ associations is a contractual relationship. The most effective way of understanding governing documents is that they set forth the terms of that contract. Therefore, in addition to understanding laws like the Colorado Common Interest Ownership Act (“CCIOA”) and the Colorado Nonprofit Corporation Act (“CNCA”), possessing copies of your governing documents, understanding your governing documents, and participating in the homeowner’s association process is essential.
Therefore, without further delay, a brief discussion of each of the governing documents will assist anyone that is looking for more information:
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Declaration of Covenants, Conditions, and Restrictions (also known as “Declaration” or “CC&Rs”): Colorado statutes define a declaration as any recorded instruments that create a common interest community, including any amendments to those instruments and also including, but not limited to, plats and maps. Section 38-33.3-205, C.R.S. sets forth a complete list of what must be included in the declaration. Generally, it should contain broad protective standards and restrictions for the community for which the rules, regulations and policies (each of which are discussed below) are intended to explain, clarify, and define in greater detail. The declaration should also provide how the association will allocate the allocated interests of each unit; specify the purpose and goals of the association; and, address any formalities regarding the transition from developer to owner control. Many associations share a copy of the declaration on a website, if the community has a website, or upon request by mail or email. In fact, the declaration and other governing documents are required to be shared with community members upon request. However, because the declaration is recorded with the Clerk and Recorder’s Office for the county or counties where the community is located, interested parties can obtain a copy of the declaration by contacting the Clerk and Recorder’s office, as well.
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Articles of Incorporation: Associations are treated like private corporations under Colorado law and most associations are organized as nonprofit corporations. If this is the case for your association, the Colorado Nonprofit Corporation Act is one of the relevant laws to know and understand. Section 7-121-401, C.R.S. defines Articles of Incorporation as meaning not only the original articles, but also “amended Articles of Incorporation, restated Articles of Incorporation, and other instruments, however designated, on file in the records of the secretary of state that have the effect of amending or supplementing in some respect the original or amended Articles of Incorporation…” The Articles of Incorporation must define the legal name, address and corporate status of the HOA. Section 7-122-102, C.R.S. provides for what else must be contained in the articles of incorporation. Articles of Incorporation may also contain provisions that define some of the functions of the association, as well as setting forth the general power and authority of the association. Since Articles of Incorporation are created and filed with the Colorado Secretary of State (“SOS”); if you do not have Articles of Incorporation, you may check with your board or the SOS.
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Bylaws: Bylaws are also a mandatory document for the association, but, unlike the CCRs, this document is not filed with the county. The original of this document also would have been prepared by the developer (with HOAs, we call the developer the "Declarant"). The Bylaws are terms that define how the association is going to function as a corporation. Bylaws will determine the number and terms of directors, frequency of elections, and any other procedures that are specific to the HOA. Those other procedures include procedures for providing notice, holding meetings and elections, as well as defining the roles and authority of the board.
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Governance Policies: Section 38-33.3.209.5, C.R.S. of CCIOA requires an association to adopt policies and procedures concerning multiple areas of association governance. There are currently nine required policies:
a. Collection Policy
b. Enforcement of Covenants Policy
c. Conflict of Interest Policy
d. Conduct of Meetings Policy
e. Adoption of Rules and Policies Policy
f. Investment of Reserves Policy
g. Alternative Dispute Resolution Policy
h. Inspection of Records Policy
i. Reserve Study Policy
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Rules and Regulations: The rules and regulations of an association are intended to explain, clarify and define the broad protective standards and restrictions contained in the declaration, in greater detail.
For more information:
On behalf of the HOA Center Information & Resource Center and the Division of Real Estate, thank you for reviewing this important HOA advisory.
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