Colorado HOA fine rules

For a violation other than one that threatens the public safety or health, the association "SHALL, THROUGH CERTIFIED MAIL, RETURN RECEIPT REQUESTED, PROVIDE THE UNIT OWNER WRITTEN NOTICE, IN ENGLISH AND IN ANY LANGUAGE THAT THE UNIT OWNER HAS INDICATED A PREFERENCE FOR CORRESPONDENCE AND NOTICES ..., OF THE VIOLATION INFORMING THE UNIT OWNER THAT THE UNIT OWNER HAS THIRTY DAYS TO CURE THE VIOLATION" (Colo. Rev. Stat. § 38-33.3-209.5(1.7)(b)(III)(A)). For a violation the association reasonably determines threatens the public safety or health, it "SHALL PROVIDE THE UNIT OWNER WRITTEN NOTICE ... OF THE VIOLATION INFORMING THE UNIT OWNER THAT THE UNIT OWNER HAS SEVENTY-TWO HOURS TO CURE THE VIOLATION OR THE ASSOCIATION MAY FINE THE UNIT OWNER" (§ 38-33.3-209.5(1.7)(b)(II)(A)). Separately, the association's written fine policy must require "NOTICE REGARDING THE NATURE OF THE ALLEGED VIOLATION, THE ACTION OR ACTIONS REQUIRED TO CURE THE ALLEGED VIOLATION, AND THE TIMELINE FOR THE FAIR AND IMPARTIAL FACT-FINDING PROCESS" (§ 38-33.3-209.5(2)(c)(I)). (Capitalized text is new statutory language as enacted; the capitalization is a drafting convention, not part of the meaning.)

"THE UNIT OWNER HAS THIRTY DAYS TO CURE THE VIOLATION OR THE ASSOCIATION, AFTER CONDUCTING AN INSPECTION AND DETERMINING THAT THE UNIT OWNER HAS NOT CURED THE VIOLATION, MAY FINE THE UNIT OWNER; HOWEVER, THE TOTAL AMOUNT OF FINES IMPOSED FOR THE VIOLATION MAY NOT EXCEED FIVE HUNDRED DOLLARS" (Colo. Rev. Stat. § 38-33.3-209.5(1.7)(b)(III)(A)). "AN ASSOCIATION SHALL GRANT A UNIT OWNER TWO CONSECUTIVE THIRTY-DAY PERIODS TO CURE A VIOLATION BEFORE THE ASSOCIATION MAY TAKE LEGAL ACTION AGAINST THE UNIT OWNER FOR THE VIOLATION" (§ (1.7)(b)(III)(B)). If the owner gives notice of cure with visual evidence, "THE VIOLATION IS DEEMED CURED ON THE DATE THAT THE UNIT OWNER SENDS THE NOTICE"; otherwise the association "SHALL INSPECT THE UNIT WITHIN SEVEN DAYS AFTER THE EXPIRATION OF THE THIRTY-DAY CURE PERIOD" (§ (1.7)(b)(IV)-(V)). A violation the association reasonably determines threatens the public safety or health carries a seventy-two hour cure period instead (§ (1.7)(b)(II)(A)).

Colo. Rev. Stat. § 38-33.3-209.5(2) — "the association may not fine any unit owner for an alleged violation unless" it "has adopted and follows a written policy governing the imposition of fines" (§ (2)(a)) that includes "a fair and impartial fact-finding process concerning whether the alleged violation actually occurred and whether the unit owner is the one who should be held responsible for the violation. This process may be informal but shall, at a minimum, guarantee the unit owner notice and an opportunity to be heard before an impartial decision maker" (§ (2)(b)). The statute sets no fixed number of days within which the owner must request that process; the fixed day counts in the section are the cure periods — two consecutive thirty-day periods for ordinary violations and seventy-two hours for public safety or health violations (§ (1.7)(b)(II)-(III)) — and the seven days within which the association must inspect after a thirty-day cure period expires (§ (1.7)(b)(V)). A disciplinary hearing regarding a unit owner may be held in executive session, but "A UNIT OWNER WHO IS THE SUBJECT OF A DISCIPLINARY HEARING ... MAY REQUEST AND RECEIVE THE RESULTS OF ANY VOTE TAKEN AT THE RELEVANT MEETING" (§ 38-33.3-308(4)(e)).

"THE TOTAL AMOUNT OF FINES IMPOSED FOR THE VIOLATION MAY NOT EXCEED FIVE HUNDRED DOLLARS" for a violation other than one that threatens the public safety or health (Colo. Rev. Stat. § 38-33.3-209.5(1.7)(b)(III)(A)). "AN ASSOCIATION SHALL NOT IMPOSE THE FOLLOWING ON A DAILY BASIS AGAINST A UNIT OWNER: (A) LATE FEES; OR (B) FINES ASSESSED FOR VIOLATIONS OF THE DECLARATION, BYLAWS, COVENANTS, OR OTHER GOVERNING DOCUMENTS" (§ (1.7)(b)(I)); for an uncured public safety or health violation the association "MAY IMPOSE FINES ON THE UNIT OWNER EVERY OTHER DAY" (§ (1.7)(b)(II)(B)). An association shall not "FORECLOSE ON AN ASSESSMENT LIEN IF THE DEBT SECURING THE LIEN CONSISTS ONLY OF" fines, or of collection costs or attorney fees "ONLY ASSOCIATED WITH ASSESSED FINES" (§ 38-33.3-209.5(8)(c)).

"Subject to subsections (3), (3.5), and (4) of this section, all records maintained by the association must be available for examination and copying by a unit owner or the owner's authorized agent" (Colo. Rev. Stat. § 38-33.3-317(2)(a)). The association may require "a written request, describing with reasonable particularity the records sought, at least ten days prior to inspection or production of the documents," and "the association may not condition the production of records upon the statement of a proper purpose."