Policy for Collecting HOA Dues Policy # 3

1. Purpose: This policy outlines the procedures for the collection of Homeowners Association (HOA) dues in accordance with the Colorado Common Interest Ownership Act (CCIOA).

2. Scope This policy applies to all homeowners within the HOA jurisdiction and covers the collection, enforcement, and management of dues.

3. Collection Procedures

a. Assessment of Dues

The HOA Board will determine the amount of dues annually. The dues shall be assessed in a manner consistent with the HOA's Declaration and By-Laws.

A written notice detailing the amount due, the payment schedule, and any applicable late fees must be provided to homeowners at least 30 days before the due date.

b. Payment Terms

Dues are payable on an annual basis.

Payments are to be made by check, electronic transfer, or any other method approved by the Board.

c. Late Payments

With regard to a unit owner’s delinquency in paying assessments, fines, or fees, an association shall: {reference C.R.S. 38-33.3-209.5}

(I) First contact the unit owner to alert the unit owner of the delinquency before taking action in relation to the delinquency pursuant to subsection (1.7)(a)(II) of this section and shall maintain a record of any contacts, including information regarding the type of communication used to contact the unit owner and the date and time that the contact was made. Any contacts that a community association manager or a property management company makes on behalf of an association pursuant to this subsection (1.7)(a) is deemed a contact made by the association and not by a debt collector as defined in section 5-16-103 (9). A unit owner may identify another person to serve as a designated contact for the unit owner to be contacted on the unit owner’s behalf for purposes of this subsection (1.7)(a)(I). A unit owner may also notify the association if the unit owner prefers that correspondence and notices from the association be made in a language other than English. If a preference is not indicated, the association shall send the correspondence and notices in English. The unit owner and the unit owner’s designated contact must receive the same correspondence and notices anytime communications are sent out; except that the unit owner must receive the correspondence and notices in the language for which the unit owner has indicated a preference, if any. An association may determine the manner in which a unit owner may identify a designated contact. In contacting the unit owner or a designated contact, an association shall send the same type of notice of delinquency required to be sent pursuant to subsection (5)(a)(V) of this section, including sending it by certified mail, return receipt requested, and physically post a copy of the notice of delinquency at the unit owner’s unit. In addition, the association shall contact the unit owner by one of the following means:

(A) First-class mail;

(B) Text message to a cellular number that the association has on file because the unit owner has provided the cellular number to the association; or

(C) E-mail to an e-mail address that the association has on file because the unit owner has provided the e-mail address to the association.

(II) Refer a delinquent account to a collection agency or attorney only if a majority of the executive board votes to refer the matter in a recorded vote at a meeting conducted pursuant to section 38-33.3-308 (4)(e). A community association management or property management company acting on behalf of the association shall not refer a delinquent account to a collection agency or an attorney unless a majority of the executive board votes to refer the matter in a recorded vote at a meeting conducted pursuant to section 38-33.3-308 (4)(e).

4. Enforcement of Collection

a. Delinquency Notification

Homeowners with overdue dues will receive a written notice of delinquency 15 days after the grace period expires. This notice will include the amount due, any late fees, and a deadline for payment. The HOA may also include interest on the past-due common expense assessments at the rate set by the association, but not exceeding 8% per year. (Colo. Rev. Stat. § 38-33.3-315(2)).

b. Collection Actions

If payment is not received within 30 days of the delinquency notice, the HOA may initiate further collection actions, including but not limited to:

Referral to a collection agency.

Legal action for the recovery of dues, as permitted under CCIOA. Note: In 2024, a new Colorado law (House Bill 1337) limited the attorneys' fees an HOA can charge to 50% of the assessments and any money owed to the HOA or $5,000, whichever is less.

5. Legal Compliance

All collection practices will comply with the provisions of the Colorado Common Interest Ownership Act (CCIOA), specifically Colo. Rev. Stat. § 38-33.3-316, which governs the collection of assessments.

The HOA will ensure that any legal actions or collection efforts adhere to state laws and regulations.

6. Records and Reporting

The HOA will maintain accurate records of all due’s payments and delinquencies.

Regular reports on the status of dues collection and outstanding accounts will be provided to the Board.

7. Review and Amendments

This policy will be reviewed annually and may be amended by the Board as needed to ensure compliance with changes in the CCIOA or other applicable laws.