Homeowners associations are governed by various documents that can confuse owners and even HOA board members. The nature of the HOA itself is often misunderstood. Here is a primer:

Common Interest Community. Colorado law uses the term “common interest community.” It comes from Colorado’s main statute regarding HOAs, called the “Colorado Common Interest Ownership Act,” or “CCIOA” (pronounced “Kiowa” like the Native American tribe). A common interest community is real estate described in the declaration in which, by owning a unit within the real estate, the owner is responsible for taking care of other real estate in the declaration. So, this definition includes the “traditional” single-family detached dwellings, but also condominiums, patio homes, and road associations.

Declaration. Every neighborhood with an HOA has a “declaration,” also known as the “covenants” or the “CCRs.” Colorado law uses the term “declaration.” The declaration is the document or documents that get recorded in the real property records where the neighborhood is located. The declaration must be signed by the developer and creates the common interest community. It will describe the actual real estate included in the community and will have other key provisions like the obligation of owners to pay assessments and restrictions on the individual lots. Amending the declaration can only be done with the consent of at least a majority of all the owners, up to 67%. This makes amending a declaration difficult.

Association. The association is the legal entity that does all the work to implement the declaration, such as collecting assessments, enforcing covenants, and taking care of “common elements,” that is, things like the pool, greenbelts, roads, etc. Usually a homeowners association is set up as a non-profit corporation, but it does not have to be. The association is not the common interest community itself. So, while people often say they “live in an HOA,” it would be more accurate to say that you “live in a neighborhood with an HOA.”

Bylaws. The bylaws is the document that governs the internal workings of the association. Typically, the bylaws describe the association’s board of directors, officer positions and duties, terms, elections, etc. The bylaws also provide procedures for having board meetings, annual member meetings, and special meetings. Usually bylaws can be changed via a vote by the board of directors of the association.

Responsible Governance Policies. Colorado law requires that HOAs have certain “responsible governance policies.” They include a policy regarding enforcement of the rules, and a policy regarding collection of assessments and fines. The Colorado legislature is constantly changing the law to make the enforcement and collection policies ever more complicated and burdensome. The board of directors can adopt or change these policies.

Rules and Regulations. An association is free to adopt rules, regulations, or policies regarding matters other than the responsible governance policies. An example would be rules regarding the pool, or the use of a lake. An association can also adopt rules or policies to clarify matters in the declaration, however, the association cannot adopt rules as a way of changing the declaration. If the rules are inconsistent with the declaration, the declaration will control.

Management company. Larger communities governed by a homeowners association usually hire a management company to handle some or nearly all of the association’s duties. The management company is not the HOA. Rather, it is HOA’s agent hired to act on behalf of the HOA.

Photo of Jeffrey Cullers Jeffrey Cullers

Colorado Dirt Law is maintained by Jeffrey Cullers, an attorney in northern Colorado. I completed my J.D. in 2008 at Southern Methodist University in Dallas, Texas. After briefly practing in Texas, I moved to Denver, Colorado to study natural resources and environmental law…

Colorado Dirt Law is maintained by Jeffrey Cullers, an attorney in northern Colorado. I completed my J.D. in 2008 at Southern Methodist University in Dallas, Texas. After briefly practing in Texas, I moved to Denver, Colorado to study natural resources and environmental law at the University of Denver Sturm College of Law, obtaining an LLM in 2010. I then practiced at law firms in both Colorado and Wyoming, focusing on property rights, federal land issues, and litigation. In 2015, I joined Herms & Herrera in Fort Collins, Colorado. Herms & Herrera is now Herms & Cullers. I have significant experience with easement and access disputes, homeowner association issues, and complex civil litigation.

Since I am a Colorado attorney, Colorado Dirt Law seeks to provide information and commentary regarding Colorado property right matters specifically, however, national matters and trends may come up as well. My passion for this practice area originates in the belief that strong private property rights, supported by a strong legal system, are essential to a free and economically productive society.