Fines & PenaltiesCO
Challenging an HOA Fine in Colorado
By The HOARebel Team · June 2, 2026 · 2 min read
Colorado dramatically reshaped HOA fines in 2022. A Colorado association's power to fine is now hemmed in by a dollar cap, a required fair process, an interest limit, and a rule that fines alone cannot cost an owner the home. For your specific situation, a licensed Colorado attorney is the right resource. This is general information, not legal advice.
A written, fair fining policy is required
The written fining policy itself is one of the "responsible governance policies" Colorado law requires every association to adopt under C.R.S. § 38-33.3-209.5. As amended by House Bill 22-1137 and now part of the Common Interest Ownership Act, that statute requires a board to follow "a written policy governing the imposition of fines" and provides that the process "shall, at a minimum, guarantee the unit owner notice and an opportunity to be heard before an impartial decision maker." So the threshold question is whether the association even has the required policy — and whether it followed it.
The $500 cap
Colorado now caps most fines. The total amount of fines for a violation is limited to $500 where the violation "doesn't threaten public safety or health," and the law restricts assessing fines on a daily basis. A fine that exceeds the cap, or that stacks daily charges the statute does not allow, is vulnerable.
Interest and how payments are applied
Two more HB 22-1137 rules protect owners. The association may not charge interest greater than 8% per year on unpaid assessments, fees, or fines. And it must apply an owner's payment first to unpaid assessments, then to fines, fees, or charges — so a homeowner cannot be pushed toward assessment delinquency (the only thing that can support foreclosure) because the board steered payments to fines first.
Fines cannot cost you the home
Critically, an association "may not foreclose" a lien if the debt consists only of fines, or of collection costs and attorney fees associated only with fines. So while an unpaid fine remains a real debt, fines by themselves are no longer a path to foreclosure in Colorado. See Can a Colorado HOA Foreclose Over Dues?.
What people generally do
For a Colorado fine, the points that commonly matter:
- The association's records — the written fining policy, the cited rule, and minutes showing how similar matters were handled.
- Whether the association has the required policy and followed its "fair and impartial fact-finding process."
- The total against the $500 cap, and whether any daily fines are improper.
- Whether payments are being applied to assessments first and interest stays within 8%.
- How the rule has been enforced against others matters, a recognized defense.
- The HOA Information and Resource Center accepts complaints, and a licensed Colorado attorney can advise.
Sources
Free tool
Is your fine actually valid?
Answer a few questions about your notice and see how it compares to what Colorado's law requires before an association can fine you — free, with the statute quoted for each step.