The Long-Term Impact of HB22-1137 on HOA Property Management in Colorado

House Bill 22-1137 (HB22-1137) introduced significant changes to how homeowners associations (HOAs) operate in Colorado. While intended to protect homeowners, the law has created new challenges for HOA management, including delayed enforcement, strained cash flow, and project delays. Understanding these impacts is critical for HOA boards, property managers, and homeowners alike.

What Is HB22-1137 and Why It Matters for Colorado HOAs

HB22-1137 was passed to regulate HOA practices related to covenant enforcement, collections, and homeowner protections. While the legislation aims to prevent overly aggressive enforcement and provide financial flexibility for homeowners, it has introduced unintended operational challenges for associations.

How HB22-1137 Changed Covenant Enforcement

One of the most significant changes under HB22-1137 is the requirement for a minimum 30-day documentation period before further action can be taken on non-safety violations.

Key Impacts:

Slower enforcement timelines
Increased visibility of unresolved violations
Perception of reduced HOA authority

While this protects homeowners from excessive fines, it can lead to prolonged violations that affect community aesthetics and neighbor satisfaction.

The Financial Impact: HOA Collections and Cash Flow Challenges

HB22-1137 has also reshaped how HOAs handle delinquent accounts.

Key Changes:

Extended payment plans (up to 18 months)
Low minimum monthly payments (as little as $25)
Balloon payments at the end of the term

Resulting Issues:

Delayed revenue collection
Budget instability
Increased financial risk for associations

Because HOAs rely on timely assessments to cover essential expenses like insurance, utilities, and maintenance, these delays can significantly impact operations.

Special Assessments and Project Delays

The legislation has also affected how HOAs fund major projects through special assessments.

Real-World Impact:

High adoption of extended payment plans
Delayed project timelines
Increased risk of infrastructure failure
Potential reliance on loans (and added interest costs)

In some cases, critical repairs or upgrades are postponed, increasing long-term costs and risks.

How HOA Management Companies Are Adapting

To work within the constraints of HB22-1137, property management companies have implemented several strategies:

Common Workarounds:

Adding courtesy notices before formal violations
Budgeting contingency funds for delayed payments
Surveying homeowners before special assessments
Phasing projects to align with cash flow

While helpful, these solutions are temporary and do not fully resolve the underlying challenges.

The Need for Legislative Refinement

Industry professionals widely agree that HB22-1137 requires refinement to better balance homeowner protections with HOA operational needs.

Organizations like the Colorado Legislative Action Committee (CLAC) are actively working to improve legislation and encourage stakeholder participation.

How Homeowners and HOA Boards Can Get Involved

Staying informed and engaged is critical.

Ways to Participate:

Monitor legislative updates
Respond to Calls to Action from CLAC
Provide testimony on proposed laws

Active involvement ensures that future legislation reflects the needs of both homeowners and associations.

Conclusion: Balancing Protection and Practicality

HB22-1137 represents a major shift in Colorado HOA governance. While it offers important protections for homeowners, it also introduces operational and financial challenges that cannot be ignored. Moving forward, collaboration between lawmakers, industry professionals, and communities will be essential to create sustainable solutions.

Author Section

Aaron Monaco is the Vice President of Property Management with CAP Management and has over 19 years of industry experience.