Even the most well-intentioned HOA boards in Denver can get tripped up by local laws — especially when those rules quietly change or expand beyond what’s covered at the state level.

Most board members are familiar with state laws like HB22-1137. But what many don’t realize is that Denver has its own policies and enforcement practices that layer on top of state requirements. If you’re managing a community in the Denver metro area, here are a few rules that have been catching boards off guard — and what you can do to avoid the same mistakes.

1. Denver’s Extra Foreclosure Protections

After a wave of HOA foreclosures in the Green Valley Ranch neighborhood, Denver responded with stricter notice requirements for boards looking to pursue foreclosure. These requirements go beyond what Colorado state law mandates.

In Denver, HOAs are required to provide homeowners with at least 30 days’ notice before initiating a foreclosure. That notice also needs to include contact information for housing counselors and legal aid — a detail many boards overlook.

What to watch for: If your association uses a template foreclosure notice created before 2023, chances are it’s missing the Denver-specific language. That can delay the legal process or even invalidate the action altogether.

2. HOAs Can’t Ban Fire-Resistant Materials

This one’s a statewide rule, but it’s especially relevant for communities near the foothills and open space. In 2024, Colorado passed a law that stops HOAs from prohibiting homeowners from using fire-resistant building materials like ember-proof vents or metal siding.

Denver-area boards — especially in neighborhoods that adopted strict design rules a decade or more ago — are often unaware that some of their restrictions are now unenforceable.

Tip for boards: Take a fresh look at your design review guidelines and architectural standards. If they include a blanket prohibition on certain materials, it’s time for an update.

3. ADUs Are Now Allowed Citywide — Whether Your HOA Likes It or Not

Denver’s new citywide zoning changes allow Accessory Dwelling Units (ADUs) in all residential zones, with no owner-occupancy requirement. This means homeowners can add backyard cottages, basement apartments, or over-garage units regardless of what your governing documents say.

While associations can still regulate the look and placement of an ADU, they can’t ban them outright within city limits.

The common misstep: Boards relying on old CC&Rs assume they can simply deny ADU applications. In Denver, that’s no longer true — and a homeowner can challenge the decision successfully.

4. Legal Fee Caps in Collections and Foreclosures

Under HB24-1337, which took effect in 2024, there are now clear limits on how much an HOA can charge a homeowner for attorney’s fees related to collections or foreclosure:

  • No more than 50% of the total amount owed, or
  • A maximum of $5,000 — whichever is less

Many boards assume that legal fees are fully recoverable. But if your legal or collections process hasn’t been updated to reflect these caps, your association could be violating the law without realizing it.

What boards should do now: Talk to your attorney or management company and ask how they’re applying these limits. You need clear, written policies in place.

Final Takeaway: Don’t Assume Your Policies Are Still Legal

The Denver area is evolving — and so is HOA law. A policy that made sense a few years ago might now be out of step with current legal requirements. Whether it’s how you handle a violation, approve a construction project, or start collections, it pays to double-check your process.

Here’s a quick checklist for your next board meeting:

  • Review foreclosure templates for city compliance
  • Update design guidelines to allow fire-resistant upgrades
  • Remove blanket bans on ADUs
  • Ensure collection policies reflect the legal fee cap

Need help reviewing your association’s policies or preparing compliant templates? Contact us — we’re here to support your board every step of the way.