Bill > HB1123

This bill introduces a mandatory alternative dispute resolution process for conflicts between homeowners and homeowners' associations (HOAs) in Colorado. The legislation requires a two-step approach before filing a lawsuit: first, an informal negotiation where the unit owner and the HOA must meet in a private executive session within 60 days to discuss and attempt to resolve the dispute. The negotiation must be confidential and can include legal representation at each party's expense. If the informal negotiation fails, either party may file a complaint in court, but they are also encouraged to attempt mediation. The bill aims to create an efficient, fair, and cost-effective method for resolving disputes while preserving community relations and reducing judicial system burden. Important protections include tolling (pausing) the statute of limitations during the negotiation period and exempting cases involving immediate threats of injury or harm. HOAs are required to provide unit owners with a copy of this dispute resolution process annually and update their written policies to comply with the new requirements. The goal is to create a structured, collaborative approach to resolving conflicts before resorting to litigation.