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June 13, 2024 HB 24-1267
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0169
Rep. Jodeh; Bacon
Sen. Coleman; Hansen
Date:
Bill Status:
Fiscal Analyst:
June 13, 2024
Signed into Law
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: METROPOLITAN DISTRICT COVENANT ENFORCEMENT POLICY
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates requirements for covenant enforcement and design review services for
metropolitan districts. It increases state and local revenue and expenditures on an
ongoing basis.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The final fiscal note reflects the enacted bill.
Summary of Legislation
The bill requires metropolitan districts to comply with certain procedural requirements for
covenant enforcement and design review services. Under these requirements, the board of a
metropolitan district:
Must adopt written policies by January 1, 2025, that govern the imposition of fines and
establish the procedure for disputes between the district and unit owners. These must
include a schedule of fines for alleged violations that are continuous and repetitive in nature;
Must establish a fair and impartial fact-finding process that gives a unit owner notice and an
opportunity for a hearing;
Cannot foreclose on a lien based on resident’s delinquent fees, penalties, or other charges
owed to the district; and,
Cannot charge a unit owner for any court costs and attorney fees when a court determines
the owner did not commit an alleged violation; and,
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June 13, 2024 HB 24-1267
Cannot prohibit residents from displaying flags and signs, parking a motor vehicle in a
driveway as a condition of employment with emergency services, removing vegetation for
fire mitigation purposes in accordance with a written defensible space plan, modifying a
property to accommodate an individual with disabilities, using a rain barrel, using drought-
tolerant or nonvegetative landscapes to provide ground cover, operating a family child care
home, or installing renewable energy generation devices.
State Revenue and Expenditures
The bill may increase Judicial Department workload and revenue on an ongoing basis. Adding
new restrictions to covenant enforcement services may lead to disputes between a metropolitan
district and unit owners, which may bring new cases to trial courts. However, any increase in
workload is expected to be minimal and absorbable within existing resources. In addition, the
bill may increase cash fund revenue to the Judicial Department from new civil case filings. Any
increase in revenue, which is subject to TABOR, is expected to be minimal.
Local Government
The bill increases workload for metropolitan districts that provide covenant enforcement and
design review services, as these districts will need to develop written policies on fines and
disputes. The bill may also increase expenditures for these districts due to the inability to bill
unit owners for attorneys’ fees in certain situations. Districts could also lose revenue from not
being able to foreclose on a lien due to delinquent charges, though this practice is rare.
Effective Date
The bill was signed into law by the Governor on April 19, 2024, and takes effect on
August 7, 2024, assuming no referendum petition is filed.
State and Local Government Contacts
Counties County Clerks District Attorneys
Judicial Local Affairs Municipalities
Special District Association
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.