HB 25-1123
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1123: HOA ALTERNATIVE DISPUTE RESOLUTION
Prime Sponsors:
Rep. Ricks; Joseph
Published for: House Judiciary
Drafting number: LLS 25-0200
Fiscal Analyst:
Clayton Mayfield, 303-866-5851
clayton.mayfield@coleg.gov
Version: Initial Fiscal Note
Date: February 11, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill requires certain dispute resolution procedures for homeowner associations.
Types of impacts. The bill is projected to minimally affect the following areas on an ongoing basis:
State Revenue State Expenditures
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
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February 11, 2025 HB 25-1123
Summary of Legislation
The bill requires disputes between a unit owner and a homeowners association (HOA) to go
through internal dispute resolution and, if necessary, mediation before a legal proceeding is
initiated by either party. Certain procedures must be followed, including proper notice
requirements, selection of mediators, and cost sharing for mediations. If parties do not reach an
agreement after an internal dispute resolution, they must proceed to a mediation. Only if
mediation is unsuccessful may parties begin legal proceedings.
The party initiating a legal proceeding must file a certificate of compliance that indicates
mediation was undertaken but unsuccessful. Certain types of disputes are exempt from the bill’s
requirements, including violations of local, state, or federal law.
State Revenue
Starting in FY 2025-26, the bill may impact revenue to the Judicial Department from filing fees. If
fewer civil cases are filed by HOAs or unit owners as a result of the bill’s requirements for
alternative dispute resolution, revenue will decrease. Conversely, if failure to comply with the
bill’s requirements results in additional filings, revenue will increase. Overall, it is assumed that
impacts to revenue will be minimal. Revenue from filing fees is subject to TABOR.
State Expenditures
The bill minimally impacts workload in the Judicial Department and the Department of
Regulatory Agencies (DORA) beginning in FY 2025-26, as described below.
Judicial Department
The trial courts in the Judicial Department may experience a decrease in workload to the extent
fewer civil cases are filed as a result of the bill’s dispute resolution requirements. This decrease
may be offset to the extent the bill increases workload from civil cases filed after unsuccessful
alternative dispute resolution, which may increase workload from additional filings, required
findings, and potentially longer hearings in these cases. Additionally, workload in the Office of
Dispute Resolution may increase to the extent unit owners or HOAs choose to utilize the office’s
services. The fiscal note assumes that any workload impact will be minimal and no change in
appropriations is required. Page 3
February 11, 2025 HB 25-1123
Department of Regulatory Agencies
The HOA Information and Resource Center in DORA serves as a resource for consumers to
understand rights and responsibilities under current law. The center also registers common
interest communities like HOAs and other housing cooperatives, and tracks complaints.
Workload may increase to ensure the bill’s requirements are reflected in the current operation of
the HOA Information and Resource Center. This increase is expected to be minimal, and no
change in appropriations is required.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
Judicial
Local Affairs
Regulatory Agencies
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.