First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 25-0200.02 Chelsea Princell x4335
HOUSE BILL 25-1123
House Committees Senate Committees
Judiciary
A BILL FOR AN ACT
C
ONCERNING ALTERNATIVE DISPUTE RESOLUTION FOR DISPUTES THAT101
ARISE BETWEEN A UNIT OWNER AND A UNIT OWNERS '102
ASSOCIATION.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Under current law, common interest communities are encouraged
to use mediation prior to filing a complaint with the court. The bill
requires a dispute between a unit owner and a unit owners' association to
go through an internal dispute resolution process and mediation before the
parties can file a complaint with the court. If the parties are unable to
HOUSE
Amended 2nd Reading
April 3, 2025
HOUSE SPONSORSHIP
Ricks and Joseph,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. reach a mediation agreement, the bill allows the parties to undergo
arbitration or commence a legal proceeding.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, repeal and reenact,2
with amendments, 38-33.3-124 as follows:3
38-33.3-124. Mandatory alternative dispute resolution -4
purpose - legislative declaration - definitions. (1) THE GENERAL5
ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THIS SECTION IS TO6
PROVIDE AN EFFICIENT, FAIR, AND COST-EFFECTIVE PROCESS FOR7
RESOLVING DISPUTES BETWEEN A UNIT OWNER AND A UNIT OWNERS '8
ASSOCIATION, WHILE PRESERVING THE INTEGRITY OF COMMUNITY9
RELATIONS AND MINIMIZING THE BURDEN ON THE JUDICIAL SYSTEM .10
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
REQUIRES:12
(a) "DISPUTE" MEANS ANY CONFLICT, CONTROVERSY, OR13
DISAGREEMENT BETWEEN A UNIT OWNER AND A UNIT OWNERS'14
ASSOCIATION.15
(b) "MEDIATION" HAS THE SAME MEANING AS SET FORTH IN16
SECTION 13-22-302.17
(3) A DISPUTE BETWEEN A UNIT OWNER AND A UNIT OWNERS'18
ASSOCIATION MUST UNDERGO AN INFORMAL NEGOTIATION PURSUANT TO19
SUBSECTION (4) OF THIS SECTION AND, IF UNSUCCESSFUL, MEDIATION20
AFTER FILING A LAWSUIT UNLESS MEDIATION HAS ALREADY BEEN21
ATTEMPTED.22
(4) (a) IN THE EVENT OF A DISPUTE, EITHER PARTY MAY REQUEST23
AN INFORMAL NEGOTIATION TO RESOLVE THE DISPUTE .24
(b) AFTER A PARTY REQUESTS AN INFORMAL NEGOTIATION, THE25
1123-2- UNIT OWNERS' ASSOCIATION SHALL SUBMIT A WRITTEN NOTICE TO THE1
UNIT OWNER. THE WRITTEN NOTICE MUST INCLUDE :2
(I) A BRIEF DESCRIPTION OF THE DISPUTE BETWEEN THE PARTIES;3
(II) A REQUIREMENT THAT THE UNIT OWNER MEET WITH THE UNIT4
OWNERS' ASSOCIATION WITHIN SIXTY DAYS OF RECEIVING THE NOTICE;5
AND6
(III) A COPY OF THIS SECTION.7
(c) SERVICE OF THE NOTICE DESCRIBED IN SUBSECTION (4)(b) OF8
THIS SECTION MUST BE MADE BY CERTIFIED MAIL , RETURN RECEIPT9
REQUESTED.10
(d) THE INFORMAL NEGOTIATION DESCRIBED IN THIS SUBSECTION11
(4) MUST TAKE PLACE AT A REGULARLY SCHEDULED UNIT OWNERS'12
ASSOCIATION BOARD MEETING IN EXECUTIVE SESSION, OR, IF THERE IS NOT13
A MEETING SCHEDULED WITHIN SIXTY DAYS FOLLOWING DELIVERY OF THE14
WRITTEN NOTICE, AT A SPECIAL UNIT OWNERS' ASSOCIATION BOARD15
MEETING IN EXECUTIVE SESSION DURING THAT SIXTY-DAY PERIOD TO16
INFORMALLY NEGOTIATE A RESOLUTION OF THE DISPUTE .17
COMMUNICATIONS DURING THE UNIT OWNERS' ASSOCIATION BOARD18
MEETING DURING THE INFORMAL NEGOTIATION ARE CONFIDENTIAL AND19
PROTECTED COMMUNICATIONS CONSISTENT WITH RULE 408 OF THE20
COLORADO RULES OF EVIDENCE AND SECTION 13-22-307. THE PORTION OF21
THE UNIT OWNERS' ASSOCIATION BOARD MEETING IN WHICH AN INFORMAL22
NEGOTIATION TAKES PLACE MUST BE CLOSED TO ANYONE WHO IS NOT A23
PARTY TO THE DISPUTE THAT IS THE SUBJECT OF THE INFORMAL24
NEGOTIATION.25
(e) FOR DISPUTES GOVERNED BY THE DISPUTE RESOLUTION26
PROCESS DESCRIBED IN SECTION 38-33.3-209.5 (1.7), THE INFORMAL27
1123
-3- NEGOTIATION MUST TAKE PLACE PURSUANT TO THE PROCESS DESCRIBED1
IN SECTION 38-33.3-209.5 (1.7) PRIOR TO FILING A COMPLAINT IN COURT.2
(f) A PROVISION OF AN AGREEMENT ENTERED INTO BETWEEN THE3
PARTIES THAT RESOLVES THE DISPUTE IS NOT A WAIVER OF A COVENANT4
OR ENFORCEMENT RIGHT BY THE ASSOCIATION IN ANOTHER MATTER .5
(g) EITHER PARTY MAY BE REPRESENTED BY AN ATTORNEY AT THE6
INFORMAL NEGOTIATION AT THE PARTY 'S OWN EXPENSE.7
(5) (a) IN THE EVENT THAT THE DISPUTE IS NOT RESOLVED8
THROUGH INFORMAL NEGOTIATION AS REQUIRED IN SUBSECTION (4) OF9
THIS SECTION, EITHER PARTY MAY FILE A COMPLAINT IN A COURT OF10
COMPETENT JURISDICTION. ONCE A COMPLAINT IS FILED, BUT BEFORE AN11
ANSWER OR OTHER RESPONSIVE MOTION IS FILED, THE COURT SHALL12
ORDER MEDIATION UNLESS THE PARTIES HAVE ATTEMPTED VOLUNTARY13
MEDIATION ON ISSUES IDENTIFIED IN THE COMPLAINT WITHIN NINETY DAYS14
PRIOR TO THE DATE THE COMPLAINT IS FILED. THE COST OF MEDIATION15
MUST BE EQUALLY SHARED BY THE PARTIES .16
(b) THIS SUBSECTION (5) DOES NOT PRECLUDE THE PARTIES FROM17
VOLUNTARILY TAKING PART IN MEDIATION BEFORE FILING WITH A COURT18
OF COMPETENT JURISDICTION IF THE PARTIES ARE UNABLE TO REACH A19
RESOLUTION THROUGH AN INFORMAL NEGOTIATION PURSUANT TO20
SUBSECTION (4) OF THIS SECTION.21
(6) THIS SECTION DOES NOT APPLY TO A DISPUTE INVOLVING A22
REASONABLE THREAT OF IMMEDIATE INJURY, HARM, OR DAMAGE TO A23
PERSON OR PROPERTY.24
(7) A UNIT OWNERS' ASSOCIATION SHALL ANNUALLY PROVIDE A25
COPY OF THIS SECTION TO EACH OF ITS UNIT OWNERS .26
(8) A UNIT OWNERS' ASSOCIATION MUST UPDATE THE27
1123
-4- ASSOCIATION'S WRITTEN POLICIES TO COMPLY WITH THE REQUIREMENTS1
OF THIS SECTION AND PROVIDE A COPY OF THE UPDATED WRITTEN POLICY2
TO ITS UNIT OWNERS WITHIN FOURTEEN DAYS AFTER UPDATING THE3
WRITTEN POLICIES.4
SECTION 2. Safety clause. The general assembly finds,5
determines, and declares that this act is necessary for the immediate6
preservation of the public peace, health, or safety or for appropriations for7
the support and maintenance of the departments of the state and state8
institutions.9
1123
-5-