Property rights violations. Foreclosures. Sky-high fees. Coloradans say they’ve reached a boiling point with their homeowners associations. 

A newly formed group of property owners plans to take their message to the Capitol with a rally on Saturday, Sept. 14 to share personal stories and urge lawmakers to pass reforms for homeowners associations, often called HOAs. Organizers for Colorado Homeowners for HOA Reform and Representation say the rally is the first of its kind in Colorado and comes in response to a litany of alleged misconduct by HOA boards.

“The infrastructure that the government has put around how HOAs are dealt with allows for bad characters to infiltrate HOAs,” said event organizer Holly Crystal. “There’s no consumer protections, there’s no government oversight.”

Colorado is the second-highest state in the nation for the number of homeowners who live under an HOA, according to a recent market report from the Colorado Association of Realtors. The report included data from the U.S. Census Bureau and the Foundation for Community Association Research showing 41% of Colorado homeowners have an HOA — second only to Florida at 45%. 

Homeowners from the High Country to the Front Range have raised concern over the surging fees they pay their associations primarily due to an increase in insurance premiums. In some cases, HOA members have seen their monthly dues more than double within the last two years. 

Colorado HOA boards have also made headlines for a number of controversies that include selling off foreclosed homes at a fraction of market value and money mismanagement by board-hired companies. 

“Not all HOAs are predatory,” said Rep. Iman Jodeh, an Aurora Democrat who has sponsored HOA reform legislation in the state legislature. “But I think it’s easy for HOAs to have predatory practices because they realize the residents within their associations are either limited in their resources to fight back or are simply unaware of how the HOA is being predatory.”

Crystal said she was driven to advocacy after a years-long legal battle with her HOA that cost her around $400,000 in attorney fees, according to financial information she provided to the Summit Daily News.

The crux of the issue centered around property rights for a townhome Crystal purchased in Frisco in 2014. She claimed her HOA board, which controls the fourplex that includes her townhome, was attempting to turn her backyard into common space by placing an easement on the lot — despite a plat map that showed the yard as private property. 

Crystal said having a private backyard was a key reason she bought the home. 

“So they put me in a position where I had to sue because, if I didn’t, I was going to lose my private lot,” she said. 

The Colorado Court of Appeals late last month ruled partly in Crystal’s favor, stating that the HOA violated her right to due process when it tried to claim her yard as common space, according to court documents reviewed by the Summit Daily. Several of Crystal’s other claims of HOA misconduct were remanded to a district court in Breckenridge. 

While Crystal said she is hopeful the main prong of her legal fight is over, the experience has left her mentally exhausted and financially drained. Crystal said she dipped into her retirement savings, took on side jobs, sold her car and other assets to afford her legal fees. She hopes to be reimbursed by the HOA through a court order. 

“All of it has been a nightmare that in my wildest dreams I couldn’t have imagined,” she said. “I’m not an individual who would fund a $400,000 lawsuit. I fell into this. If I didn’t fund the lawsuit, I could have lost my private property, and that outrages me.”

Crystal’s case underscores a core weakness in how homeowner disputes are handled, said Patrick Johansen, founder of the grassroots advocacy organization HOA Reform Leaders National Group. Because HOA complaints fall under civil law — meaning noncriminal disputes — a homeowner’s only recourse is to sue their association if they suspect wrongdoing. 

“Very few people have the money to take them to court,” Johansen said. “It’s the No. 1 problem.” 

He added, “When you get into a lawsuit with an HOA, they can use the collective funds and the insurance to pay (for it) … whereas a homeowner has to use their life savings and potentially lose their house.”

Johansen’s group, which represents close to 1,000 volunteer members nationwide, has proposed nearly two dozen policy solutions to state houses across the country. Those include proposals for an out-of-court resolution process and to empower state regulatory agencies to investigate and potentially punish association members who violate laws. 

Johansen pointed to Florida as an example of a state where lawmakers have begun to rein in HOA powers — such as limiting how much boards can charge in fines — through legislation passed this year. But he’s hoping states will go even further to safeguard residents’ rights. 

“I think we’re having an effect,” Johansen said. “But it’s not as fast as I would like.”

Colorado lawmakers this year passed new laws around how HOAs foreclose on homes that fall behind on monthly dues. The legislation limits attorney fees in foreclosure cases and sets a minimum bid for a home being sold at auction. The rules came in the wake of a 2023 Colorado Sun investigation that found HOAs auctioned off homes well below market value, erasing years of equity on the part of the homeowner. 

The legislature also created a task force last year to look into HOA reform measures. This spring, it released a number of policy proposals that lawmakers say are likely to be introduced in the upcoming session at the Capitol.

“There was some progress made, but we still have so much more work to do,” said Rep. Naquetta Ricks, a Democrat representing parts of Arapahoe County who has championed HOA reform legislation in past sessions. 

Ricks said she wants to see a bill that would mandate conflict resolution between HOAs and homeowners in a bid to stave off expensive court cases. Ricks said she would be open to exploring state oversight and enforcement for HOA members by empowering agencies to hold boards accountable. 

A similar framework already exists for mobile home parks after lawmakers passed a slew of legislation that charged the Department of Local Affairs with investigating complaints from tenants and property owners. The legislation grants the department the ability to issue cease and desist orders that can then be reinforced by the attorney general’s office as well as issue fines, such as for landlords who fail to comply with state laws. 

“We really need to take some different steps here in Colorado and put some tighter reins and control over HOAs,” said Ricks, who plans to speak during Saturday’s rally. “Any law that we put out needs to have penalties for bad actors.”

A lack of state enforcement and accountability will only allow for more spaces where HOA misconduct can fester, Crystal said. 

“Laws are being passed. But if you’re just passing laws and have no oversight … it’s like throwing me a wooden sword when I am going out on the battlefield,” Crystal said.

Crystal is hoping for a sizable turnout for Saturday’s rally, which will include speeches from homeowners, HOA board members, advocacy groups and others. She said organizers plan to hold future events including town halls with state lawmakers as a way to educate the public and keep up the pressure for reform. 

For Crystal, the fight is personal. She launched a YouTube channel earlier this year that spotlights stories of homeowners who’ve been taken advantage of by their HOAs as a way to show people they’re not alone. 

“Our message isn’t anti-HOA,” Crystal said. “But we need some government oversight of what’s going on with HOAs, where the problems are and transparency for Coloradans.”

The rally will be held on Saturday, Sept. 14 from 2:30-6 p.m. on the west steps of the Colorado State Capitol building in Denver. The group can be contacted at coloradohoareform@gmail.com.