HOA Documents for New Construction in Colorado: What to Read Before You Sign
Almost every new community in Northern Colorado has an HOA, and the builder writes its rules before anyone lives there. The builder's sales team won't walk you through them. Here's what's in the documents, what to look for, and what Colorado law says an HOA can't stop you from doing.
The short answer
Before you sign with a builder, get the declaration (CC&Rs), bylaws, rules, design guidelines, budget and fee schedule. Read them for five things: what the dues cover and how they can rise, what you can and can't do on your lot, rental limits, who controls the HOA (in a new community, usually still the builder), and what you'll pay at closing.
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What's in an HOA Document Packet
Ask the builder for all of these before you sign. In a brand-new community some may be thin or not exist yet, and that's worth knowing too.
Declaration (CC&Rs)
The covenants, conditions and restrictions recorded against every home in the community. It's the HOA's constitution.
Look for: Leasing and short-term rental limits, fence and landscaping rules, parking (RVs, boats, work trucks), pets, home businesses, and what the builder can still change while the community is being built.
Bylaws and articles
How the association is run: the board, elections, meetings and voting.
Look for: How many board seats the builder holds, when owners take over, and how the declaration can be amended.
Rules, regulations and policies
The day-to-day rules, plus the written policies Colorado HOAs must adopt on things like collections, fines and records.
Look for: Fine amounts, how late fees and collections work, trash and parking rules, and how to request records.
Design guidelines
What the architectural review committee will approve on your lot.
Look for: Fence style and height, required landscaping and deadlines to finish it, approved colors, sheds, patios and solar placement.
Budget and reserve study
Where the dues go, and how much is saved for future repairs.
Look for: Whether the builder is subsidizing the budget, how big the reserves are, and whether dues are likely to rise once the builder leaves.
Fee schedule
Everything you'll pay besides monthly or annual dues.
Look for: Transfer fees, working capital or start-up contributions due at closing, and any amenity or club fees billed separately.
Meeting minutes and insurance
The board's recent decisions, and what the master policy covers.
Look for: Planned special assessments, disputes, lawsuits, and whether your own policy has to cover anything the HOA's doesn't.
Why New Construction HOAs Are Different
In a resale neighborhood, the HOA has years of budgets, minutes and decisions you can read. In a new community, most of that doesn't exist yet.
The builder usually controls the board. While the community is being built, the builder appoints the HOA board and can often still adjust the rules. In most Colorado communities, state law ends that control no later than 60 days after 75% of the homes that can be built have been sold to owners, and the declaration can end it sooner. Large planned communities can have different rules.
Early dues can be artificially low. Builders sometimes cover part of the HOA budget while they're selling homes. When they leave, owners pay the full cost, so dues can rise. Ask whether the builder is subsidizing the budget, and how much is in reserves.
Your contract may work differently. The standard Colorado resale contract gives buyers a deadline to review HOA documents and walk away. Builders usually use their own purchase contracts. Ask for the documents before you sign, and read the builder's contract for any review period.
Rules cost money. Fence styles, landscaping you must install by a deadline, and approved materials all add to what you spend after closing. See what a new build really costs.
Red Flags to Look For
- Dues that look low because the builder is covering part of the budget
- Little or nothing in reserves
- A special assessment in the minutes or budget
- Leasing limits that don't fit your plans, now or later
- Fence, landscaping or parking rules that add cost or rule out your truck, trailer or RV
- Amenity or club fees billed separately from the dues
- Lawsuits, insurance claims or construction defect disputes in the minutes
What a Colorado HOA Can't Prohibit
Colorado law limits what an HOA can ban, though it can usually still set reasonable rules on design and placement.
- Displaying the American flag, a military service flag, and political signs during election season (the HOA can regulate size and placement)
- Solar panels and other renewable energy devices
- Xeriscape or drought-tolerant landscaping (the HOA can set design rules for it)
- Rain barrels
- Installing your own electric vehicle charger (with reasonable restrictions)
- Fire mitigation: creating defensible space and replacing a cedar shake roof with less flammable roofing
- Energy-saving items like awnings, evaporative coolers and retractable clotheslines (with reasonable restrictions)
- Parking a first responder's emergency vehicle at home, and accessibility modifications under the Fair Housing Act
Source: Colorado Office of Legislative Legal Services summary of C.R.S. 38-33.3-106.5, -106.7 and -106.8. Laws change; check the current statutes or the Colorado HOA Information & Resource Center.
HOA vs. Metro District
An HOA enforces the covenants and maintains shared areas, paid for by dues. A metro district pays for infrastructure like roads, water and parks through your property taxes. Many new Northern Colorado communities have both, so you may pay HOA dues and a metro district tax.
In some communities the line blurs. At Lakeside Canyon in Mead, the metro district handles covenant enforcement and design review instead of a traditional HOA. See what a metro district adds to your payment.
Frequently Asked Questions
What HOA documents should I get before buying a new construction home?
Ask for the declaration (CC&Rs), bylaws and articles, rules and policies, design guidelines, the current budget and any reserve study, the fee schedule, recent meeting minutes, and the HOA's insurance summary. In a brand-new community some of these may be thin or not exist yet, which is worth knowing too.
What are CC&Rs?
CC&Rs (covenants, conditions and restrictions) are the rules recorded against every home in the community, usually in a document called the declaration. They cover things like leasing, fences, landscaping, parking, pets and exterior changes, and they bind every future owner.
When do I get the HOA documents on a new build, and can I back out?
The standard Colorado resale contract gives buyers a deadline to review association documents and terminate if they're not satisfied. Builders usually use their own purchase contracts, which may handle this differently. Ask for the documents before you sign, read the builder's contract for any review period, and ask your agent or a real estate attorney if anything is unclear.
When does the builder hand over control of the HOA?
While a community is being built, the builder usually controls the HOA board. In most Colorado communities, state law ends that control no later than 60 days after 75% of the homes that can be built have been sold to owners, and the declaration can end it sooner. Large planned communities can have different rules. Check the declaration and bylaws for your community's timeline.
Can HOA dues go up?
Yes. The board adopts a budget each year, and dues often change after the builder turns the HOA over to owners, especially if the builder was covering part of the budget. A special assessment, a one-time charge for a large expense, is another way costs can rise. Look at the budget, reserves and minutes for clues.
How much are HOA dues in Northern Colorado new construction?
It depends on what the HOA covers. At Harvest Ridge South in Berthoud, dues are $1,050 a year (about $88 a month) for trash, pocket parks, trails, open space and shared landscaping. At Morning Song at Harmony Club in Timnath, $390 a month also covers exterior maintenance, your landscaping, snow removal and hazard insurance. Compare what's included, not just the number, and confirm current dues before you sign.
Can my HOA stop me from installing solar panels or xeriscaping?
Generally, no. Colorado law limits HOAs from prohibiting solar panels and other renewable energy devices, xeriscape or drought-tolerant landscaping, rain barrels, and a homeowner-installed EV charger. The HOA can still set reasonable rules on design and placement, so check the design guidelines before you start a project.
Can an HOA stop me from renting out my home?
It can limit rentals if the declaration allows it. Some communities restrict short-term rentals, set minimum lease terms, or cap the number of rentals. Read the leasing section of the declaration before you buy, especially if you might rent the home later.
What's the difference between an HOA and a metro district?
An HOA is a private association that enforces the covenants and maintains shared areas, paid for by dues. A metro district is a special government district that pays for infrastructure like roads, water and parks through property taxes. Many new Northern Colorado communities have both, and in some, like Lakeside Canyon in Mead, the metro district handles covenant enforcement and design review instead of a traditional HOA.
Do I need an attorney to review HOA documents?
Many buyers don't, but it's your call. An agent who knows new construction can walk through the documents with you and flag questions to ask. For legal advice about your rights under a specific declaration or contract, talk to a Colorado real estate attorney.
Before you sign with a builder, send me the HOA documents.
I'll go through them with you and flag what to ask the builder about, before you're committed. The builder's agent works for the builder. I work for you.
Mark Leavitt is a Northern Colorado real estate broker with RE/MAX Alliance, not an attorney. This page is general education, not legal advice; for legal questions about a specific contract or declaration, consult a Colorado real estate attorney.