Developers must follow city and county requirements and Colorado State Law in developing their communities.  They must file plans, plats, and a Declaration of Covenants with the county, as well as incorporate the non-profit homeowners association by filing the Articles of Incorporation with the Secretary of State’s office.  The Colorado Non-Profit Corporation Act and the Colorado Common Interest Ownership Act (CCIOA), along with its amendments, SB-100 and SB-89, typically apply. 

The developer turns over the HOA to owners after a certain timeframe has elapsed.  This timeframe is normally outlined in the Declaration and then new Board members are elected by homeowners from the current homeowners to govern the community.  Usually at least one Board member is elected (or re-elected) each year.  The Board is ultimately responsible for the operating functions of the Association as outlined in the Declarations and ByLaws of the Association, and must follow the governing documents in doing so.  Other documents may be developed to govern the Association, such as Rules & Regs and Policies.

A Management Company is usually hired to help Board members fulfill their duties to the Association.  The Management Company normally handles all the day-to-day operations of the Association, including receiving dues payments, processing bills for payment, dealing with contractors, obtaining bids, advising the Board, taking phone calls, handling complaints and violations, etc.

Homeowners are required (by virtue of purchasing a home in the community), to also follow the governing docs as well as Association Policies and Rules.  This means owners must pay dues and assessments of the Association or face collection action, and must follow Rules and Policies or face fines and/or other consequences.

The Board may also be assisted by Committees, such as Social, Financial, Landscape, Welcome, Architectural Control, etc.  These Committees are assigned specific tasks, with goals of making recommendations to the Board.

In this day and age, the services of an HOA Attorney, specializing in HOA law, is also the norm.  They perform collection actions against delinquent homeowners, advise Management and the Board on Association issues, and draft Rules and other documents, all in accordance with the governing documents and fed/state laws.