33-1803. Penalties; notice to member of
violation


A. Unless limitations in the community documents would result in a lower limit for
the assessment, the association shall not impose a regular assessment that is more than
twenty per cent greater than the immediately preceding fiscal year's assessment without
the approval of the majority of the members of the association. Unless reserved to the
members of the association, the board of directors may impose reasonable charges for the
late payment of assessments. A payment by a member is deemed late if it is unpaid fifteen
or more days after its due date, unless the community documents provide for a longer
period. Charges for the late payment of assessments are limited to the greater of fifteen
dollars or ten per cent of the amount of the unpaid assessment. Any monies paid by the
member for an unpaid assessment shall be applied first to the principal amount unpaid and
then to the interest accrued.


B. After notice and an opportunity to be heard, the board of directors may impose
reasonable monetary penalties on members for violations of the declaration, bylaws and
rules of the association. Notwithstanding any provision in the community documents, the
board of directors shall not impose a charge for a late payment of a penalty that exceeds
the greater of fifteen dollars or ten per cent of the amount of the unpaid penalty. A
payment is deemed late if it is unpaid fifteen or more days after its due date, unless
the declaration, bylaws or rules of the association provide for a longer period. Any
monies paid by a member for an unpaid penalty shall be applied first to the principal
amount unpaid and then to the interest accrued. Notice pursuant to this subsection shall
include information pertaining to the manner in which the penalty shall be enforced.


C. A member who receives a written notice that the condition of the property owned
by the member is in violation of the community documents without regard to whether a
monetary penalty is imposed by the notice may provide the association with a written
response by sending the response by certified mail within ten business days after the
date of the notice. The response shall be sent to the address contained in the notice or
in the recorded notice prescribed by section 33-1807, subsection J.


D. Within ten business days after receipt of the certified mail containing the
response from the member, the association shall respond to the member with a written
explanation regarding the notice that shall provide at least the following information
unless previously provided in the notice of violation:


1. The provision of the community documents that has allegedly been violated.


2. The date of the violation or the date the violation was observed.


3. The first and last name of the person or persons who observed the violation.


4. The process the member must follow to contest the notice.


E. Unless the information required in subsection D, paragraph 4 of this section is
provided in the notice of violation, the association shall not proceed with any action to
enforce the community documents, including the collection of attorney fees, before or
during the time prescribed by subsection D of this section regarding the exchange of
information between the association and the member. At any time before or after
completion of the exchange of information pursuant to this section, the member may
petition for a hearing pursuant to section 41-2198.01 if the dispute is within the
jurisdiction of the department of fire, building and life safety as prescribed in section
41-2198.01, subsection B.