This bill mandates that disputes between unit owners and their homeowners' associations in Colorado must first undergo an internal dispute resolution process, followed by mediation, before any legal action can be initiated. If mediation does not resolve the issue, the parties may then choose arbitration or proceed to court. This approach aims to encourage amicable settlements and reduce litigation.
Summary
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 reach a mediation agreement, the bill allows the parties to undergo arbitration or commence a legal proceeding.
