Westminster, CO asked in Antitrust and Real Estate Law for Colorado

Q: Regarding CO HOA. ANtitrust?

Local HOA seems to require that homeowners buy their storm doors from one particular reseller. Isn't that an antitrust violation? I know they can dictate color and style, maybe even brand, but can they force a homeowner to buy from a particular seller or store?

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1 Lawyer Answer

Tristan Kenyon Schultz

Answered
  • Fort Collins, CO
  • Licensed in Colorado

A: It is not an antitrust matter. The HOA does not meet the requirements to be subject to antitrust laws. HOA requirements of a purchase from a particular dealer arguably have a rational basis to allow the hyper-conformity that some HOAs require (no comment on whether HOAs de facto transform home ownership into rentals via hyper-restrictive rules). Colorado is very lax is allowing HOAs to have the ability to micromanage property owners exterior appearances. While there a limits (most related to discrimination), HOAs are treated like private clubs. Meaning that courts do not normally review reasonableness of HOA decisions.

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