Introduction
The Meadows is Castle Rock’s largest neighborhood and is now at the center of a heated homeowner revolt after a jaw-dropping discovery: metro districts created by the developer have amassed over $434 million in bond debt, even though homeowners have paid into it via property taxes for decades. Residents are demanding transparency, accountability, and a say in governance as they seek to reclaim board control.
The Hidden Debt: How $70M Became $434M
Originally issued in 1989 as $70 million in limited-tax general obligation bonds to pay for roads, sewer and other infrastructure, the debt ballooned because interest payments weren’t covering principal. By 2025, homeowners were still paying even though the principal hadn’t decreased, and the debt had grown to nearly $434 million. CBS News Colorado detailed how their property taxes couldn’t keep pace with compounding negative amortization.
Residents Speak Out
Longtime residents like Jim Garcia and Mary Wilson said they’d never imagined such mounting debt. Garcia noted “the numbers just didn’t add up,” and Wilson—who lives elsewhere in Castle Rock—was frustrated that her neighborhood dissolved its metro district once debt was paid, while The Meadows remained stuck in tax limbo. Wilson quoted her disbelief that years of tax dollars seemed to produce no community benefit.
Residents Wage an Election Campaign
Shocked by the scope of the debt, residents mobilized. Dozens ran for board seats across the seven metro districts in May 2025. In several districts, developer‑backed incumbents withdrew after facing competition, leaving homeowner majorities in place in five of seven boards. CBS reported that residents’ candidacy pressure prompted the shift.
A Taxed & Voiceless Generation
Coverage by Rocky Mountain Voice dubbed Meadows residents “taxed and voiceless.” It reported that as many as 20,000 property owners are paying taxes on infrastructure built in the late 1980s, yet they continue for decades beyond the debt’s supposed payoff through a financing structure that ensures indefinite compounding interest. Rocky Mountain Voice explained the mechanics of the bond’s negative amortization.
Understanding Colorado’s HOA + Metro District Framework
In Colorado, master‑planned communities often use both a private HOA (for amenities, rules) and public metro districts (government entities with taxing power) to finance infrastructure. Homeowners in The Meadows pay both HOA assessments and separate property taxes. Because developer‑controlled boards managed the metro districts—and thus the debt—residents paid taxes for years with limited oversight or representation.
Legal Protections: CCIOA & HB 23‑1105
The Colorado Common Interest Ownership Act (CCIOA) mandates transition from developer control to homeowner‑elected boards once defined thresholds (e.g. percentage of units sold) are met. Homeowners also have rights to open meetings and to inspect financial records. Meanwhile, House Bill 23‑1105 (2023) created both an HOA Homeowners’ Rights Task Force and a Metro District Homeowners’ Rights Task Force to study governance, tax levies, communications, and the transition of metro districts to common‑interest communities. See HB 23‑1105 details.
Broader HOA & Special District Issues Across Colorado
Colorado has over 1,800 metro districts and some 10,000 HOAs. Many homeowners report issues with transparency, board responsiveness, and surprise fee hikes. Reports have included missing funds and poorly regulated management companies. Due to the sunset of property manager licensing in 2019, enforcement is often limited. Colorado Association of Homebuilders and state complaints reflect widespread frustration.
How Meadows Residents Took Action
Residents organized candidate slates, educated their neighbors, and pushed incumbent board members to withdraw. By proactively running for seats, they forced elections where none had existed and claimed control in five of seven boards. Their mobilization transformed the governance structure overnight and set a precedent for community involvement.
Steps Homeowners Can Take Now
Engaged Meadows residents are now calling for independent audits, open financial disclosures, and clear communication. Colorado law supports these actions:
- Request financial records and meeting minutes from HOA and metro district under CCIOA.
- Attend board meetings—metro district meetings are public by state statute.
- Run for board positions, or support local resident candidates.
- File complaints or ask questions through the Colorado Division of Real Estate HOA Information & Resource Center.
- Contact state legislators to highlight governance gaps—task force findings may drive future reform.
Final Thoughts…
The Meadows experience—once developer‑dominated and financially opaque—is now a case study in homeowner empowerment. Even a massive $434 million debt can be confronted when neighbors organize, ask questions, and insist on accountability. Colorado homeowners in HOAs or special districts should take note: read your documents, understand your structure, attend meetings, and consider running for leadership.