Does SB 100 Apply to My HOA?
Since SB 100 became law, many board members and homeowners have asked us if SB 100 applies to their association. SB 100 (with a few exceptions) amended the Colorado Common Interest Ownership Act ("CCIOA"). Although SB 100 has changed how associations govern and operate in many ways, what it did not do is change the type of community CCIOA applies to. If CCIOA applied to your association before the modifications brought by SB 100, CCIOA still applies to your association. How do you know if you're a CCIOA community?
To varying degrees, CCIOA governs "common interest communities" ("CICs") created before its effective date of July 1, 1992 ("pre-CCIOA communities") and to those created after its effective date ("post-CCIOA communities.") Therefore, the amended CCIOA applies to your association if it is 1) a pre-CCIOA or post-CCIOA common interest community ("CIC"); AND 2) none of CCIOA's exemptions apply to your community. Since CCIOA - including SB 100's amendments to it - will not apply to your association if it is not a "common interest community," it is important to determine whether or not it is. Click here for a recent HindmanSanchez newsletter article discussing this topic.
Wondering if your association falls within one of CCIOA's exemptions? CCIOA exempts small planned communities (10 units or less for communities created on or after July 1, 1992 and before July 1, 1998 and 20 units or less for post-CCIOA communities), planned communities comprised entirely of non-residential units, limited expense planned communities (communities created between July 1, 1992 and July 1, 1998 whose declarations cap assessments at $300 or communities created after July 1, 1998 whose declarations cap assessments at $400, as adjusted in accordance with the consumer price index), and communities in which all units are restricted to nonresidential use. If a community's declaration provides that CCIOA applies to the community, the above exemptions will not apply to that community.