HOA Legi-Slate

We have been hearing from worried homeowners, as well as board members, saying that due to all types of reasons, their associations have not yet adopted the responsible governance policies and procedures required by CCIOA. (Section 38-33.3-209.5 requires associations to adopt policies and procedures addressing: 1) collections; 2) handling board member conflicts of interest; 3) conduct of meetings; 4) enforcement of covenants and rules; 5) owner inspection and copying of records; 6) investment of reserve funds; 7) the adoption and amendment of policies, procedures, and rules; and 8) handling of disputes between association and owners [Note: associations have until January 1, 2007, to adopt this last policy.])

These concerned individuals want to know the consequences of not having these policies and procedures. Their questions fall along the lines of, 'if my association doesn't have a collection policy, does it still have the authority to collect unpaid assessments?' Or, 'if my association doesn't have an enforcement policy, may it still take enforcement actions?'

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An association that maintains adequate reserves will find itself in the enviable position of having the funds necessary to cover the unenviable (and usually eventually unavoidable) costs of undertaking major maintenance and replacements of the community's common elements. Three potentially unappealing options face associations who haven't planned ahead by adequately reserving: 1) do nothing and allow the situation to deteriorate further, decreasing property values; 2) impose a special assessment; or 3) attempt to secure a loan, which will need repayment eventually. Even before a common element needs replacement, a lack of adequate reserve funds can hurt the ability of prospective buyers to obtain financing. In addition, some insurance companies have expressed reservations about renewing the master insurance policies of associations with underfunded reserves.

Posted By Loura K. Sanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 1 Comments Permalink

As discussed in this post, Colorado does not have a state regulatory or enforcement agency to monitor association compliance with CCIOA. Much of CCIOA's enforcement power comes from section 38-33.3-123, which provides for the mandatory award of attorney fees to the prevailing party in actions to enforce its provisions. We have heard concerns that SB 100 and SB 89 broadened the types of actions for which attorney fees are awarded. This understandable concern is actually unfounded.

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As discussed in this post, current law requires a seller, on the request of the buyer, to disclose the association's governing and financial documents listed in the most recent available version of the Colorado Real Estate Commission's sales contract. Sellers may do this by providing the required documents themselves (whether they deliver personally or through their real estate agent) or by authorizing their association to provide them to the buyer. (Although the statute speaks only to sellers authorizing their associations to disclose the documents, practically speaking, it is likely that these requests may come from sellers' real estate agents.) Chances are sellers within your community will be - or already have begun - authorizing your association to disclose these documents to the buyer. Does your association have a system in place to honor these requests efficiently and in a manner that protects association interests?

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Governor Owens signed HB 06-1175, the 'Colorado Clean Indoor Act', into law on March 27th. HB 1175, sponsored by Representative May and Senator Grossman, institutes a state-wide ban on smoking in almost all public establishments. (The new law exempts cigar bars, casinos, and DIA's smoking lounge.) Effective on July 1, it is not only restaurants and bars that must go smoke-free - condominium, loft, and townhome residents will also need to think twice before lighting up a cigarette.

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HB 1090, discussed in this Denver Post article and this post, passed its third reading in the Senate today. HB 1090 would allow victims of childhood sex abuse more time to file lawsuits against private institutions that knew or were on notice of the "propensity of an employee, volunteer, representative, agent, or subordinate of the employer" for engaging in unlawful sexual conduct and who failed to take reasonable steps or institute reasonable safeguards to prevent any such conduct.

The Governor has not given any indication as to whether he will sign or veto the bill. If the bill passes, we will be providing guidance on how to safeguard your association from these types of claims.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

SB 06-02, entitled 'Concerning Mandatory Disclosure In Connection With The Purchase Of Residential Real Property Of Whether The Property Has Been Used As A Methamphetamine Laboratory,' is sponsored by Senator Shaffer and Representative Pommer. The bill, which is on its way to the Governor, addresses the health harms caused by the lingering chemicals left after other discernable signs of methamphetamine production have been cleaned up.

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Click here to view the unofficial preamended version of SB 89, which has been posted on the General Assembly website. This version includes all the Local Government committee amendments that were approved at the hearing on April 11, but have not yet been adopted by the whole House of Representatives on Second Reading. We expect that Second Reading will take place by the end of this week. Click here for the blog post that summarizes these amendments.

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SB 89 will have its second reading next week. While the bill as a whole will benefit owners and associations by cleaning up and clarifying portions of SB 05-100, a hostile amendment was secured during the Local Government Committee hearing. This amendment would allow planned communities, regardless of their size or date of creation, to amend their declarations to exempt out of CCIOA. (Click here for more details.)

Please contact your representative by Monday, April 17 to request his or her support for SB 89 and to oppose the hostile 'carve out' amendment adopted in committee. You can find your representative by visiting Project Vote-Smart and entering your nine-digit zip code.

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At the House Local Government hearing on Tuesday, April 11, Representative Liston, the House sponsor of SB 185, requested that the bill be postponed indefinitely. (SB 185 proposed to extend the CCIOA exemption for small and limited expense planned communities created after July 1, 1998 to all small and limited expense communities. Our objections to this proposal are discussed in this post.) The Committee then voted to postpone the bill indefinitely, which has the same effect as killing a bill. Unfortunately, the demise of SB 185 is not the end of the story due to an amendment added at the last minute to SB 89 by SB 185's proponents. (Click here to view amendment.)

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SB 143 - which would have allowed victims of childhood sex abuse to sue private institutions on vicarious liability claims - has generated much controversy as reported in this Denver Post article. (SB 143 is discussed in this post.) In response, Senator Fitz-Gerald has decided to add the key provisions contained in SB 143 into HB 1090, which also addresses sex offenses, including those committed against children. (HB 1090 has not escaped controversy either as related in this Denver Post article.) The unofficial preamended version of HB 1090 is available here. (This version includes the Senate committee amendments that have not yet been adopted by the entire Senate on Second Reading.)

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

Yesterday afternoon, the House Local Government heard SB 89. At the committee hearing, Representative Carroll introduced a strike below amendment for the Committee's consideration. (Instead of introducing amendments one by one, a strike below amendment strikes everything below the enacting clause, replacing it with the language of the strike below amendment.)

The strike below incorporates much of the reengrossed version of SB 89. Here is a break down on the pertinent provisions contained in the strike below (I have italicized the portions of the amendment that differ from the reengrossed version):

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SB 143, 'Concerning The Statute of Limitations for Civil Actions Alleging Unlawful Sexual Conduct,' is sponsored by Senator Fitz-Gerald and Representative Madden. This bill seeks to provide further protections to child victims of sexual abuse, including holding institutions accountable for preventing sexual abuse.

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The House Local Government Committee hearing on SB 89 has been moved to Tuesday, April 11. The Local Government Committee meetings begin at 1:30 p.m. We'll keep you posted as developments arise. (SB 89 is discussed in detail in this post.)

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SB 89 and SB 185 are scheduled to be heard by the House Local Government Committee on Tuesday, April 4. (The provisions of SB 89 are discussed here, and SB 185 is covered in this post.) The Committee meeting begins at 1:30 p.m. in House Hearing Room 0112. (A list of Committee members is available in this post.) SB 89 and SB 185 are fourth and fifth on the agenda, but bills may always be heard out of order. The House calendar provides that any bills not heard or completed on April 4th will be scheduled to be heard and completed on Friday, April 7th, time to be determined if such a meeting becomes necessary. We'll keep you posted on any developments.

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We have received a lot of questions concerning what documents associations may charge for in the post-SB 100 world. The answer to this question lies in why the documents are being furnished or copied. The following bullet points list the most common situations in which associations furnish or copy records for their owners.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Other Legislation 0 Comments Permalink

Originally set to be heard March 21 by the House Local Government Committee, SB 89 was taken off the calendar to be heard another day. As of today, the bill has not yet been re-scheduled. However, the committee will not be meeting next Tuesday, March 28th, so the earliest SB 89 will be heard will be Tuesday, April 4. We'll keep you posted as to when SB 89 finds its way back on the calendar.

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On March 2, Representative Stengel, facing an ethics investigation over his off-session pay, stepped down from his position as house minority leader. Following Representative Stengel's resignation from the position, Republicans elected Representative May as their new house minority leader. House Minority Leader May has taken himself off the House Local Government Committee and has appointed Representative Stengel to take his place. Click here for an updated list of the members of the House Local Government Committee.

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SB 185 (discussed in this post) will be heard by the House Local Government Committee on March 21, which meets at 1:30 p.m. (Click here for a copy of the bill.) SB 185 was introduced in the House on March 1 by its House sponsor, Representative Larry G. Liston. (Click here for a list of the members of the Local Governement Committee.)

Posted By HindmanSanchez In CCIOA , Colorado Condominium Association Law , Colorado Homeowner Association Law 0 Comments Permalink

The House Local Government Committee hearing on SB 89 is scheduled for Tuesday, March 21 at 1:30 p.m. Click here for a list of the members of the Local Government Committee.

Interested citizens may testify to their views on the current version of SB 89 at this hearing. (Click here for tips on testifying in front of committee.) Like the Senate Judiciary Committee, during this hearing, the Committee will examine the details of SB 89 and determine what action to take on the bill.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Other Legislation 0 Comments Permalink

SB 89 has now been introduced in the House and has been assigned to the Local Government Committee. As of today, it has not yet been calendared for a hearing, but we'll let you know when it is scheduled.

The 11 members of the Local Government committee are as follows:

Representative Mary Hodge (Chairman) (D)
Phone:
mary.hodge.house@state.co.us

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Other Legislation 0 Comments Permalink

On January 13, Senator Lamborn introduced Senate Bill 06-185, entitled "Concerning the Protection of Homeowners in Small Common Interest Communities." Interestingly, SB 185 was assigned to the Senate Judiciary Committee, the same committee that heard SB 89. (Click here for a post listing the members of this Committee.) SB 185 proposes to extend the CCIOA exemption for small and limited expense communities created after July 1, 1998 to all small and limited expense communities, regardless of their date of creation.

Posted By HindmanSanchez In CCIOA , Colorado Condominium Association Law 1 Comments Permalink