HOA Legi-Slate

Earlier this week HUD and the Department of Justice released new guidelines related to the rights of persons with disabilities to make reasonable modifications to units and common elements. The new guidelines are in the form of questions and answers and address such issues as whether an association can require a specific contractor, or special liability insurance.  A copy can be found here or at this link on the HUD website. 

Posted By Loura K. Sanchez In Colorado Homeowner Association Law 0 Comments Permalink

Colorado Statute mandates the adoption of Responsible Governance Policy with respect to the collection of unpaid assessments. Setting aside that fact that it is required by law, a collection policy is important because it helps homeowners in the association understand the consequences of nonpayment of their assessments. Declarations can be lengthy and sometimes confusing documents for owners to read. However, collection policies should be written in language that is easy to understand. A collection policy promotes openness between the board of directors and the homeowners and makes the intentions of the association clear with respect to collection of unpaid assessments. It also aids in facilitating equal treatment of all delinquent owners.  Click here to view a sample collection policy.

Posted By Brianna L. Schaefer In Colorado Homeowner Association Law 0 Comments Permalink

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

We often hear stories of well-meaning association boards that make the decision to withhold due to "privacy concerns" certain association records from an owner requesting them. The decisions to withhold certain association records are explained along the lines that it would be an invasion of privacy:

• to release the names and addresses of other association members;
• to provide a list of owners delinquent in their assessments;
• to let an owner inspect covenant complaints filed by or against other owners, etc.

However, none of the above reasons are valid ones for refusing an owner request to inspect and copy such association records.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , SB 100/SB 89 Resources , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

Signed into law on May 26th, SB 89 requires associations to adopt a written procedure by January 1, 2007, concerning how disputes between owners and the association are addressed. To assist you in complying with this requirement, we have posted three different ADR policies for your use. Click here to access these policies.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , SB 100/SB 89 Resources 0 Comments Permalink

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?

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , SB 100/SB 89 Resources 0 Comments Permalink

SB 89 amended the disclosures that sellers of residential property located in a common interest community are required to make. These required disclosures are addressed outside of the Colorado Common Interest Ownership Act ("CCIOA") in section 38-35.7-102 of Colorado's statutes. This post addresses what associations may charge for providing association documents to either the seller or, at the seller's authorization, to the buyer in conjunction with the sale of a unit within a common interest community.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 2 Comments Permalink

With Governor Owens's signature, Senate Bill 89, the "SB 100 Clean-up Bill," is now law. SB 89 addresses many parts of SB 100 that needed clarification due to ambiguous or conflicting language. In addition, SB 89 modifies some of the requirements implemented by SB 100 that failed to consider the actual manner in which associations operate or had unintended consequences. With the exception of two provisions (the adoption of a dispute resolution policy and a portion of the seller disclosure section), SB 89 is effective on the Governor's signature, May 26, 2006. (Click here for a copy of the new law.)

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

As reported last month in this post, Colorado led the nation in foreclosures for the month of March. This Rocky Mountain News article reports that, unfortunately, Colorado has retained this spot for the month of April. As discussed in this post, a bill is before the Governor that proposes several changes to Colorado's foreclosure laws. It is hoped that several of these changes will help owners to keep their homes. It will be interesting to see how this proposed foreclosure bill may affect Colorado's foreclosure numbers if signed into law.

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

House Bill 06-1387, which passed its third reading in the Senate on May 3, 2006, but which has not yet been signed into law, contains numerous proposed revisions to Colorado's foreclosure laws (C.R.S. § 38-38-101, et seq.). The bill is now on its way to the Governor for consideration. The intent of the bill is to modernize and simplify the process of foreclosures within Colorado, while also providing owners with a more realistic opportunity to retain ownership of their property. The most significant change to the bill as it relates to community associations is the expansion of the time in which to cure and the elimination of the owner's right to redeem.

Posted By Loura K. Sanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 0 Comments Permalink

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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Legislative Miscellaneous 4 Comments Permalink

The Denver Post reports that the Colorado lawmakers finished the four month session late Monday night. SB 89 took almost the entire four months to travel through the legislature, but is now on the way to Governor Owens. (Click here for the version, although not yet in the final format, that Governor Owens will consider.) Unlike the Florida legislature, SB 89 was the lone bill dedicated solely to HOAs and, if passed, will bring welcome clean-up amendments to SB 100. (The status of the other bills introduced that will have impact on HOAs will be summarized in upcoming post.)

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

As discussed in this post, a conference committee had been requested to address some outstanding issues remaining in SB 89. However, it appears that these issues have been resolved without the need to amend the bill further. It is expected that the conference committee will be dissolved and the Senate to concur with the House amendments at some time today. At this point, the bill will be sent to Governor Owens for consideration.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

This morning, Senator Hagedorn requested that SB 89 be sent to conference committee. (A conference committee is made up of members from both houses, who try to work out outstanding issues left in the bill that were not resolved in committee or by a floor amendment.) He cited the reason for his request as issues brought up by Colorado Ski Country USA, the trade association for Colorado's ski resorts, and the National Association of Industrial and Office Properties ("NAIOP").

We understand these issues concern the amendments made in the House to section 38-33.3-217 as it was amended in the Senate. The Senate version of this provision would have exempted declarant-controlled, phased communities, and mixed-use communities from the 67% cap on the percentage of affirmative votes that may be required to amend an association declaration. Representative Carroll was concerned that these proposed exemptions were too broad and put a lot of effort into compromising with the interested parties. Currently, Section 217 proposes to exempt both declarant and phased-communities. (A phased community is defined as a community in which the developer retains development rights.) It is our understanding that she remains opposed to reverting back to the Senate version of the section.

We'll update you on the conference committee events as they transpire.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

Late yesterday afternoon, SB 89 passed its final reading in the House with a 64-1 vote. (The no vote came from Representative McCluskey). SB 89 will now return to the Senate where the Senate will either accept the House amendments or call for a conference committee to reconcile the two versions. We expect this to happen in the next few days. Click here for the most current version of SB 89. (This is the "rerevised" version, which contains all the amendments adopted by the House.)

Both this post and this post discuss the contents of the rerevised SB 89.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

SB 89 passed its second reading in the Colorado House of Representatives this afternoon. In addition to the Local Government Committee report (discussed here), Representative Carroll introduced two floor amendments, both of which were adopted.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

The Larimer County Republican Party passed a resolution concerning HOAs earlier this month. Resolution #24 begins by declaring that HOAs impact the property values, property and personal rights, as well as the living environment of those living within the HOA community. It goes on to state that many HOAs have abused their authority and have failed to follow the law or meet their fiduciary duties. The Resolution then urges the Colorado legislature to make HOAs legally accountable to their members by allowing members to take pro se legal action against their association to recover damages, remove board members etc. (This resolution, however, is suggesting legislation to the General Assembly and does not change current state law.)

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

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

This Denver Post article reports that Colorado had the highest ratio of foreclosures in the country this past March. Hopefully, if HB 06-1387, entitled 'Concerning Real Estate Foreclosures,' passes, the number of foreclosures in Colorado will decrease. Sponsored by Representative Garcia and Senator Veiga, the bill would allow the homeowner a longer period to cure a default before the foreclosure sale by lengthening the pre-sale cure period by 65 days. (Currently it is 45 to 60 days.) To do this, the owners' redemption period, currently 75 days after the sale, would be eliminated. Public trustee sales would, therefore, occur 110-125 days after the recording of the Notice of Election and Demand ("NED"). Click here for a summary of the Colorado foreclosure process.

Posted By HindmanSanchez In 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.

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

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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

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.)

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

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):

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 1 Comments Permalink

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.

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

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.)

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 1 Comments Permalink

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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

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 , Senate Bill 05-100 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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

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.

Posted By HindmanSanchez In Colorado Condominium Association Law , Colorado Homeowner Association Law , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink

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 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 , Senate Bill 06-089: The SB 100 Clean-Up Bill 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 , Senate Bill 06-089: The SB 100 Clean-Up Bill 0 Comments Permalink