HOA Legi-Slate

The Colorado legislature recently approved increased fees for courts effective July 1, 2008.  These increases apply to the initial filing fee for a lawsuit as well as other key filings that may occur in a case.  The increases range from $9.00 to $20.00 in county court matters and $15.00 to $204.00 in district court matters.  The fees were increased to aid in the construction of the new Ralph L. Carr Justice Center in Denver.

Posted By Loura K. Sanchez In Community Associations Miscellaneous 0 Comments Permalink

Most associations are being affected by the economy in one way or another. The biggest consequence is an increase in account receivables. As associations struggle with ways to collect unpaid assessments it is important to remember that:

• your collection policy must be followed
• if your policy doesn’t allow for deviations it should be amended
• if your policy allows for deviations make sure to document why the board is deviating from the policy.

Deviating from your collection policy – even if allowed- may lead to claims of discrimination. Two situations might be:

1. Association sues an owner with a Hispanic surname but doesn’t sue an owner with an Irish surname when both owners have similar balances;
2. Association doesn’t file a lien against builder or developer owned lots but does record a lien on other owners – many who fit within some protected class.

Think before you deviate…

Posted By Loura K. Sanchez In Community Associations Miscellaneous 0 Comments Permalink

Under QETP, the IRS and 29 state agencies have agreed to share information through a centralized database in an attempt to share resources and encourage businesses to comply with federal and state employment tax requirements. The intent is to disincentivise businesses from classifying workers as independent contractors to avoid payroll tax benefits, and workers’ compensation insurance. Auditors will be looking closely at independent contractor agreements and sharing information via the database.

The difference between an employee and an independent contractor lies in your ability as owner or manager to control how a worker performs the job. If you have the right to direct and control the worker’s job, the IRS says the worker is an employee even if you and the worker have agreed other wise. Key factors include:

• Amount of training provided.
• Amount of supervision needed.
• Compensation method (by the job or by the hour).
• Whether the worker’s expenses are reimbursed .
• Who furnishes the equipment or “tools of the trade.”
• How the worker can be terminated.

Posted By Loura K. Sanchez In Community Associations Miscellaneous 0 Comments Permalink

In our post on June 9th, we discussed the fines some homeowners could face for failing to care for trees located in the public right-of-way. Now the Denver City Council, at a meeting on Tuesday, has cautioned a representative from the Parks and Recreation Department to “take it easy with the fines.” According to an article in the Rocky Mountain News, city officials are worried the fines will be burdensome to some homeowners and actually have the opposite effect – discourage people from planting new trees. On the flipside, it’s a law that has been on the books for 50 years and the Parks and Recreation Department wants the authority to move forward with enforcing it to protect the tree canopy as well as pedestrians and traffic from falling trees. The majority of the citations are given for unhealthy, dead or dangerous trees. So, is it punitive? Or can it help to educate homeowners of their responsibilities in maintaining their communities?

Posted By HindmanSanchez In Community Associations Miscellaneous 1 Comments Permalink

Per a recent article in the Denver Post, property owners in Denver who fail to care for trees located in the public right-of-way in front of their homes could face fines ranging from $150 to $999. The public right-of-way is the strip of land between the sidewalk and the curb, sometimes called the “tree lawn.” The goal of the city is to keep trees in the community through proper maintenance. Sometimes, because this right-of-way is dedicated to the city, an association may not have much control over the maintenance of the area. This ordinance will give associations one more avenue, through city enforcement, to ensure their communities are well maintained and preserved.

Posted By Trisha K. Harris In Community Associations Miscellaneous 0 Comments Permalink

In order to help our clients in Weld county who are victims of yesterday's tornados, HindmanSanchez is collecting essentials for delivery next Wednesday, May 28, 2008.  Our hope is to deliver basic toiletries, bottled water, hand wipes, pet food, trash bags, gloves, etc. to associations which sustained damage to their homes and common areas.  If you would like to contribute please drop off your contributions to our office by Tuesday, May 27 at 5:00 pm.  Or, if you'd prefer to send us a check we will purchase items on your behalf.  We will recognize all contributions on our website.

Thank you for your help in strengthening Colorado associations.

HindmanSanchez P.C.
"Strength in Association"

Posted By Loura K. Sanchez In Community Associations Miscellaneous 0 Comments Permalink

A recent study “Understanding Mortgage Foreclosures in Denver”, conducted by the Office of Economic Development (OED) of the City and County of Denver, confirms what we have known for some time.  The rate of houses in our communities going into foreclosure has skyrocketed.  Between 2000 and 2006, the number of foreclosure filings in Denver alone increased more than four-fold, from 917 to 4,745.

The OED study provides a wealth of statistics and information.  However, it falls short of proposing the definitive solution to the problem. As Americans we are indoctrinated with the assumption that purchasing a home is the safest investment one can make in one’s lifetime.  Today that may not always be the case.  What is the cause of the current foreclosure crisis in our communities?  Is it the fault of predatory lenders? Are the uneducated and financially unaware buyers to blame?  I submit that the solution can be found within.

Living within one’s means is an invaluable survival tool in the current economy.  An anonymous quote found in the OED study sums up the way this tool is applied to the purchase and financing of real property: “Fall in love with the loan and not the property.”  If you are looking to buy another home or investment property, do your homework.  Ask questions if you do not understand the paperwork the lender has provided to you.  Shop around for a better deal. No one has your best interest at heart more than you.

Posted By Eric R. McLennan In Community Associations Miscellaneous 3 Comments Permalink

The nationwide trend of state legislators imposing some form of manager licensing is continuing with Virginia. A bill recently approved by the Virginia General Assembly will go into law on July 1, 2008, if signed by the governor. This bill allows managers to meet licensing standards by holding certification and designations awarded by CAI and NBC-CAM. The bill also creates an ombudsman system, similar to the Florida model, for handling homeowner complaints. 

If this is the trend, then perhaps it is advisable for managers and management companies to push to quickly obtain PCAM, CMCA and AMS designations to be “ahead of the curve” if such legislation comes to Colorado?

Posted By Loura K. Sanchez In Community Associations Miscellaneous 3 Comments Permalink

As we know, legislation affecting associations here in Colorado generally comes about because of alleged abuses in the industry and vocal owners who feel their rights are being unjustly infringed.  The attached story seems to have all the makings for potential legislation.  When an owner didn't like the actions being taken by his community (short-term rental restrictions), he decided to fight back.  He apparently obtained a significant number of proxies from other owners and used these proxies to remove the board who was making decisions he didn't like. The result is a questioning of proxies, the role of proxies in associations and just how much power boards and owners should have with respect to basic property rights.

Posted By Loura K. Sanchez In Community Associations Miscellaneous 0 Comments Permalink

In a Working Paper published by the Federal Reserve Bank of Boston, discussing the sub-prime market and its impact on home ownership, it found that condominiums and other multi-family homes have a 67-86% higher default probability than owners of single family homes. And if the condominium was purchased under a mortgage from a sub-prime lender, it is estimated that the default possibility is increased by 715%! This means that multi-family associations (condominiums and townhomes) should carefully budget for bad debt in the next few years. However, it is not all bad news…the paper also found that condominiums are more likely to sell compared to townhomes and single family homes so the chances of recovery on a lien is greater. So, make sure you are recording liens and carefully watching for-sale signs and listings.

Posted By Loura K. Sanchez In Community Associations Miscellaneous 1 Comments Permalink

The Foundation for Community Association Research has released the results of its Zogby International survey done in November of 2007. This survey affirms that a overwhelming majority of Americans who live in community associations are satisfied with their communities.  For a summary of the results click here.

Posted By Loura K. Sanchez In Community Associations Miscellaneous 4 Comments Permalink