HOA Legi-Slate

2010 Colorado Legislative Tracking Report

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

On March 3rd, the Colorado House Committee on Business Affairs and Labor passed a retooled version of House Bill 1278 and referred the bill to the House Appropriations Committee for consideration.  The amended version of HB 1278 does not include an advocacy role for an ombudsman.  Instead, the amended bill focuses on information gathering and education with the following provisions:  

1. Registry for Associations.  Under the Auspices of the Division of Real Estate, homeowner associations will be required to register on a yearly basis.  The purpose of the registry is for the State of Colorado to get a handle on how many associations actually exist in Colorado and to be able to communicate with those associations.  The current anticipated cost of the registration is $20.00 for the first year and is expected to reduce to approximately $15.00 for the second and subsequent years.  However, an updated fiscal note is being prepared which will take into account the retooled version of the bill.  We will provide you with more information on the anticipated cost for associations as it becomes available.
    
2. Track Inquiries & Complaints.  The Division of Real Estate will also be responsible for tracking inquiries and complaints relating to homeowner associations.  The purpose of this provision is to determine whether there are any trends of concern relating to the complaints.  This data will be utilized to determine whether future changes to the regulation of associations are necessary.  Revisions to CCIOA are currently based upon anecdotal complaints received by legislators and do not necessarily reflect trends in associations.  
    
3. Information Clearing House.  The bill also provides that the Division of Real Estate will act as a clearing house for information concerning the rights and duties of unit owners, declarants, and homeowner associations.  

We will continue to keep you updated on HB 1278.

Posted By Molly Foley-Healy In Current Year Legislation 6 Comments Permalink

On Wednesday, March 3rd, the Colorado House defeated HB 1290 by a slim 3 vote margin.  Had HB 1290 passed the House and had it ultimately been signed into law, it would have permitted a small common interest community to exempt itself from most of the provisions of the Colorado Common Interest Ownership Act.

Posted By Molly Foley-Healy In Current Year Legislation 1 Comments Permalink

On February 23rd, the House Committee on Local Government passed an unamended version of House Bill 1290 out of Committee to the full Colorado House of Representatives for action.  The bill that will be acted on by the House allows a small common interest community to exempt itself from most of the provisions of the Colorado Common Interest Ownership Act ("CCIOA").  A small common interest community: (a) contains no more than 20 units; (b) does not impose assessments of over $400.00 per year (adjusted for inflation); and (c) has annual revenues or expenses of less than $250,000 per year. 

CAI's Colorado Legislative Action Committee ("CLAC") is asking that you contact your State Representatives today to ask them to oppose HB 1290 - since homeowners living in small common interest communities deserve the same protections that homeowners living in larger associations are afforded under CCIOA.  

Attached is a Position Paper created by CLAC which more fully explains the problems with HB 1290.   

Please utilize Project Vote Smart to locate the contact information for your State Representative.  Simply type in your zip code on the left hand column of the webpage where it says "Find Your Representatives."

Posted By Molly Foley-Healy In Current Year Legislation 1 Comments Permalink

2010 Colorado Legislative Tracking Report

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

Yesterday, the Colorado House Committee on Business Affairs and Labor took testimony on and debated the current version of House Bill 1278.  As outlined in our February 9th posting on HOA Legi-Slate, the bill as introduced would create an Office of the Ombudsman with the following powers:

1. Advocate for the rights of unit owners in the governance of associations;
2. Offer to mediate disputes between unit owners and their associations;
3. Act as a clearing house for information concerning the rights and duties of unit owners, declarants and associations;
4. Report to the Division of Real Estate suspected violations under the legislation or of the Division's rules; and
5. Report other suspected violations of the law to the appropriate authorities.

Posted By Molly Foley-Healy In Current Year Legislation 6 Comments Permalink

On Thursday, February 18th, we posted a Call to Action on HOA Legi-Slate asking each of you to contact your State Senators to tell them to oppose SB 93 which was scheduled to be voted on by the Colorado Senate that day.  A vote on SB 93 was not held on the 18th and the bill will be taken up by the Senate for action this Thursday.   
 
SB 93, as amended, addresses public trustee foreclosure sales and the ability of the purchaser of a property foreclosed upon by a lender ("certificate of purchase holder") to pay off junior lienors (like homeowner associations) that have a right to redeem the property.  While the concept of junior lienors being paid off by certificate of purchase holders is not a bad concept - the amended version of the bill which will be voted on by the full Senate is one-sided and does not provide any protections to ensure associations will receive full payment of their liens in an appropriate manner.
 
Please contact your State Senators by Thursday to ask them to vote NO on SB 93!  Tell your Senators that:

1. SB 93 creates uncertainty for homeowner associations.  SB 93 requires an association  to accept payment from the certificate of purchase holder.  However, the bill does not require the certificate of purchase holder to tender payment of the full amount of the association's lien.  Are associations required to accept less than full payment of the lien?  What recourse do associations have if they do not receive payment for the full amount of the lien?  The bill is silent on these issues and creates uncertainty and loss of revenue for associations. 
2. SB 93 is vague and creates unreasonable expectations for homeowner associations.   SB 93 does not specify when the certificate of purchase holder may tender payment to an association.  Is an association required to accept payment once it has already redeemed the property?  Is a volunteer or agent of the association required to be available to accept payment anytime of the day before the redemption period ends?  Are board members required to accept payment at their places of business?  Are board members required to sit home and wait for certificate of purchase holders to make payments?  All of these questions will end up being decided in the courts.  Associations cannot afford this litigation. 
3. SB 93 will create a procedural mess.  The amended version of SB 93 attempts to put into the highly procedural public trustee foreclosure statute the concept that certificate of purchase holders have the right to pay off junior lienors.  However, the bill does not address when in the complicated timeline these payments can be made and how these payments affect the inconsistent procedural rights afforded junior lienors in the statute.

Attached is a Fact Sheet that more fully explains the problems with SB 93 and a copy of the Pre-Amended Bill.

Please utilize the Project Vote Smart weblink below to locate the contact information for your State Senator.  Simply type in your zip code on the left hand column of the webpage where it says "Find Your Representatives." 

http://www.votesmart.org/index.htm 

Posted By Molly Foley-Healy In Current Year Legislation 1 Comments Permalink

CALL TO ACTION

URGE SENATORS TO OPPOSE SB 93!!

SB 10-93 Orderly Resolution of Claims in Foreclosures Involving Junior Liens - By Senator Lundberg

Community Associations Institute Urges you to OPPOSE SB 93

As amended, SB 93 permits a certificate of purchase (COP) holder to pay a junior lienor the secured debt without the ability of the junior lienor to refuse payment and without adequate procedural safeguards to protect the interests of homeowner associations under Colorado law.

Please call your Senator now to oppose SB 93 for the following reasons:

·         As amended, the bill creates uncertainty for homeowner associations.

·         Homeowner associations will be required to accept tender regardless of the amount or accuracy of the amount.  This will lead to a loss of revenue for associations during tough economic times with no recourse against the COP holder.

·         This bill will create a procedural disaster.

Attached is a fact sheet and a copy of the pre-amended bill.

Please utilize the Project Vote Smart weblink below to locate the contact information for your State Senator.  Simply type in your zip code on the left hand column of the webpage where it says “Find Your Representatives.”

http://www.votesmart.org/index.htm

Posted By Molly Foley-Healy In Current Year Legislation 7 Comments Permalink

On February 5th, House Bill 1278 was introduced by Representative Su Ryden in the House and is being sponsored in the Senate by Senator Morgan Carroll.  The bill creates the Office of the HOA Ombudsman.  Under the bill, as currently written, the Ombudsman would be empowered to:

1. Advocate for the rights of unit owners in the governance of associations;
2. Offer to mediate disputes between unit owners and their associations;
3. Act as a clearing house for information concerning the rights and duties of unit owners, declarants and associations;
4. Report to the Division of Real Estate suspected violations under the legislation or of the Division's rules; and
5. Report other suspected violations of the law to the appropriate authorities. 

Posted By Molly Foley-Healy In Current Year Legislation 26 Comments Permalink

On Monday, February 1st, the Colorado Senate Committee on Business, Labor and Technology heard testimony on Senate Bill 93 which we discussed in our January 25th posting on HOA Legi-Slate.  In short, the bill would require an association - or an investor who was assigned the association's lien rights - to accept payment of the lien by the purchaser of the property following a public trustee foreclosure sale.  Payment of the lien would act to extinguish the redemption rights on the lien.   

Testimony on the bill included assertions that associations are essentially auctioning off these lien rights to the highest bidders and are making money hand-over-fist.  There was also testimony that the investors who purchase these lien rights are unscrupulous in driving down the purchase price of properties at foreclosure sales - thereby reducing their costs to redeem.

In addition to considering the remedies outlined in the legislation, Senators kicked around the idea of extinguishing the redemption rights of all junior lienors and to require them to protect their liens by bidding at the foreclosure sale.  Obviously, requiring an association to bid on property at a foreclosure sale to protect the association's lien would be a horrendous result.  The bill was ultimately tabled by the Committee and Senator Lundberg was directed to meet with stakeholders to hammer-out a mutually acceptable solution.  

Tell us what you think:

1. Do you think the ability of associations to assign lien rights is an important collections tool?
2. Would you support the termination of redemption rights which would require associations to bid on the property at a foreclosure sale to protect the value of the association's lien?

Posted By Molly Foley-Healy In Current Year Legislation 1 Comments Permalink

On January 20th, Senate Bill 93 was introduced in the Colorado General Assembly by Senator Lundberg.  This bill would require all junior lienors to accept tender of payment of the junior lien amount from the purchaser of the property at a public trustee foreclosure sale.  In the association context, if a purchaser tenders payment to an association to satisfy the association's lien -  that payment must be accepted, would extinguish the association's lien and eliminate the association's right to redeem the property or assign the lien.    

1. Submit with the notice of intent to redeem, a signed statement of the amount payable to the association on the association's lien; 
2. Accept payment of the lien amount which is tendered by the purchaser within 10 business days following the public trustee foreclosure sale;   
3. Execute a release of lien upon receiving tender of payment.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

It has been less than one week since the Colorado General Assembly convened for the 2010 legislative session and at least four bills of interest to associations have already been introduced.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

The Colorado General Assembly convened today for the 2010 legislative session. To what extent associations will be the subject of legislation remains to be seen.  However, we do know this much - bad press and complaints to legislators about associations drive legislation.  Do you think associations will be front and center again this legislative session?  Tell us what you think.  
 
HindmanSanchez remains committed to providing you with up-to-date information on legislation affecting associations.  Keep your eye on HOA Legi-Slate for updates and information as it becomes available.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

On Tuesday, December 22nd, Governor Ritter appeared at a press conference held at the Clements Community Center in Lakewood to unveil legislation that will permit lenders to expedite the public trustee foreclosure sales of abandoned properties.  Representative Dianne Primavera, Representative Jeanne Labuda and Senator Michael Johnston will sponsor the legislation.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

Don’t forget that Senate Bill 09-087 (“SB09-87”) requires that all special districts must provide to their electors a notice containing certain basic information about the district by January 15^thof each year.

SB09-87 authorizes several methods by which a district can make its notice available to its constituents.

*         Posting the information on the official website of the Special District. SDA members may have their notices posted on the SDA website at www.sdaco.org;

*         Mail the notice to each household where one or more electors of the Special District resides;

*         Include the notice as a prominent part of a newsletter, annual report, billing insert, letter, voter information card or other notice of election or informational mailing.

This notice must be filed with the county Clerk and Recorder and be available at special districts principal business office.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

As we posted in July, Senate Bill 09-87 becomes effective September 1, 2009.  This bill  requires special districts to prepare annual disclosures of certain information to every elector of the district.  A change to this requirement has been made which now calls for all posted notices of regular and special meetings of a special district to be posted a FULL 72 hours before the meeting time.  The prior version of the statute required notices to be posted "at least three days prior to" a meeting.  Recent cases have made it clear that courts look very closely at the technical aspects of special district meetings so following the law carefully is very important.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

On September 1, 2009, Senate Bill 09-87 becomes effective. This bill requires special districts to prepare annual disclosures of certain information to every elector of the district. Disclosures must be made between November 16th and January 15th of each year. The annual disclosure includes but is not limited to:

• The address and telephone of the principal business office;
• Names of the board members;
• Times and places of the regularly scheduled meetings including the date of the election of board members;
• Procedure and time to submit a self-nomination form for the election;
• The current mill levy, and total ad valorem tax revenue received during the last year;
• A statement that an application to request permanent mail-in voter status can be obtained from the county clerk, or on-line from the secretary of state, and can be returned to the county clerk and recorder of the county or counties in which the district is wholly or partially located;
• The address of any web site on which the special district’s election results will be posted.

The annual disclosure can be mailed to each individual elector or may be included as a prominent part of a newsletter, annual report, billing statement or other informational mailing. If the district has an official website, which is linked to the Division of Local Government’s website, the annual disclosure information may also be posted on the district's website. Special districts must file a copy of the disclosures with the clerk and recorder of each county in which the district is located as well as with the Division of Local Government. Please contact our office if you would like us to assist your district with preparing its annual disclosure.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

The Colorado Common Interest Ownership Act (CCIOA) is based upon the Uniform Common Interest Ownership Act (UCIOA).  UCIOA was recently adopted by the American Bar Association House of Delegates.  The 2008 Uniform Common Interest Ownership Act attempts to resolve a number of concerns related to the operation and management of common interest communities.  Generally, states that have acts based on uniform statutes will consider modifications once the uniform act is updated.  That may mean that CCIOA could be substantially overhauled in the near future.  In anticipation of that, if you have any specific concerns about CCIOA provisions or there are things you would like to see added to CCIOA please let me know as we hope to be actively involved in any rewrite of CCIOA.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

HB 1359 was signed by Governor Ritter on May 15. It becomes effective on August 5, 2009 and applies to all common interest communities. So what does your association need to do to comply?

1. Become educated about the types of reserve studies available and costs. Attend our educational programs on June 4, 2009 to learn more about reserve studies, investment vehicles and funding options. (We currently have a waiting list for these programs.  Click here to add your name to the list.  We may add another session if there is enough interest.) 

2. Adopt a policy that addresses:
   a. When a reserve study will be done and how often if will be updated. Click here for our Best Practice recommendations.

   b. Whether your reserve study will be based on a physical and financial analysis. Click here for our Best Practices recommendations.                                            

   c. Whether the association has a plan for funding the work recommended in the plan and if so, the possible sources including use of regular assessments, special assessments, borrowing, etc.

The policy must be consistent with your governing documents and should be consistent with the association’s responsible governance policy on investment of reserves. We are happy to draft this policy for your association for a flat fee of $295.00.  And, if we prepared your investment of reserve policy, we’ll revise it for free.

3.   Follow your policy.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

On April 22, 2009, Governor Ritter signed House Bill 09-1220.  This bill relates to affordable housing in certain mountain common interest communities.  Specifically, the bill only applies to counties with populations of less than 100,000 and that have a licensed ski lift.  Also, Declarant-controlled communities are exempt from this bill.

The bill adds a new section to the Colorado Common Interest Ownership Act, at Section 38-33.3-106.5.  Essentially, the bill requires associations to permit owners to promote affordable housing through deed restrictions. Under the bill, an association may not prohibit a unit owner from:

(i) restricting the permissible sale price, rental rate, or lease rate of their unit, or

(ii)  subjecting their unit to occupancy or other requirements designed to promote affordable or workforce housing. 

Only the unit owner may occupy a unit that is under a restriction described above.

In addition, a future owner who purchases a unit under a restriction described above may lift the restriction as long as a similar unit in the same common interest community replaces the unit from which the restriction is lifted.

HB 09-1220 takes effect on August 5, 2009.

Posted By Melissa M. Garcia In Current Year Legislation 0 Comments Permalink

On May 5, 2009, we informed you in a posting on HOA Legi-Slate, that the Senate had just passed an amended version of House Bill 09-1359 ("HB 1359") which cleaned-up some language of the bill that addresses association reserve studies, dissemination of information to board members and qualifications of committee chairs.  Later that day, the Senate amended version of HB 1359 was sent back to the House which voted to concur with the Senate amendments.  That version of the HB 1359 has been sent to Governor Ritter today for action.  We fully expect Governor Ritter to sign HB 1359 into law.  
 
Reserve Studies
As we have addressed in previous postings on HOA Legi-Slate, the most significant portion of HB 1359 addresses the issue of reserve studies.  The original version of the bill, which would have required associations to have reserve studies conducted every three years beginning in 2010, has been amended to now require that associations must adopt a responsible governance policy concerning:  "When the association has a reserve study prepared for the portions of the community maintained, repaired, replaced and improved by the association; whether there is a funding plan for any work recommended by the reserve study and, if so, the projected sources of funding for the work; and whether the reserve study is based on a physical analysis and financial analysis.  For the purposes of this subparagraph (IX), an internally conducted reserve study shall be sufficient."   Unfortunately, this final version of HB 1359 does not clarify whether associations are actually required to have reserve studies conducted. 
 
Assuming HB 1359 is signed into law and a referendum petition is not submitted, this provision of the bill will go into effect on August 5, 2009.  In order to comply with the reserve provision of the HB 1359, associations will need to either amend their current SB 100 policy addressing investment of reserve funds or adopt an additional policy to comply with this provision of the bill.   HindmanSanchez is ready to assist your association with this process.  To learn more about your options send us an email to hoalaw@hindmansanchez.com.    
 
Dissemination of Information to Board Members
As we also discussed when HB 1359 was first introduced, constituent concerns received by Representative Andy Kerr were the impetus behind the inclusion of language in the bill that requires members of association boards to be provided with the information necessary to exercise their fiduciary duties.  That language has been cleaned-up and now provides in part: ". . . all members of the executive board shall have available to them all information related to the responsibilities and operation of the association obtained by any other member of the executive board.  This information shall include, but is not limited to, reports of detailed monthly expenditures, contracts to which the association is a party, and copies of communications, reports, and opinions to and from any member of the executive board or any managing agent, attorney, or accountant employed or engaged by the executive board to whom the executive board delegates responsibilities under this article."  Whether this provision of HB 1359 has the potential of interfering with the attorney-client privilege, is subject to debate.
 
Assuming HB 1359 is signed into law and a referendum petition is not submitted, this provision of the bill will go into effect on August 5, 2009.
 
Qualifications for Committee Chairs
The final provision of HB 1359 addresses the qualifications of committee chairs.  Working under the assumption that this bill will be signed into law, any committee chair appointed after August 15, 2009, "shall meet the same qualifications as are required by the governing documents of the association for election or appointment to the executive board of the association."  It's important to point out that this provision applies only to an individual appointed to preside over a committee of their association.  It does not require that other individuals appointed to participate on a committee of their association be eligible to be appointed to or run for a position on the board.
 
We will update you when Governor Ritter signs HB 1359 into law.  We will also be providing a legislative update on this, and other bills passed during the 2009 legislative session, to managers and board members on August 19, 2009.  To register to attend a legislative update session click here.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

Today, May 5, 2009, one day before the Colorado General Assembly is slated to adjourn for the session, the Senate passed an amended version of House Bill 09-1359 (HB 1359) which addresses association reserve studies, dissemination of information to members of boards and qualifications of committee chairs. 

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

The U.S. Senate voted 51-45 earlier today against the legislation that would have allowed bankruptcy judges to rewrite mortgage terms for struggling borrowers before they face foreclosure -- the so-called mortgage "cram-down" bill.  CAI National and the College of Community Association Lawyers were actively involved in educating legislators about the potential impact of the legislation on associations through out the nation.

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

On Monday, April 27, 2009, the House passed an amended version of House Bill 09-1359 ("HB 1359").  This legislation, introduced by Representative Andy Kerr, was granted late bill status and is speeding through the legislative process.  As you know, this legislation addresses reserve studies, information disseminated to members of boards of associations and who is eligible to be appointed as a committee chair.  Late last week, representatives of the homebuilders got involved in the legislation which led in part to "friendly amendments" that were passed last week on the floor of the House.   

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

One day after being introduced, House Bill 09-1359 (HB 1359) has cleared the first hurdle on the journey to final passage and is picking up speed.  Yesterday evening, the House Committee on Local Government referred HB 1359 unamended to the House for consideration.  Since the Colorado General Assembly is currently scheduled to adjourn on May 6, 2009, we expect this bill to be taken up quickly by the House. 

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

On Monday, April 20, 2009, Representative Andy Kerr introduced House Bill 09-1359 ("HB 1359") titled "Concerning the Governance of Common Interest Communities Under the Colorado Common Interest Ownership Act."  HB 1359 was granted late bill status and is the result of lengthy negotiations between interested parties.  The legislation has been assigned to the House Local Government Committee and is schedule for hearing today.  Since the legislature is slated to adjourn on May 6, 2009, this bill is expected to proceed quickly through the legislative process with very little opportunity for revision.    

Posted By Molly Foley-Healy In Current Year Legislation 1 Comments Permalink

On March 24, 2009, Governor Ritter signed into law HB 1091. This bill was introduced in response to the tragic deaths of the Lofgren family resulting from carbon monoxide poisoning.  As discussed in our January 14, 2009, and March 24, 2009 postings on HOA Legi-Slate, HB 1091 is a new law that outlines requirements for the installation and placement of carbon monoxide detectors in any single family dwelling or unit in a multi-family dwelling offered for sale or transfer.  The law goes into effect on July 1, 2009. 

What does this mean for community associations? In general, community associations are not directly impacted by the bill unless the association owns a lot or unit, as the bill requires the seller to install carbon monoxide detectors if offering a unit for sale/transfer. Associations may, however, be impacted post-installation. If the device is installed on the common elements, for example, most declarations require the condominium association to be responsible for maintaining, repairing and replacing the common elements and any improvements thereon, which would include the carbon monoxide detector. If, on the other hand, the device is installed on the unit, most likely the owner would be responsible for maintaining and inspecting the device. 

Although the law does not go into effect until July 1, 2009, associations should be proactive in both educating the membership of the new law and being prepared for its potential impact on maintenance obligations.  We recommend including a brief article in your next newsletter notifying the members of HB 1091 and providing resources for information and clarification, such as a link to HOA Legi-Slate.  We also recommend adopting a policy that clarifies the owner vs. association obligations over the devices.  For condominium and townhome associations in particular, the policy should clarify the boundaries of the unit, so it will be clear which portions of the detectors (if any) will lie on the common elements vs. the unit, and the associated maintenance obligations. With any type of community, the policy should make it clear that it is the owner's, and not the association's, responsibility to install the device. 

Please contact HindmanSanchez if you wish to have our assistance in drafting a carbon monoxide detector policy.  Because the law's impact will depend on the type of community, prices will vary.  We can draft a condominium policy for $395, a townhome policy for $225, and a single family home policy for $175.

Posted By Melissa M. Garcia In Current Year Legislation 0 Comments Permalink

Give a person a fish and they will eat for a day.  Teach that person how to fish, and they will eat for a lifetime.  If the purpose of the mortgage “cram down” provision of the Helping Families Save Their Homes Act of 2009 is to help people keep their homes and stabilize the housing market, then lawmakers must be sure that the help and stabilization provided is more than a temporary fix.  Any legislated adjustment of monthly payments must take into account maintenance and other associated costs inherent in the privilege of home ownership.  Those motivated to keep their homes and who benefit from the Act should likewise have a sense of duty to maintain and increase the value of their rescued asset.  This means upkeep, upgrades, and contributing to the value of the community as a whole.  If the house is located within a homeowner’s association, this means the payment of association dues.  Lawmakers: if you want the fix to be permanent, do not forget the duties that go hand in hand with privilege or your efforts will be for naught.  Allow for the adjustment of payments to a level that, when other necessary fees, costs and assessments are added thereto, the payment is still fixed at an amount affordable to the homeowner being assisted.

The Bill has been passed in the House of Representatives and has stalled in the Senate. Indications are that the Bill will not be put to a vote until at least after the Easter break. Passage of the Bill in the Senate is far from a given.  At least 60 affirmative votes will be needed to avoid a filibuster attempt by opponents.  In the long run, unless significant alterations are made to the Bill to protect the interest of community associations, its defeat may be the best result.

Posted By Eric R. McLennan In Current Year Legislation 0 Comments Permalink

Last year the Colorado Supreme Court ruled that Pre-Judgment Interest in construction defect actions is only payable from the time the plaintiff was deprived of the money or value of a property.  This ruling put into doubt at what point pre-judgment interest is calculated in Construction Defect Actions involving associations.  In an effort to clarify this issue, the Senate introduced "The Homeowners Protection Act of 2009" also known as SB 09-246.  The legislative intent of this bill is to "Require the award of interest to be paid as damages for a delay in performing an obligation, on construction defect claims, to encourage speedy resolution of claims, discourage meritorious claim payment delays, reduce the need for lengthy and costly construction defect lawsuits and trials".  In short, this bill will enable associations to recover prejudgment interest during the notice of claim and lawsuit process. The Senate has scheduled a hearing on this bill on April 1, 2009 at 1:30 PM.  You are encouraged to attend and support the Homeowners Protection Act of 2009.  You can also contact your state representative and senator to support SB 09-246.  Representative and Senate contact information can be found by clicking here.

Posted By David A. Firmin In Current Year Legislation 1 Comments Permalink

On March 19, 2009, House Bill 09-1091 ("HB 1091") was sent to Governor Ritter for signature.  As discussed in the January 14, 2009 posting on HOA Legi-Slate, HB 1091 was introduced in response to the tragic deaths of the Lofgren family resulting from carbon monoxide poisoning.  HB 1091, as sent to the Governor, outlines in part requirements for the installation and placement of carbon monoxide detectors as follows:

1. Any single family dwelling or unit in a multi-family dwelling offered for sale or transfer on or after July 1, 2009, will be required to have carbon monoxide detectors installed if the unit has a fuel-burning heater or appliance, a fireplace or attached garage;  
2. Rental units, with fuel-fired appliances or attached garages, that are altered, repaired or fuel-fired appliances are replaced on or after July 1, 2009, must be equipped with operational carbon monoxide detectors and landlords will be required to provide maintenance and replacement of the detectors when notified by tenants of such a need.
3. Rental units, with fuel-fired appliances or attached garages, with a change of occupancy on or after July 1, 2009, must be equipped with operational carbon monoxide detectors and landlords will be required to provide maintenance and replacement of the detectors when notified by tenants of such a need. 

The bill also outlines the types of carbon monoxide detectors that may be installed, the locations required for installation and the responsibilities of tenants in rental units. 

The Governor is expected to sign HB 1091 into law as early as today.

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

On March 16, 2009, Senators Josh Penry and Morgan Carroll introduced Senate Bill 09-249 ("SB 249") which would extend application of certain provisions of the Colorado Common Interest Ownership Act ("CCIOA") to small common interest communities that are currently exempt from complying with the provisions.  Representative Andy Kerr is the sponsor of the bill in the House. If enacted, SB 249 will require currently exempted small common interest communities to comply with provisions of CCIOA that pertain to:

• The display of American flags, service flags and political signs;
• Parking of emergency vehicles by residents employed as first responders;
• Trimming of vegetation for fire defense purposes;
• Modifications required for accessibility for a resident with disabilities; and
• Specified energy efficiency improvements.

• Cooperatives created on or after July 1, 1992, but prior to July 1, 1998, that contain only units restricted to non-residential use or contain no more than ten units and is not subject to developer rights.
• Planned Communities created on or after July 1, 1992, but prior to July 1, 1998, that contain no more than ten units, are not subject to developer rights, or if the planned community, in its declaration, provides that the annual average common expense liability of each residential unit may not exceed $300.00.
• Any Cooperative or Planned Community created after July 1, 1998, that contains only nonresidential units or contains no more than 20 units and is not subject to any development rights. 
• Any Planned Community created after July 1, 1998 that provides, in its declaration, that the annual average common expense liability for residential units shall not exceed $400.00 as adjusted by the Denver-Boulder consolidated metropolitan area consumer price index.  

Posted By Molly Foley-Healy In Current Year Legislation 0 Comments Permalink

EFFECTIVE MARCH 1, 2009,  if you provide health coverage to your employees, you likely have pressing obligations under the American Recovery and Reinvestment Act of 2009 a/k/a the "stimulus bill." 

Bottom line, if you have terminated any employees  since September 1, 2008, you will need to provide a notice to those employees and you will likely have to provide a reimbursable COBRA/health benefits continuation subsidy to those employees.

Posted By Loura K. Sanchez In Current Year Legislation 1 Comments Permalink

With the anticipated announcement by the Obama Administration of a foreclosure prevention and loan modification program, Fannie Mae has instituted another temporary halt to all foreclosure sales on occupied single-family properties scheduled to occur from February 17, 2009 through March 6, 2009.  Fannie Mae is also extending its temporary halt of all eviction proceedings through March 6, 2009.

Posted By Loura K. Sanchez In Current Year Legislation 2 Comments Permalink

Effective July 31, 2009, cigarettes sold in the State of Colorado will have to meet certain reduced ignition propensity standards, pursuant to legislation passed by the Colorado legislature last year. Numerous other states have similar laws. 

Although not readily apparent from the statute, reduced ignition propensity cigarettes are designed to self-extinguish before their entire length burns if they are not puffed on for an extended period of time. In order to meet the standards, most manufacturers use bands of different paper to create “speed bumps”, so when left unattended, the cigarettes will burn out when they hit one of the “speed bumps.”   

The hope is that mandating these cigarettes will result in a reduction of fires, as well as fire-related injuries, deaths, and damages, from unattended or discarded cigarettes. While primarily fueled by second-hand smoke and nuisance issues, some communities have sought to make their communities smoke-free by amending their declaration to prohibit smoking. Even though burn-out cigarettes will not eliminate second-hand smoke issues, having an avenue to reduce the risk of fire, without having to regulate residents’ behavior, is good news for condominium or townhome communities where residents share common walls.

Posted By Trisha K. Harris In Current Year Legislation 0 Comments Permalink

HB1276 requires lenders to defer foreclosures that have been initiated for 90 days if it is determined that a borrower is eligible for a loan deferment.  We can debate whether this is a good policy decision or not but I am more concerned about the impact on associations.  Under this proposed law, if an owner is "eligible for a loan deferment" a foreclosure would be deferred for 90 days so instead of the sale occurring within 120 days of the initiation of the foreclosure action it will now be 210 days or 7 months, at a minimum.  The likely result will be that the association's super lien no longer (if it every did) provides protection for the association and the assessments not paid after foreclosure.  I would encourage you to contact your representatives and voice your opinion on this bill.  If you're not sure who represents you click here and enter your zip code to find your representatives.

Posted By Loura K. Sanchez In Current Year Legislation 3 Comments Permalink

The 2009 Colorado Legislative is already under way and bills are being introduced daily.  It is our understanding that we will likely see a foreclosure cleanup bill introduced.  We will keep you up-to-date on this as well as other proposed legislation that may have an affect on community associations.  With the state of the economy, this legislative session may be very interesting!

Posted By Loura K. Sanchez In Current Year Legislation 0 Comments Permalink

HB 09-1091 was just introduced in the Colorado General Assembly and by all accounts is on the fast track to passage.  As a result of the tragic deaths of the Lofgren family due to carbon monoxide poisoning, this legislation - as introduced - would mandate in part that:

1. Any single family dwelling or unit in a multi-family dwelling offered for sale or transfer on or after July 1, 2009, would be required to have carbon monoxide detectors if the unit has a fuel-burning heater or appliance, a fireplace or attached garage;
    
2. Any new construction of a single family dwelling or unit in a multi-family dwelling in which building permits are issued on or after July 1, 2009, would be required to have carbon monoxide detectors if the unit has a fuel-burning heater or appliance, a fireplace or attached garage;
    
3. Rental units must be equipped with carbon monoxide detectors and landlords would be required to provide maintenance and replacement of the detectors when notified by tenants of such a need.

Posted By Molly Foley-Healy In Current Year Legislation 4 Comments Permalink