Trend Towards Increased Legislation Affecting Associations Continues
As was expected the trend towards increased legislation affecting associations continues. In New Jersey, two homeowners' association bills are pending. One bill (S805) requires all associations with more than 10 units to hold open meetings and elections, give residents access to records, limit fines, and employ competitive bidding on contracts over $17,500. This bill is very similar to some of the requirements contained in Colorado's SB100. However, if approved the bill would also empower the New Jersey Department of Community Affairs to regulate boards and levy penalties for violations, including removing board members from office. The second bill (S1608) in New Jersey limits the ability of boards to bring lawsuits against homeowners and would allow board members to be held personally liable for breaking the law (read related article).
These types of bills are clearly a reflection of the continuing struggle between owner rights and association rights. Continued abuses by some associations whether perceived or real will only fuel the fire to more legislation restricting rights of associations. So, even if your association is not governed by CCIOA, it is advisable that your association incorporate and comply with many of its provisions including good governance policies and annual disclosures.Clearly, our Colo. legislators will feel compelled to meddle further with our statutes in order to attempt to remedy the perceived abuses of a few communities. One bad apple can spoil the barrel; we feel that our covenant-controlled HOA may be the barrel.