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Introduction and Legislative interest in HOAs

HOA Records – HB12-1237 (Williams/Harvey)
Key Elements and Aspects

Records Required to be Kept for Inspection

Inspection and Copying

Uses of Membership Lists Remain Restricted

Records that May be Withheld

Records that Must be Withheld

Associations are not obligated to Compile or Synthesize Records

Recommendations to HOAs and Managers on the New HOA Record Law

Other 2012 Legislation
Passed - Regulation of Notaries Public– HB12-1274 (Swerdfeger/Jahn)

Passed - Protecting Consumers Who Engage Roofing Contractors – SB 12-38
Tochtrop/Priola)

Key Elements of the Bill

Passed - Obligations of Residential Nonprofit Corporation to its Members – SB12-24 (Harvey/Holbert)

Note:  Residential nonprofit corporations operate retirement communities.  These communities are not common interest communities, where a member is an owner.  These communities are based on membership, with initiation fees, monthly fees, etc.  Since these communities are operated similarly to common interest communities, legislation that relates to these communities is monitored by the CLAC.  Recent legislation is seeking to bring protections to the members, protections similar to those provided under CCIOA.

Key Elements of the Bill

Defeated - Deceptive and Fraudulent Re-sales of Timeshares is Prohibited – HB 12-1116 (Murray/Nicholson)

Key Elements of the Bill

Defeated - Uniform Residential Landlord & Tenant Act– SB12-70 (Aguilar/Wilson)

Key Elements of the Bill

2013 Legislation Expected

Enforcement of CCIOA and Governing Documents.  Based on owner complaints to the HOA Information Office and Resource Center, as well as complaints owners make to their legislators about their problems enforcing their rights under the governing documents and applicable parts of CCIOA, legislation to ease enforcement of those rights is expected in 2013.

Manager/Management Company Credentialing or Licensure?  The Community Associations Institute (CAI) through its Colorado Legislative Action Committee decided not to pursue a bill to regulate managers in 2012.  CAI made this decision after the state, through its Department of Regulatory Agencies (DORA), concluded that the best course of action is to regulate management companies, not managers.

The state published that report as a part of a “Sunrise Review” on whether licensing of community association managers in Colorado is necessary.  To see a copy of the Sunrise Review Report, visit our website.

A Sunrise Review Application submitted by CAI in the fall of 2011 recommended the licensing of community association managers.  Currently, community association managers are unregulated.  The state disagreed.

In its report issued March 2, 2012, DORA examined whether managers pose potential harm to the residents and owners in community associations.  DORA also examined the financial costs associated with potential regulation.

In the spring of 2012, CLAC concluded that state regulation of management companies would not provide protection to all Coloradoans living in homeowners’ associations.

DORA’s conclusion that “for the most part, community association’s contract with ‘management companies’ not individual community managers” does not accurately reflect the fact that many Colorado associations retain the services of managers who are not affiliated with a management company.

A bill, on possible regulation or licensure of managers and/or management companies, is possible in 2013, but is not probable.

Notice Requirement (to all Members) of Board Meetings.  As a result of complaints received, some sort of notice of board meetings to members or limitations on board meetings may be sought.

Transparency.  This topic may also generate a bill, based on complaints filed with the State office.

Governance Policies.  Since governance policies were required of some HOAs in 2005, the legislature has returned to this topic several times.  As such, a bill on this topic may also be introduced in 2013.  Nine policies are now required to be maintained by most HOAs (those not exempt from this requirement).  These are:

  1. Collection of Assessments
  2. Conduct of Meetings
  3. Records Inspection
  4. Investment of Reserves
  5. Reserve Studies and Funding
  6. Covenant and Rule Enforcement
  7. Dispute Resolution (ADR)
  8. Conflicts of Interest
  9. How Policies are Adopted and Amended

Political Context of Common Interest Communities and HOAs  

Legislators hear frequently about issues in HOAs and their interest in responding to constituent complaints remains high and is not typically partisan.

Many legislators have served on the board of directors of an HOA.

Political Recommendations to HOAs

HOAs, their board members and management should reach out to their state legislators, in the State House of Representatives and in the State Senate.  A relationship with your legislators is critical, before it is needed.  Then, when an issue arises, it can be better addressed.

To find your state legislator, visit Project Vote Smart’s website at http://www.votesmart.org and follow the directions.  After you find out who they are, contact your state legislators!  Perhaps your HOA can invite your legislators to a board meeting, member meeting, community picnic or other event.

If an issue arises with either of your state legislators, refer the resident and/or the legislator to the CLAC.  The CLAC and its lobbyists, have extensive relationships with legislators.  The CLAC has created several suitable circumstances in which to articulate our policy positions, build mind-share and work with legislator champions to advance and protect the interest of those whom we serve.