When did CCIOA become effective?

July 1, 1992

What is a small planned community exempt from CCIOA?

A planned community created between July 1, 1992 and June 30, 1998 which contains no more than 10 units and is not subject to development rights is exempt from most of CCIOA unless the declaration subjects the community to CCIOA.
A planned community created after July 1, 1998 which has no more than 20 units and is not subject to development rights is exempt from most of CCIOA unless the declaration subjects the community to CCIOA.

Small associations are still required to follow CCIOA’s public policy restrictions.

What is a limited expense community exempt from CCIOA?

A planned community created between July 1, 1992 and June 30, 1998 which provides, in its declaration, that the average annual assessment is no more than $400 (not including optional user fees and insurance premiums) is exempt from most of CCIOA unless the declaration subjects the community to CCIOA.    For communities created after July 1, 1998, the assessment limit is $400, with an automatic CPI increase.  A community is not a limited expense community simply because its assessments are less than the cap.  The declaration must impose a limit on the annual common expense liability (e.g., assessments) to qualify as a limited expense community.

Limited expense communities are still required to follow CCIOA’s public policy restrictions.

What is a large planned community?

A large planned community is one consisting of at least 200 acres approved for development of at least 500 residential units (no timeshares) and 20,000 square feet of commercial use.  This type of community may be exempt from many provisions of CCIOA (mostly development related), but the developer does need to record a certain affidavit for this to apply.

Are any pre-CCIOA communities exempt from all of CCIOA?

Not completely.  However, a pre-CCIOA planned community of no more than 10 units, with no development rights, is exempt from most of CCIOA.  CCIOA’s public policy restrictions still apply.

What is the definition of a “Manager”?

As defined by C.R.S. § 12-61-1001 a “Manager” is:

  • The chief executive officer (CEO) of an HOA management company
  • Anyone who supervises a manager
  • A person who performs 2 or more of the following services:
    • Receiving, depositing, controlling or disbursing association funds, preparing budgets or preparing other financial documents
    • Assisting in reserve fund plan creation and implementation
    • Preparing notices of meetings (board or member meetings) or conducting these meetings
    • Coordinating maintenance of the HOA or contracts for those services
    • Performing inspections, administering ACC applications and keeping records of violations
    • Performing other services related to day-to-day operations
What is the definition of “Unit”?

Unit is defined as a physical portion of the community designated for separate ownership or occupancy. Unit boundaries are described or determined from the declaration.

What is the definition of “Declaration”?

Declaration is defined as any recorded instrument that creates the community, including any amendments and plat maps.

What is the definition of “Common Interest Community”?

A Common Interest Community is real estate described in a declaration with respect to which a person, simply because of ownership, is obligated to pay assessments.  A Common Interest Community is created by recording a declaration.

What is the definition of “Common Elements”?

Common Elements are defined as:

  • Condominium: everything but the units
  • Planned Community (townhomes, detached single family homes): real estate owned or leased by the association, except units.

Many documents refer to Common Elements as Common Area.

What is the definition of “Limited Common Elements”?

Limited Common Elements are any portion of the common elements allocated in the declaration for the exclusive use of one or fewer than all the units, such as parking spaces and storage spaces.

Unless otherwise provided in the declaration, CCIOA provides that the following are limited common elements: chutes; flues; ducts; wires; conduits; bearing walls and bearing columns, inside or outside a unit but serving only that unit; shutters; awnings; window boxes; doorsteps; stoops; porches; balconies; patios; exterior doors and windows.

How are taxes on common elements assessed?

The tax value of the common elements is allocated to each owner on the tax statements from the county.  Associations should not receive tax statements on common elements from the county.

In what areas of public policies does CCIOA supersede an association’s declaration (both pre- and post CCIOA)?

Public policies that supersede a conflicting declaration restriction include:

  • American flag
  • Military service flag (during time of war or armed conflict)
  • Political signs
  • Emergency vehicles
  • Creation of defensible space
  • Flammable roofing materials (cedar shakes)
  • Reasonable modifications (fair housing)
  • Xeriscape
  • Renewable energy generation devices
  • Energy efficiency measures
  • Electric vehicle charging stations
What are renewable energy generation devices?

Solar energy devices or wind-electric generators.  Associations may adopt reasonable rules regarding installation, but may not prohibit these.

What are energy efficiency measures?

Energy efficiency measures include:

  • Awnings, shutter, trellis, ramada, shade structure marketed to reduce energy consumption
  • Garage or attic fan
  • Evaporative cooler
  • Energy efficient outdoor lighting devices
  • Retractable clotheslines

Associations may adopt reasonable rules regarding installation, but may not prohibit these.

Can an owner install an electric vehicle charging station?

Yes, an owner may install an electric vehicle charging station at their own expense.

If the charging station is installed on a limited common element, the system must comply with the governing documents and the owner will need to agree with the Association’s design specifications, use a licensed qualified electrical contractor and provide proof of insurance.

What is the Statute of Limitations on building restrictions?

1 year from the date the violation was noticed or should have been noticed.

Is an association required by CCIOA to follow alternative dispute resolution methods?

CCIOA encourages alternative dispute techniques, such as mediation and arbitration, but does not require them.  Associations are required to adopt a policy regarding alternative dispute resolution.

What information must the declaration contain in a post-CCIOA community?

A declaration for a post-CCIOA community must contain the following:

  • Community name
  • Association name
  • Whether the community is a condominium, cooperative or planned community
  • County name
  • Description of the real estate included
  • Maximum number of units that may be created
  • Unit boundaries (may be in the plat or map) with identifying number
  • Description of LCEs
  • Description of property that may become LCEs
  • Description of development rights and property to which the rights apply
  • Time limit for development rights
  • Each unit’s allocated interests
  • Use and occupancy restrictions
  • Restriction on amount owner may receive on sale, condemnation, loss
  • Recording information for recorded easements; easement rights in CE
  • Budget ratification procedure
  • Manner in which notice affecting the owner is given (i.e. certified mail?)
What information must the bylaws in a post-CCIOA community contain?

The bylaws in a post-CCIOA community must contain the following:

  • Number of board members
  • Title of officers
  • Election process of officers by the board
  • Board qualifications, powers and terms
  • Manner of election
  • Manner of removal
  • Manner of filling vacancies
  • Which powers may be delegated
  • Who may prepare, execute, certify and record declaration amendments
  • How to amend
  • If 30 or more units and monetary powers are delegated
    • Delegee maintains fidelity coverage of at least $50,000
    • Delegee keeps funds segregated
    • Delegee presents an annual accounting and financial statement
What are the required public disclosures that must be made within 90 days of transition or change of address or management?
  • Association name
  • Agent’s or management company’s name (and company’s license number)
  • Agent’s or management company’s address and phone number
  • Community name
  • Declaration’s recording date, reception number or book and page
Spoiler title
  • Date the fiscal year starts
  • Current operating budget
  • List of current assessments (regular and special)
  • Annual financial statements for prior fiscal year
  • Most recent financial audit or review results
  • List of insurance policies (company names, policy limits, deductibles, additional named insureds, expiration dates)
  • Bylaws, articles, rules
  • Meeting minutes for prior fiscal year
  • Governance policies
What methods can be used to disseminate public disclosures?

Associations can publish these disclosures via website (with mailed notice of site address); by having a literature table or binder at the principal office; or via US mail.

What are the 9 required responsible governance polices?

Both pre and post-CCIOA communities must have the following written governance policies:

  • Assessment collection
  • Conflict of interest
  • Conduct of meetings
  • Covenant and rule enforcement
  • Records inspection
  • Investment of reserves
  • Adoption and amendment policy
  • Dispute resolution
  • Reserve study and funding
What information is required to be included in the Assessment Collection policy?

All collection policies must contain the following, at a minimum:

  • Due date
  • Delinquency date
  • Late fee and interest rate
  • Return check charge
  • Circumstances for payment plan and minimum terms
  • Prior to turnover to an attorney or collection agency, must provide notice specifying
    • Amount due and accounting of total
    • Whether payment plan is offered and how to enter into one
    • Who to contact to get a copy of the ledger
    • Action that is required within 30 days and the results of failure to cure
  • How payments are applied
  • Legal remedies available to collect the debt
When is the Association not required to make a good faith effort to offer a 6 month payment plan?

If an owner has previously been in a payment plan after January 1, 2014, the association does not need to offer another plan.  Also, if the owner is not an occupant and obtained the property through a foreclosure, the association does not need to offer the plan.

What information should be included within your Conflict of Interest policy?

The Conflict of Interest policy should include information on circumstances in which a conflict exists, the disclosure procedure (how, whom), whether the conflicted director can participate in the meeting, whether the conflicted director can vote, and when the transaction may still be valid even if there was no disclosure.

When can the association make a loan to a director?


What information should be included in your Covenant and Rule Enforcement policy?

The Covenant and Rule Enforcement policy should contain the following, at a minimum:

  • Schedule of fines
  • Fair and impartial fact-finding process by impartial decision maker
Do associations have to provide education to its owners?

Yes.  Associations must provide annual education to owners on general operations and owner rights and responsibilities.  The board may determine the method by which to provide education.

Do associations have to provide education to board members?

No (but it is highly recommended by most professionals who work with associations).

Does an owner have the right to alter his unit (post-CCIOA)?

Yes, depending on restrictions which might be included in the declaration.  Alterations can take place as long as there is no impairment of the structure, systems or support and does not change the appearance.  Owners may connect adjoining units as long as they own both units

What is the approval requirement for amending a declaration?

The approval requirement for pre- and post-CCIOA residential communities is at least an affirmative vote or agreement of more than 50% of the votes, but not more than 67% of the votes.  The approval requirement will usually be included in the declaration.

These requirements do not apply to amending declarant rights, boundaries between owners, court petition amendments or amendments affecting phased communities or Declarant controlled communities.

If first mortgagee approval is required to amend the declaration, and no procedure is provided, how can the association seek this approval?

If there is no procedure in the declaration, the association must send a dated, written notice to first mortgagee holders by certified mail as shown in the Deed of Trust or assignment.  The notice must be published twice with contact information.  If there is no rejection within 60 days the approval is assumed and must be recorded.

How long does someone have to bring an action to challenge the validity of a declaration amendment (post-CCIOA)?

If there are challenges, they must be brought within 1 year of recording.

What is the court petition process for amending the declaration?

This process allows an association to seek court approval for a declaration amendment if an association is unable to obtain the required owner approval (usually because of lack of response) or first mortgagee approval.  The petition is filed in District Court.  The petition must advise the court of the procedure followed, proposed amendment, effect and reason for the amendment, results of the vote and anything else relevant.

Petition exhibits include the current declaration and amendments, proposed amendment, copies of notices about the amendment and other useful documents (i.e. minutes).

Before petitioning the court, the association must send two notices of the proposed amendments, and hold at least one member meeting to discuss the proposed amendment.  It needs to obtain half the required percentage set forth in declaration for approval.

A hearing date will be chosen within 3 days of filing the court petition.  The hearing will be held 45-60 days after filing.  Notice of the hearing must be being sent to owners, mortgagees and declarants.  The notice must include the petition (no exhibits), the hearing date and conditions under which the petition may be granted.

When is a court petition granted?

A court petition may be granted if the association followed the procedure, no more than 33% of the Owners filed a written objection with the court; FHA/VA did not object (if they had approval rights), the amendment does not eliminate declarant rights or the declarant does not object, the amendment does not eliminate mortgagee rights or no more than 33% of mortgagees object, the amendment does not terminate the community or the amendment does not change allocated interests.

Does a declaration amendment need to be recorded at the county clerk and recorder’s office to be effective?


What do pre- and post-CCIOA communities have the power to do, even if not set out in the declaration?

Pre and post-CCIOA communities have the power to:

  • Adopt bylaws
  • Adopt rules
  • Regulate the common elements
  • Charge late fees, attorney fees and other legal costs of collection
  • Levy fines, after notice and opportunity for a hearing
    • Limited authority to require adequate watering if watering restrictions are  in place
  • Adopt budgets
  • Hire and terminate management agents
  • Institute, defend or intervene in litigation on behalf of 2 or more owners
  • Make contracts and incur liability
  • Impose fees for use of common elements
Do post-CCIOA communities have additional powers?

Yes.  Post-CCIOA communities also have the power to:

  • Make additional improvements to common elements
  • Hold and convey right, title or interest to real or personal property
    • Need approval of 67% of votes to convey or mortgage common elements (declaration may contain a higher requirement)
  • Grant an easement, lease or license over common elements
  • Assign its right to future income (assessments) TO THE EXTENT THE DECLARATION EXPRESSLY PROVIDES
Are reserve studies required by CCIOA?

No, but an investment policy and a reserve study and funding policy are required under CCIOA.

What is the standard of care for investing reserves?

The standard of care for investing reserves is for good faith, care of an ordinarily prudent person and in the best interest of the association.

If the declaration does not state maintenance obligations, what does CCIOA require the association to maintain?

The association would maintain common elements, any drainage or public improvements required as a condition of development.  The owner would be responsible for maintaining his unit.

Who has the right to access a unit in order to provide maintenance on the common elements or another unit?

In a post-CCIOA community, each owner and the association have an easement through other units or common elements to perform their respective maintenance responsibilities.

Is an annual meeting required?


How must an association provide notice of a member meeting?

A member meeting notice must be published 10-50 days prior to the meeting via hand delivery or U.S. mail. If there is a feasible physical location to post notice in the community, the notice must be also be posted. If an association is able to provide notice by email it is required to provide email notice to an owner who request it and who provides an email address.

What does an annual meeting notice state?

What does an annual meeting notice state?

When does an association have to call a special member meeting requested by owners?

A special member meeting must be called if owners holding 20% of the votes request one in writing. The bylaws may specify a lower percentage.

Who is entitled to notice of a board meeting?

All board members must be notified of board meetings.  The association is not required to provide notice of board meetings to owners, but it is required to make the agenda available.  This may be provided at the beginning of the meeting if it is not available earlier.

Are board meetings required to be open meetings?

Yes.  Board and committee meetings are required to be open to all members and their representations.  It is encouraged for notice to be given to owners of meeting dates at least 24 hours in advance.

When can a board go into an executive session?

The reasons a board can go into an executive session are as follows:

  • Employment, manager contract, discipline or dismissal
  • Consulting with legal counsel – imminent or current proceedings or privileged information
  • Criminal investigation
  • Matters protected from public disclosure by law
  • Invasion of individual privacy
  • Review of legal counsel’s communication
Can the board adopt a rule in executive session?


How may owners participate at board meetings?

Owners may speak about any issue prior to the board’s vote on that issue.  The board may determine the time for owner participation and may adopt reasonable time restrictions.  If there are opposing views, the board may provide for a reasonable number of speakers from each side.

If the bylaws do not provide a quorum requirement, what does CCIOA state?

For member meetings, associations with 1,000 owners or less must have 20% owners present or via proxy.  For associations over 1,000 owners 10% of owners must be present or via proxy.

For board meetings, the minimum requirement is 50% of votes.

When are secret ballots required?

Secret ballots are required for contested elections and on votes if 20% of the owners present in person or by proxy request a secret ballot.

How are ballots counted?

Ballots are counted by a neutral third party or a committee of volunteers chosen at an open meeting.  Volunteers cannot be not board members or election candidates (in a contested election).  Election results are reported without reference to the voters’ identifying information, such as names or addresses.

When may owners vote by proxy?

Owners are always permitted to vote by proxy.  A proxy must be signed and dated to be valid.  Proxies are valid for 11 months (unless the proxy itself states otherwise).

How is a proxy revoked?

The person revoking the proxy must provide actual notice to the person presiding over the meeting.

In a post-CCIOA community, who casts a vote on behalf of units owned by the association?

No one.  The association does not have a vote for any unit it may own in a post-CCIOA community.

Can a management contract require a penalty for termination?


What are 4 actions that the board cannot take on behalf of the association, pursuant to CCIOA?

The board cannot:

  • Amend declaration
  • Terminate the community
  • Elect the board (can fill vacancies)
  • Determine board qualifications, duties, or terms
What qualifications must a committee chair have?

A committee chair must have the same qualifications as a board member.  Therefore, if board members must be owners, or owners in good standing, the committee chair must also be.  The committee members do not have to have the same qualifications.

How is a budget ratified in a post-CCIOA community?

Within 90 days of the date the board adopts the budget, a summary is mailed to all owners and a meeting is called.  Unless a majority of all owners vetoes the budget, the budget is approved.  The declaration can require a higher percentage of owners to veto the budget.

What is the quorum requirement for a budget ratification meeting?

A budget ratification meeting can be held even if the association’s normal quorum requirement is not met.  If the budget ratification meeting is held in conjunction with another member meeting, such as the annual meeting, and quorum is not present, the association will not be able to hold the other meeting.

If the budget is vetoed, how does the association determine future assessments?

If the budget is vetoed, the last ratified budget remains in effect.  The assessments will remain the same until a new budget is ratified.

When is a financial audit required?

A financial audit is required if the association has annual revenues of $250,000 or more AND 1/3 of the owners request one.

When is financial review required?

A financial review is required if 1/3 of the owners request it.

Are copies of an audit or review available to owners?

Yes, 30 days after it is completed.

What are the disclosure requirements in connection with commencing a construction defect lawsuit?

Before the lawsuit is served (but not necessarily before it is filed), the association must mail notice to owners providing the following information:

  • Commencement/anticipated commencement of action
  • General description of
    • Action and relief
    • Anticipated expenses and fees
Does the association need to disclose attorney client privileged information to the members?


What owner approval is required before an association can convey or mortgage common elements?

In a post-CCIOA community, the association must obtain the approval of 67% of all votes, unless a larger percentage is set forth in the declaration.  The association cannot convey or mortgage a limited common element without the appropriate owner’s consent.

What insurance is a post-CCIOA community required to carry, at a minimum?

The association must carry:

  • Property insurance on the common elements; amount must be not less than the replacement cost (less deductible)
  • In building with horizontal boundaries, insurance must include units, but not the finished interior surfaces of the walls, floors and ceiling of units or betterments and improvements
  • Comprehensive general liability against claims arising out of the ownership, existence, use or management of common elements
    • Amount specified in documents (if any)
    • Covers board, association, managing agent, declarant, owners
    • Covers insured v. insured claims

The owners are to be listed as additional insureds on both the property and CGL policies.  The association’s policy must waive rights of subrogation against owners.

If an owner also carries insurance for which the association is responsible, whose insurance is primary?

The association’s insurance is primary.

How can an association allocate a deductible to an owner?

By adopting written policies that do not contradict the declaration.  In a post-CCIOA community, the association has the authority to assess the deductible to an owner if the owner’s negligence caused the loss.

Who may make a claim against the association’s property damage policy?

The association and the owners.  However, the association may require owners to notify the association prior to making a claim and allow the association a reasonable opportunity to investigate the damage and determine whether to make a claim.  Please note that this is set forth in statutes regulating insurance, not in CCIOA.

When is a post-CCIOA association required to carry fidelity insurance?

If a community has 30 or more units and the funds are controlled or disbursed by an owner or an employee of the association, the association must carry fidelity insurance.

When does an independent contractor managing as association need to obtain fidelity insurance?

An independent contractor managing a community of 30 or more units must obtain fidelity insurance, unless the association names the contractor as an insured employee on its own fidelity insurance.

What is the minimum amount of required fidelity insurance in CCIOA?

The minimum coverage is equal to 2 months of assessments plus reserves.

What is the association’s priority lien (also called a “superlien”)?

It is an amount that is superior to the first mortgage lien.  The superlien is the amount equal to 6 months of assessments, calculated based on the 6 months immediately preceding the date on which the first mortgage holder began its foreclosure action.

What is the statement of account and what are the consequences of failing to provide one when requested?

An owner or owner’s representative may send a written request, via certified mail or personal delivery, to the association’s registered agent for a statement of all unpaid assessments against the unit.  If the association does not provide the statement within 14 days of the request, the association loses its right to assert its lien for assessments.

What are the two prerequisites to filing an action to foreclosure the association’s assessment lien?

The balance owed must equal or exceed 6 months of common expenses and the board must formally resolve and vote to authorize the action.

When can the association require an owner to provide a purpose for requesting to review or copy records?

The association cannot require an owner to state the purpose for requesting records.  However, the association can limit or restrict an owner’s use of a membership list for commercial purposes.

What records are the association required to retain and disclose?

The association is required to retain and disclose the following:

  • Detailed records of receipts and expenditures affecting the association’s operations
  • Construction defect claims and settlement amounts
  • Minutes of all meetings (board, member and committee)
  • Records of actions taken outside of a meeting
  • Written communications, and votes cast, by Board related to action taken outside a meeting
  • Membership list, including the owners name, physical mailing address, and number of votes
  • Governing documents, including governance policies
  • Financial statements showing assets and liabilities (3 years)
  • Tax returns (7 years)
  • The names, email addresses, and physical mailing addresses of board members and officers
  • Corporate annual report
  • Financial records to permit preparation of a statement of unpaid assessments
  • Reserve study (if any)
  • Current written contracts
  • Contracts for work in the past 2 years
  • Record of action taken to approve or deny ACC requests
  • Ballots, proxies and other voting-related records (1 year after the vote)
  • Resolutions regarding member obligations and qualifications
  • General owner correspondence (3 years)
Which records may the association withhold from inspection?

The association may withhold from inspection the following:

  • Architectural drawings and plans
  • Contracts and bids under negotiation
  • Attorney-client privileged material
  • Disclosure of information in violation of law
  • Executive session records
  • Individual unit records (except to the owner)
Which records is the association prohibited from disclosing to an owner?

The following personal identification information regarding owners:

  • Bank accounts
  • Phone numbers
  • Email addresses
  • Driver’s license numbers
  • Social Security numbers

Individual personnel, salary and staff/employee medical records

Can an association still publish an owners’ directory with phone numbers and email addresses?

Yes, if the owner signs a written authorization for that information to be included

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