An option for proposed Declaration Amendments

Special, Restricted Ability of Courts allowed for under CCIOA

A part of the Colorado Common Interest Ownership Act (CCIOA) allows Colorado District Courts a special, restricted ability to amend Declarations by Court order.

This Court petition process is available to common interest communities subject to C.R.S. Section 38-33.3-217(7). This unique procedure became law May 19, 1999.

When to consider the Court petition process?

Consider the Court petition process to approve a proposed Declaration amendment if:

If either or both owner and lender approvals are required and have not been obtained then the Court petition process is an option for the Association.

Other options also exist, so check with the attorney for the Association.

How does an HOA qualify to seek Court approval of a proposed Declaration Amendment?

The statute allows an Association to apply to a District Court to amend its Declaration, by Court order, after it has taken the following steps:

Lender Approval of the Proposed Amendment is not a prerequisite.

Lender approval of a proposed Declaration amendment is not required to begin the petition process to the Court, even if lender approval is required by the existing Declaration.

Action of the Board, after prerequisites are met.

With the criteria listed above met, the Association, acting through its Board of Directors, may file a petition with the Court. The Association then requests that the Court approve the proposed Declaration amendment.

Due Process, After the Petition is filed.

After the petition is filed, the Court sets a hearing date on the petition.

After the hearing is set the Association sends written notice of the petition and of the hearing to all owners. This notice is also to be send to the Developer/Builder (Declarant). Notice of the hearing is also to be sent to any lender who is entitled to notice of a Declaration amendment under the Declaration or under underwriting guidelines or requirements of the lender or FNMA, FHLMC, FHA, VA or GNMA.

The Court Order approving the Amendment.

The Court must grant the petition and approve the proposed Declaration amendment if the Association has complied with statutory requirements and objections allowed by statute are not filed with the Court.

The Court is not allowed to approve the proposed Declaration amendment if:

Questions on this statute or the process to be followed?

Contact an experienced and qualified HOA attorney.