Governance Policies Required Under State Statutes
Most Colorado HOAs or owner associations are required to have 9 written governance policies and procedures on the following topics:
- Conflicts of Interest
- Conduct of Meetings
- Enforcement of Covenants and Rules
- Records Inspection and Copying
- Investment of Reserves
- Adoption of Policies
- Disputes between the Association and Unit Owners
- Reserve Studies/Reserve Funding
How to comply?
Adopt and maintain the required policies. Update, revise and simplify these policies as needed. In 2013, the state legislature approved a new law about contents that must be in a collection policy. In 2012, the legislature approved a new law on HOA records. With those changes, owner associations should update their governance policy on collections and their governance policy on HOA records inspection and copying.
Why has the state required governance policies of most HOAs?
The required polices are intended to result in better governance of HOAs, with transparency of the HOA’s policies to the members.
Required Policies and Procedures of Owner Associations – Application:
- The 9 governance policies are required by C.R.S. §38-33.3-209.5, which applies to all common interest communities and owner associations subject to CCIOA (the Colorado Common Interest Ownership Act), including timeshare owner associations and club associations
- The policies became required (or required amending) at different times as follows: January 1, 2006; January 1, 2007; either August 5, 2009 or July 1, 2010; January 1, 2013; and the collection policy contents as of January 1, 2014.
Enforcement of the Required Governance Policies
The bills that established requirements for these 9 policies are amendments and revisions to CCIOA. Enforcement of CCIOA provisions is similar to enforcement of declarations, which means that owners and HOAs have enforcement rights. An owner or HOA that successfully pursues enforcement through the courts may claim attorney fees under CCIOA. A claim for attorney fees may also be available under the governing documents. Although there is currently no express enforcement authority granted to the HOA Information Office and HOA Information Officer, under recently adopted Colorado law, the HOA Information Officer is authorized to request certain records from associations as the HOA Information Officer determines are necessary to carry out the HOA's Information Officer’s duties.