Attempts to Unilaterally Modify Contracts by Service Providers

Recently our firm has seen an increase in various service providers attempting to introduce new fees in the performance of their contracts with community associations.  These fees are typically introduced on an invoice, and accompanied with a short explanation that they are associated with some cost incurred by the service provider.  When assessed on a per-owner basis these fees may seem small or nominal in amount.  However, when aggregated across the community and across multiple years, these fees can add up to a mid-contract price increase of tens of thousands of dollars for a community association.  Owners and board members should be aware that the introduction of these fees is an attempt to unilaterally modify a contract and there may be a sound legal basis to reject such a modification.

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NOTICE to our clients and managers

NOTICE to our clients and managers alike - effective September 1, 2018, Colorado made changes to the law which affects how Associations and Management Companies store and handle the personal identifying information of its members.  The law impacts all communities whether self-managed or professionally managed.  Associations should contact their attorney to discuss and adopt the necessary policies.

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HOA Subject to Property Tax?

Normally, property taxes on common areas are paid by the membership through taxes on their own property.  For the members of an exclusive San Francisco community, however, an unpaid tax bill lead to the sale of the private street that fronts their homes.  How did this happen?  Bad record-keeping or the failure to record the proper deeds at the time of transition?  It’s hard to say.  The association claims that the tax bill was sent to the wrong accountant.  Now, a $994 property tax bill is likely to cost these owners hundreds of thousands to correct the mistake.

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How do you Mitigate Wildfire? ...Goats.

Yes, goats…300 goats!  A new… and unique…method to help reduce the spread of wildfire has gained our attention.  Recently, a Castle Pines homeowners association enlisted the services of a herd of 300 goats to help mitigate the spread of wildfire in its community.  The goats eat and remove about one acre of tall grass and brush from the community per day and it appears residents are so far happy with the results. According to an article published by the Denver Channel 7 News, this creative approach to fire mitigation is part of a local high school’s scientific study which strives to find ways to protect communities from fire while considering the long term impacts on the ecosystem. While the study is just getting underway, it is gaining popularity and the herd of goats is already booked to help out other neighboring HOAs.

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Supreme Court Affirms Declarant Consent Required for Removal of Arbitration Provision for Construction Defect Claims

On June 5, 2017, the Colorado Supreme Court issued its ruling in Vallagio at Inverness Residential Condominium Ass’n, Inc. v. Metropolitan Homes, Inc. et al. (Supreme Court Case No. 15SC508).  The Supreme Court affirmed the court of appeals and ruled:

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Denver, CO 80202
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Colorado Springs, CO 80903
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