Consensus on Construction Defect Legislation - FINALLY

Gov

Governor Hickenlooper, state legislators and mayors had a press conference at the Capital on April 19, 2017, and announced that consensus has been achieved on a construction defect bill, this after years of bills related to construction defects were introduced and dying due to lack of consensus.  House Bill 1279 has not yet passed the House and will need to be approved by the Senate, but this announcement is the closest a construction defect bill has come to passage.  

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New Harassment Rules Added to Fair Housing Act

HUD recently issued its final rules regarding quid pro quo (“this for that”) harassment and hostile environment harassment under the Fair Housing Act.  The Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, disability and familial status.  Although community associations do not typically consider themselves to be “housing providers,” the Fair Housing Act applies to associations and plays a role in how the community relates to its residents.

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FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States

Recently proposed changes in FHA lending programs and guidelines could have drastic effects for 22 states (including Colorado) and the District of Columbia. The proposed reforms would restrict owners’ eligibility for Home Equity Conversion Mortgages (i.e., reverse mortgages) in states where community association liens are provided “super lien” status. If enacted, the revised rule states that “as a condition for a HECM to be eligible for loan assignment, that the HECM mortgage be in a lien status prior to homeowners association and condo association liens.” The result would be to eliminate associations’ current priority lien status over mortgages and deeds of trust and would effectively eliminate homeowners’ ability to obtain a reverse mortgage in super lien states. The proposed changes appear to be directly targeted at states with priority lien statutes. State super lien statutes provide important protections and benefits to owners, associations, and lenders. The propose rule changes are currently available for public comment.

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Compromise Reached on Federal Amateur Radio Bill H.R. 1301

Radio Tower

In the waning days of May, CAI and HAM Radio Lobbyists worked with together with Federal Legislators to reach a compromise on H.R. 1301 concerning outdoor amateur radio antennas and services in residential communities. The revised bill requires the FCC to enact rules prohibiting private land use restrictions, including restrictive covenants found in almost every declaration, banning installation of outdoor antennas on property exclusively owned by an amateur radio licensee or which otherwise precludes amateur radio service communications. The FCC rules will mandate that the radio licensee notify and seek prior approval from their Association before installation of any outdoor antenna. Additionally, Associations will still be allowed to prohibit antenna location on common areas and enact reasonable rules concerning the height, location, size, and aesthetic impact of, and installation requirements for the outdoor antenna and support structures.

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CD Reform is Dead Again, So What’s Next?

After negotiations collapsed last week over proposed statewide construction defect legislation, the future of construction defect reform remains to be seen. What is clearly evident, however, is that many cities and local municipalities are not afraid to take matters into their own hands. But how effective are local ordinances?

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