Bill Introduced Granting Limited Immunity for Unauthorized Practice of Community Association Management

On January 20th, Representative Kevin Van Winkle (R) introduced House Bill 17-1112 (HB 1112) which would provide immunity from penalties for individuals who engage in the unauthorized practice of a profession regulated by the Department of Regulatory Agencies (DORA), like a realtor engaging in the unauthorized practice of community association management, under the following circumstances:
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Bill Introduced to Fund Attainable Housing

As I mentioned in my blog entry kicking off the 2017 legislative session in Colorado, 8 to 10 bills relating to construction defects and the construction of affordable housing are expected to be introduced this session.  In my January 12th blog entry, I reported on the bipartisan introduction of SB 45 which is intended to reduce the cost of construction insurance for builders.
 
Yesterday, in an effort to provide financial assistance to those individuals who are seeking to purchase, finance or rehabilitate attainable housing, Senator Rachel Zenzinger (D) introduced Senate Bill 17-085 ("SB 85").  The bill is also intended to provide financial assistance to nonprofit entities and political subdivisions that make loans to folks in relation to attainable housing.  To secure these funds, SB 85 would increase the per document surcharge that is assessed by clerk and recorders on each document they receive for recording from $1 to $5.  The additional $4 added to each document surcharge on a yearly basis would be transmitted to the State Treasurer and deposited into the "Statewide Attainable Housing Investment Fund."
 
Will the fiscal note on SB 85 be a non-starter for the Republican controlled Senate?  If SB 45 makes it through the legislative process and is signed into law, will it assist in a meaningful way the citizens of Colorado in purchasing attainable housing?  It SB 85 dead on arrival in the Senate?  Only time will tell! 
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Residential Storage Condominium Unit Bill Back for Another Round

Senator Bob Gardner (R) has introduced Senate Bill 17-078 ("SB 78") to address the taxation of "residential storage condominium units."  If my memory serves me well, this is the third time this bill has been introduced in the Colorado General Assembly.  Will the third time be a charm? 
 
This bill is pretty simple and isn't something that condominium associations need to concern themselves with.  For folks who own storage condominium units and submit an affidavit to their tax assessor's office that the unit is being used "to store items from or related to the owner's residence," then under SB 78 the storage unit will be taxed as residential real property with a rate of around 7.96%, as opposed to being taxed as nonresidential property at a rate of about 29%.  SB 78 does not impose upon storage condominium associations any obligation to participate in the process to determine whether any particular storage unit should be taxed as residential or nonresidential real property.
 
Stay tuned to this blog for updates on SB 78 as it proceeds through the legislative process. 
 
 
 
 
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Construction Defect Insurance Bill Introduced in Colorado

On the first day of the 2017 legislative session in Colorado, President of the Senate Grantham (R) and Speaker of the House Duran (D) introduced Senate Bill 17-045 to require courts to allocate defense costs in construction defect claims when more than one insurer has a duty to defend.  Senator Angela Williams (D,) a longtime advocate for homeowners living in HOAs, is the co-prime sponsor with the President of the Senate on this bill.  The bipartisan nature of this bill is truly impressive. 
 
This bill is intended to have courts fairly and equitably allocate the costs of defending construction defect claims between insurance companies with a duty to defend.  It also permits insurance companies to  bring claims against builders (referred to as "insureds" or "additional insureds" in SB 45) who did not procure liability insurance during the period of time the alleged claims for defects arose.
 
This bill is intended to reduce the costs of construction insurance.  Builders have long claimed that the costs of procuring construction insurance makes it cost prohibitive to build condominiums.  It will be interesting to see how the insurance industry responds to SB 45. 
 
As always, stay tuned to this blog for updates on this important bill and other bills impacting HOAs in Colorado!
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2017 Colorado Legislative Session Promises Focus on Construction Defects

The 2017 legislative session opens today in Colorado! For those of you who are political junkies, following the recent elections, here is what you need to know about the makeup of the Colorado House and Senate:

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The Importance of Monitoring Foreclosure Sales

As many of you know, the association is entitled to collect a super lien payment from a foreclosing lender when a property enters into public trustee foreclosure. The super lien amount consists of up to six months of regular assessment charges that came due prior to the filing of the foreclosure. This is a monetary threshold rather than a requirement that there be six months of unpaid assessments due.  For example, if an association had monthly dues of $100.00, a super lien could be claimed for $600.00 so long as the account ledger showed this balance as due. The balance could be comprised of any combination of assessments, late charges, interest, legal fees or other charges.

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Happy Thanksgiving from all of us at Winzenburg, Leff, Purvis & Payne, LLP.

Be Thankful

Be thankful that you don't already have everything you desire.  If you did, what would there be to look forward to?

Be thankful when you don't know something, for it gives you the opportunity to learn.

Be thankful for the difficult times. During those times, you grow.

Be thankful for your limitations, because they give you opportunities for improvement.

Be thankful for each new challenge, because it will build your strength and character.

Be thankful for your mistakes. They will teach you valuable lessons.

Be thankful when you're tired and weary, because it means you've made a difference.

It's easy to be thankful for the good things. A life of rich fulfillment comes to those who are also thankful for the setbacks.

Gratitude can turn a negative into a positive. Find a way to be thankful for your troubles, and they can become your blessings.

-Author Unknown

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2017 Assessments

Is your association increasing, or even decreasing, its annual assessment fees for 2017? If so, it is important that the association follow its governing documents when providing notice of the change to all owners.   In addition to providing owners with proper notice of any change, the association should also notify its attorney. This will help to ensure that any accounts and/or payment plans that are with the attorney for collection are properly noted, and any increase is accurately accounted for and collected.  

In addition to payment plans that may be affected by the increase of assessment fees, there are also notification requirements and deadlines the association must comply with for certain owners who have filed for bankruptcy.  Advising the association’s attorney of any change will allow the attorney to take the proper measures to ensure that the association retains the right to collect the new assessment fee.

If you haven’t already notified your attorney that your assessment fees have changed, or will change, for the New Year, pick up the phone or send an email to your attorney – I’m sure he or she would love to hear from you!

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New Addition to WLPP

Winzenburg, Leff, Purvis & Payne is pleased to announce that Brianna Schaefer has joined our firm. Brianna is an accomplished attorney specializing in the practice of community association law and is an outstanding addition to our law practice. Brianna has been practicing in HOA law since 2004 and has primarily focused her practice in the areas of collections and foreclosure. She enjoys finding creative ways to assist communities to thrive financially and encourages open communication between board members and owners. She is also an enthusiastic educator and enjoys developing and teaching classes on association related topics.

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FHA Condominium Owner-Occupancy Requirements

As we’ve discussed earlier this year, Congress recently passed the Housing Opportunity Through Modernization Act (HOTMA), which was signed into law by President Obama on July 29, 2016. While the act addresses many aspects of housing and federal housing assistance, of particular interest to us and some of our clients is one part of the act that addresses FHA Mortgage Insurance for Condominiums. The act requires that the Secretary of HUD streamline the project certification requirements that are applicable to insurance for condominium mortgages to that recertification is substantially less burdensome than certifications. In addition, the act requires that the Secretary of HUD also consider and modify other factors and practices in FHA project approvals for condominiums, including the amount of commercial space in a mixed-use project, transfer fees, and owner-occupancy requirements.

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