Planning Ahead for Annual Disclosures

As we enter the homestretch for 2012, it doesn’t hurt for managers and boards to put on their radar screens the “annual disclosures” homeowners’ associations (“HOAs”) are required to make pursuant to the Colorado Common Interest Ownership Act (“CCIOA”). C.R.S. 38-33.3-209.4(2) provides that within 90 days of the end of each fiscal year, HOAs must make the following information readily available at no cost to unit owners:

● The date on which the fiscal year commences;

● The HOA’s operating budget for the current fiscal year;

● A list, by unit type, of the HOA’s current assessments – including regular and special assessments;

 

● The annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the current annual disclosure;

 

● The results of the HOA’s most recent financial audit or review;

 

● A list of all association insurance policies which must include company names, policy limits, policy deductibles, additional named insureds, and expiration dates of policies listed;

 

● The HOA’s bylaws, articles of incorporation and rules and regulations;

 

● The minutes for board and member meetings for the fiscal year immediately preceding the current annual disclosure; and

 

● The HOA’s Responsible Governance Policies - which are also commonly referred to as “SB 100 Policies.”

 

Disclosure of these items may be made by: (1) posting the documents on the HOA’s webpage with an accompanying notice of the web address being sent to the unit owners by first class mail or email; (2) the maintenance of a literature table or binder at the HOA’s principal place of business; or (3) by mail or personal delivery. The costs associated with this annual disclosure must be accounted for as a common expense liability.