HOA Conflict of Interest Bill (HB 1124) Clears the Colorado House of Representatives
The Colorado House of Representatives has passed House Bill 11-1124 (“HB 1124”) on third reading, which means the bill has cleared the full House and will now be referred to the Senate for action. The Senate sponsor of HB 1124 is Senator Morgan Carroll. Once the bill has been formally referred to the Senate, it will be assigned to a committee and scheduled for a hearing.
The version of HB 1124 approved by the House addresses the required content homeowner associations (“HOAs”) must include in their SB 100 policy relating to conflicts of interest of board members. In particular, the bill currently requires the SB 100 policy to include:
●A definition or description of when a conflict of interest exists;
●The procedures a board of directors of an HOA must follow when a conflict of interest exists, including: (1) how the conflict of interest by a board member must be disclosed; (2) to whom the conflict of interest must be disclosed; and (3) whether the board member with the conflict must recuse him or herself from discussing or voting on the issue.
The House approved version of HB 1124 also requires an individual running for a seat on the board of a special district to disclose whether that individual serves on the board of an HOA which is located within the special district.
CAI’s Colorado Legislative Action Committee (“CLAC”) worked closely with the House Sponsor of the HB 1124, Representative Angela Williams, and other stakeholders to rewrite the original version of the bill. CLAC supports HB 1124 in its current version.
We will provide you with updates on HB 1124 as it considered by the Senate.