HOA-Related Bill Introduced in Colorado House of Representatives

House Bill 1110 (HB 1110) was introduced today in the Colorado House of Representatives. Sponsored by Representative Cindy Acree, HB 1110 would amend the Colorado Revised Nonprofit Corporation Act (“Nonprofit Act”) to extend some provisions of the Colorado Common Interest Ownership Act (“CCIOA”) and other requirements to “Residential Nonprofit Corporations” which are defined in the legislation as “a nonprofit corporation that has residential members.” Based upon current provisions of the legislation, it is clear that most homeowner associations in Colorado would be required to comply with the requirements of the bill.  In addition, members of associations would fall within the definition of "residential member."

HB 1110 would require Residential Nonprofit Corporations to:

●  Refund “entrance fees” to residential members under specified circumstances;

● Hold board and committee meetings open to residential members;

● Make agendas for meetings of the board reasonably available for examination by residential members or their representatives;

● Permit residential members to speak regarding an issue before it is voted upon by the board. Boards are permitted to reasonably regulate this process.

Under the legislation, boards are permitted to convene in executive session. The bill enumerates the items that may be discussed in executive session, the procedures for convening in executive session and how an executive session must be addressed in meeting minutes. 

The bill also provides that Residential Nonprofit Corporations are encouraged to provide notices of meetings and agendas in electronic form. If such electronic means exist, “the corporation shall provide notice of all regular and special meetings of residential members by electronic mail to all residential members who so request and who furnish the corporation with their electronic email addresses. Electronic notice of a special meeting must be given as soon as possible but at least twenty-four hours before the meeting.”

While it seems clear that HB 1110 was not intended to extend to homeowner associations, the current language of the bill captures associations.  CAI’s Colorado Legislative Action Committee will be working with Representative Acree to address concerns with the legislation. 

We will provide you with updates on HB 1110 as it proceeds through the legislative process.