New Policy Requirement for Colorado Associations?
We already told you that the SB 100 clean-up bill has been introduced. If you have not had the opportunity to review the bill yourself, you may not know that additional changes are proposed to 38-33.3-124, regarding alternative dispute resolution.
SB 05-100 introduced the following language to the Colorado Common Interest Ownership Act (CCIOA) regarding alternative dispute resolution:
The general assembly finds and declares that the cost, complexity, and delay inherent in court proceedings make litigation a particularly inefficient means of resolving neighborhood disputes. Therefore, common interest communities are encouraged to adopt protocols that make use of mediation or arbitration as alternatives to, or preconditions upon, the filing of a complaint between a unit owner and association in situations that do not involve an imminent threat to the peace, health, or safety of the community.
Now, a provision of SB 06-089 proposes that each association also be required to formulate a written policy setting forth its procedure for addressing disputes between the association and owners.
Let us know what you think about this provision of the new bill and about how alternative dispute resolution has worked (or not worked) for your association.