SB 06-089: Colorado Legislation Proposes New Disclosure under C.R.S. 38-33.3-209.4
We already reported that your Colorado association may be responsible for another responsible governance policy under the proposed revisions to SB 100, but did you know SB 06-089 also proposes an additional disclosure under C.R.S. 38-33.3-209.4?
C.R.S. 38-33.3-209.4(2) currently provides:
(2) Within ninety days after assuming control from the declarant pursuant to section 38-33.3-303(5), and within ninety days after the end of each fiscal year thereafter, the association shall make the following information available to unit owners upon reasonable notice in accordance with subsection (3) of this section:
(a) The date on which its fiscal year commences;
(b) Its operating budget for the current fiscal year;
(c) A list, by unit type, of the association's current assessments, including both regular and special assessments;
(d) Its annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the current annual disclosure;
(e) The results of any financial audit or review for the fiscal year immediately preceding the current annual disclosure;
(f) A list of all association insurance policies, including, but not limited to, property, general liability, association director and officer professional liability, and fidelity policies. Such list shall include the company names, policy limits, policy deductibles, additional named insureds, and expiration dates of the policies listed.
(g) All the association's bylaws, articles, and rules and regulations;
(h) The minutes of the executive board and member meetings for the fiscal year immediately preceding the current annual disclosure; and
(i) The association's responsible governance policies adopted under section 38-33.3-209.5.
SB 06-089 proposes a clean-up to subsection (e) (changed language would read "The results of its most recent available financial audit or review;"), and it also proposes a new subsection (j):
A list of the association's insurance and maintenance responsibilities related to the common elements, limited common elements, units, owners' property, and owners' personal liability within units. Such list shall state that unit owners are responsible for determining what additional individual insurance coverage must be carried to cover insurance responsibilities not covered by the association's insurance policies.
Associations frequently run into questions from owners about insurance and maintenance responsibilities. What are your association's experiences with insurance and maintenance responsibility inquiries? Do you believe a pre-prepared list of those responsibilities would curb the inquiries and thereby reduce the time the association's volunteer board and the association's legal counsel spend on these issues? Have you already prepared, or had your legal counsel prepare, a list like this? Let us know what you think.