Exclusivity contracts are often used by providers of video programming distributors (think cable providers) to obtain the exclusive right of access or the exclusive right to provide video service in a community. On November 13, 2007, the FCC entered its order banning exclusivity contracts between cable operators (and other multi-channel video programming distributors) and multiple dwelling unit developments. The definition of multiple dwelling units developments includes condominiums, cooperatives, and communities of single family homes. The final order from the FCC has still not been published. However, in the mean time, you can view a summary of the FCC order here, and comments, prepared by the Community Associations Institute. This action by the FCC is consistent with its belief that communication providers (internet, wireless and cable) should be subject to the greatest possible competition in providing their services, and that consumers generally benefit from that competition.Continue Reading FCC Bans on Exclusivity Contracts
2007
Fair Housing Revisited
We’ve written before about how the Fair Housing Act applies to common interest communities. Unfortunately, there are some (maybe many) homeowners associations and condominium associations that still don’t understand the importance of this federal law and its state counterpart, the Colorado Fair Housing Act, or if they understand, they don’t believe it applies to them. Here is a recent story of a condominium association in Hawaii that found out otherwise. Continue Reading Fair Housing Revisited
Community Association Legal Audit (Part 1 of 2)
Community association board members fill tough roles that require a great deal of attention to association business. We understand that, as board member volunteers, you need guidance from professionals to facilitate informed decision-making, allowing you to uphold your fiduciary duties to the association that you serve. To assist you in evaluating the legal priorities for your community, we have created this Legal Audit checklist.
Place a check mark in the box beside each statement that applies to your community association.
My community association has . . .
? adopted the seven mandatory Senate Bill 05-100 policies.
Senate Bill 05-100 requires all associations to adopt seven different responsible governance policies concerning (1) the adoption and amendment of policies, (2) board member conflicting interest transactions, (3) covenant enforcement and fines, (4) collection of delinquent assessments, (5) conduct of meetings, (6) inspection and copying of records and (7) reserve fund investments.
? adopted the Senate Bill 06-89 dispute resolution policy.
Senate Bill 06-89 requires all associations to adopt a policy concerning disputes between owners and the association.
? updated Senate Bill 05-100 policies to conform to Senate Bill 06-89 requirements.
Senate Bill 06-89 modified some of the terms of Senate Bill 05-100, creating recommended changes to the responsible governance policies.
Continue Reading Community Association Legal Audit (Part 1 of 2)
What Would John Wayne Do
In reviewing the law regarding construction of restrictive covenants, I ran across a case I read a couple of years ago. As I was leisurely re-reading this case I was struck by the appellate court’s interpretation of the covenants dealing with the heart of the lawsuit. No, not the validity of the developer unilaterally modifying the restrictive covenants after the sale of lots or tracts. It was how the court concluded that sheep could be maintained on the property when under the original 1984 covenants they were specifically prohibited.
Notice of Special Meeting – What Goes Inside?
Sometimes unexpected things happen that require the special attention and input of the members of your Association. If a matter pops up that can’t wait until the next annual meeting, a special meeting is in order. When this happens, the question we often are asked by Boards and managers is: What type of notice must we give the members before a special meeting?Continue Reading Notice of Special Meeting – What Goes Inside?
Maintaining the Enforceability of Fines in Your Community
The levying of fines against rule-breakers in the community is an effective tactic used by homeowner associations to curb misbehavior and to maintain a harmonious appearance within the community. In order to enforce and collect these fines, however, it is imperative that associations follow proper fining procedures as set out in the Colorado Common Interest Ownership Act (CCIOA), as well as any additional requirements that may be set forth in the Association’s governing documents or policies.Continue Reading Maintaining the Enforceability of Fines in Your Community
Colorado Foreclosure Law and Your Association’s Superlien
As part of the changes to Colorado’s foreclosure law that become effective January 1, 2008, C.R.S. §38-38-103(1)(c) will read:
If a recorded instrument does not specify the address of the party purporting to have an interest in the property under such recorded instrument, the party shall not be entitled to notice and any interest in the property under such instrument shall be extinguished upon the execution and delivery of a deed pursuant to section 38-38-501.
Meaning, if your association’s current contact information is not listed in your Declaration, a lender foreclosure could extinguish your association’s super priority lien.Continue Reading Colorado Foreclosure Law and Your Association’s Superlien
Seven Steps For Insurance Protection
A CHECKLIST FOR BOARDS TO FOLLOW
1. Check your governing documents: what is required for the Association under your Declaration, Articles of Incorporation and Bylaws?
A. Also, what optional coverage are you authorized (by the documents) to consider?
B. What insurance coverage must the Owner have?
When is One Story One Story?
When the documents say how tall it is. And when it does not say how tall one story is, there is a very good chance that language in the governing document limiting a structure to one story will be unenforceable as a restrictive covenant.
In a recent Colorado Court of Appeals decision, Allen v Reed, 155 P.3rd 443 (Colo. App. 2006) the appellate court reversed the trial court’s granting a permanent injunction ordering the defendants to remove their A-frame addition to their home, which contained a bedroom loft suite. The lawsuit did not involve the Association, but was an action between two homeowners regarding an interpretation of the Association’s restrictions limiting structures to one story. It was unclear whether the Association Board had the authority to enforce and there was no existing architectural control committee to enforce the restriction.Continue Reading When is One Story One Story?
A Constitutional Right to Free Speech in Your Association? Not Yet
Those of us that work in the community association industry have been closely following the path of the New Jersey case of Committee for a Better Twin Rivers v. Twin Rivers Homeowners Association. On July 26, 2007, the New Jersey Supreme Court announced its decision, affirming the trial court and reversing the court of appeals, in determining that, under the New Jersey Constitution, the homeowners association’s rules restricting signage did not violate the right of free speech, that the constitutional right of free speech is not absolute, and citizens may waive or otherwise curtail their rights. A little background is helpful to understanding this case, and what its implications are to those of us in Colorado.Continue Reading A Constitutional Right to Free Speech in Your Association? Not Yet