January 2012

A manager recently told me about an association that lost some money. Specifically, one of the association’s long-term Certificates of Deposit was turned over to the State of Colorado. In this situation, the bank had apparently sent correspondence to the association’s former management company and then turned over the account to the State when no response was received within 30 days. The property manager was totally baffled and not sure how to get the money.

The Great Colorado Payback website shows that the State is holding funds for this particular association, and the manager will need to go through a claims process to get the money. Unfortunately, the association won’t get interest that accrued during the time the State has held the funds. I don’t have all the details – and haven’t heard yet if there’s a “happy ending” – but other associations may benefit from knowing that their accounts can get transferred to the State.Continue Reading Where, oh, where has my HOA’s CD gone?

Have you heard the story of the community association members who knew one of their board candidates was convicted of a felony related to fraud or embezzlement yet elected that person anyway? Did you hear the part about how that board member later ran off with a substantial amount of the association’s funds? Maybe it’s just an urban legend among community association professionals. Or maybe it’s true. Either way, how does your association help to ensure the election of board members who will represent the association’s best interests?

As community association lawyers, we often get questions about how to place limitations on who can serve on an association’s board of directors. Sometimes boards do not want to allow owners with delinquent accounts to serve on the board. Other times, board members know that a person with a criminal record intends to run for the board. In other situations, current board members want to prevent people with different viewpoints from getting elected to the board.Continue Reading Don’t Elect the Convicted Felon

While a ledger may seem like a simple accounting device, it is actually an extremely helpful tool in assessment collection. A ledger is not just a document full of numbers. Ledgers – well, good ledgers – allow an Association, homeowner, Association’s attorney and even a court to see the timeline of events that have happened since the homeowner took title to the property – you could even say it tells a story. They pinpoint the date the account became delinquent and how it has progressed since that time. They can also be a key piece of evidence at trial. A good ledger can be the difference between being able to collect a delinquent balance and having to make the difficult decision to write off amounts that would otherwise be considered due and owing.Continue Reading Ledgers of the Fall

In response to a Colorado Open Records Act (“CORA”) request, I was provided with the 2011 Annual Report of the HOA Information and Resource Center. This is the long-awaited report that focuses on the activities of the HOA Information and Resource Center (the “Office”) including a synopsis of inquiries and complaints. Below I have outlined just a few interesting points made in the Annual Report. However, to be clear, these are snippets of information and I highly recommend that you review the entire Report for context and a full understanding of the data and related issues. 

Here are just a few of the interesting points made in the Annual Report: Continue Reading 2011 Annual Report Of The HOA Information And Resource Center

In an election year that could easily be plagued by partisan politics and the introduction of divisive legislation, I’m taking my hat off to Representative Angela Williams for working with school children in her district by introducing House Bill 11-1147 to make the Western Tiger Salamander the state amphibian of Colorado. Not only will her young constituents have an up close and personal view of how a bill becomes law, they will also learn firsthand the importance of civic activism.

 

Continue Reading Three Cheers for the Western Tiger Salamander!

On Sunday, the Denver Post ran a story addressing the impact of FHA certification of condominium projects on the sale of units in those projects. The story, entitled Condos’ lapsed approval may slam door on future sales, touched on just a few of the challenges condo associations are facing in obtaining certification – including assessment delinquencies and the number of owner-occupied units.   

Following the meltdown of the real estate market, HUD undertook an overhaul of the requirements that condominium associations must comply with in order for their condo projects to become FHA certified. This certification makes it possible for some purchasers of units in those associations to qualify for FHA-backed loans. Continue Reading Denver Post Covers Impact of FHA Certification on Condo Market

As Chair of CAI’s Colorado Legislative Action Committee ("CLAC"), I write a monthly column for  Common Interests magazine which is published by the Rocky Mountain Chapter of CAI.  In Capitol Chronicles this month, I addressed:  (1) the background related to the Sunrise Review Application submitted to the Colorado Department of Regulatory Agencies ("DORA") to investigate the necessity of…

Nearly every time someone asks us a question regarding their association’s obligations, their individual duties, the proper method of taking action, or virtually anything related to association activity and governance, we begin our answer with, "Well, it all depends on your documents."

Of course, certain things are dictated by law, but more often than not, your documents spell out the detailed issues that aren’t specifically addressed by statute. Your documents – your Declaration, Bylaws, Articles of Incorporation, Rules, and Policies – dictate how your association must respond to various situations. If you want to hold a special meeting – look to your Bylaws. If you want to know how many directors you need to have – look to your Articles of Incorporation and Bylaws. If you want to know whether you are responsible for maintenance – look to your Declaration.

Unfortunately, some documents can be awful.Continue Reading Are Your Documents Awful?

Meet the CFPB

In 2010, Congress created the Consumer Financial Protection Bureau (CFPB) to serve as the nation’s “cop on the beat” to protect consumers from harmful financial products. Officially opened for business on July 22, 2011, the CFPB is now responsible for enforcing most federal financial consumer protection laws.

CAI’s members have a keen interest in the development of CFPB’s rules and regulations that could affect community associations. As a new federal agency, the CFPB is still working to define its approach to protecting consumers from abusive financial products and helping to ensure consumers have the right information to choose the financial products and services that will best meet their needs. While the CFPB’s authority extends from checking accounts to credit cards to payday loans, it also has significant authority over federal housing policy, mortgage lending standards and the home buying process.Continue Reading CAI National Introduces Us To the CFPB

As I have been reviewing legislation that was introduced during the first week of the legislative session here in Colorado, House Bill 12-1057 (“HB 1057”) caught my attention. The bill, as introduced by Representative Claire Levy, seems to be aimed at ensuring that folks carry adequate homeowner’s insurance. Continue Reading Homeowner’s Insurance Bill Introduced in the Colorado House