House Bill 12-1237 passed out of the House Local Government Committee on a 9-0 vote this afternoon. The Committee adopted an amendment to the original bill language that does the following:
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On January 16th, I blogged on House Bill 1057 which would have required the Insurance Commissioner to adopt the following rules relating to homeowner’s insurance: (1) the criteria and requirements for estimates of replacement value of insured property; and (2) educational requirements for insurance producers related to homeowner’s insurance – including estimating replacement values. The…
Yesterday, CBS News 4 ran a segment on the 6:00 pm news addressing the failure of HOAs to produce records to owners as highlighted in the 2011 Annual Report of the HOA Information and Resource Center. While we can always count on news outlets to run a sensationalized “HOA horror story,” the good news is the story they recounted ended with the HOA ultimately doing the right thing by producing records. Continue Reading CBS News 4 Covers HOA Records Bill
Last Friday, I attended a legislative briefing by the Director of the Division of Real Estate and the HOA Information Officer on the findings outlined in the 2011 Annual Report of the HOA Information and Resource Center (“Annual Report”). Having repeatedly reviewed and written about the Annual Report, I wasn’t surprised to hear the comments relating to things like transparency and the failure of some HOAs to produce records. What did catch my attention was the contention that some HOA law firms are inappropriately utilizing foreclosure as a remedy for past due assessments or to push folks out of their homes.
I have to say that I found it interesting that “HOA law firms” were classified as a potential decision maker on whether an HOA will foreclose on a delinquent owner. The decision to proceed with a foreclosure should never be delegated to a law firm or an insurance company for that matter. Instead, the boards of HOAs should always make this decision on a case-by-case basis after carefully considering their options and the potential ramifications of proceeding with foreclosure. Continue Reading HOA Foreclosures: Case-by-Case is Key
This morning, the Denver Post ran a front page story entitled HOA house may get put in order. While the story opens with a sensationalized account of a foreclosure which was not tied to manager misconduct, the story recognizes CAI as the leader in promoting the competent management of community associations in Colorado. As Chris Pacetti was quoted as saying, “We are trying to establish a level of professionalism and performance in the industry.” The article further highlights the need for criminal background checks, training and licensure.
Brian Tobias, the Senior Policy Analyst at the Colorado Department of Regulatory Agencies (“DORA”) who is conducting the Sunrise review, boiled down the review process as follows: “A key question that the state is asking is whether community association managers cause harm, and, if so, would regulation fix it.” Continue Reading Denver Post Covers Manager Regulation
This at least should be a rule through the letter-writing world: that no angry letter be posted till four-and-twenty hours will have elapsed since it was written. ~ Anthony Trollope
In my life outside of community association law practice, I volunteer with Denver Public Schools (“DPS”). On more than one occasion, my work with DPS, and in other volunteer roles, has allowed me to better relate to the challenges that association board members experience in their roles as community leaders – whether it’s the time commitment, strong emotions, opposing views, an unclear governance model, or thousands of e-mails flooding my inbox, I’ve experienced it.
Most recently, I served as co-chair for a large community committee that participated in a year-long process of monthly, and sometimes weekly, meetings. At the committee’s inception, a member of the general public submitted a Colorado Open Records Act (“CORA”) request to DPS, asking for all documents related to the committee’s work. DPS administration informed me and the rest of the steering committee of this CORA request to make us aware that the contents of our e-mails would get released to the constituent.Continue Reading Association Records: Navigating the Electronic “Paper” Trail
Today House Bill 12-1237 (“HB 1237”) was introduced in the Colorado General Assembly to address the issue of the retention and production of community association records. CAI’s Colorado Legislative Action Committee (“CLAC”) worked with Representative Angela Williams to draft this bill which seeks to provide clarity to management, executive boards and owners on exactly what records must be retained by an association and produced to owners upon request.
Given the fact that the current records provision of the Colorado Common Interest Ownership Act (“CCIOA”), C.R.S. 38-33.3-317, is the provision that received the most complaints by the HOA Information Officer – introduction of this bill is very timely.
HB 1237 is substantially based upon revisions made to a similar provision of the Uniform Common Interest Ownership Act (“UCIOA”) by the National Council of Commissioners on Uniform State Laws. UCIOA is the model act which our CCIOA is based upon. In addition to substantially adopting the revisions made to UCIOA, the bill also inserts key provisions of the Colorado Revised Nonprofit Corporation Act into CCIOA.
Here are some highlights of HB 1237:Continue Reading Bill Introduced to Address Association Records
My son’s latest obsession is chess. He joined the chess club at school, got a new chessboard, downloaded chess apps to all the electronics he could get his hands on, and started reading strategy books. On a snow day like today, it’s no surprise that we’re spending part of the time playing chess. In the midst of our moves, I can’t help but think how the game of chess translates to the business of community associations. Whether in chess or association decision-making, the following tips come in handy:
Know the moves. Chess involves a finite number of pieces, and the basic moves are easy enough to learn. As a board member, the “pieces” and moves at your disposal are much more numerous and complex. You will need to understand the moves available to you under your association’s governing documents. You’ll also consider what the association’s budget can support, the politics and dynamics of the community, options presented by vendors, and advice from attorneys, engineers, accountants and management.Continue Reading Does Your Association Board Operate Like a Chess Master?
As many of you have heard, there is a new collection option called G.A.P. ("Guaranteed Assessment Program") being marketed to associations throughout Colorado. It’s presented as insurance that pays the association a portion of assessment fees in exchange for a yearly premium based on a percentage of the association’s annual budget and associated risk. At first glance, this may seem like a cost effective and innovative way to collect delinquent assessment fees. However, when exercising your due diligence, here are some things that your board of directors should consider:Continue Reading G.A.P. Insurance: Exercise your Due Diligence before Signing Up
