August 2013

As this series of blog entries continue to analyze what homeowners, board members and managers can do to constructively handle conflict in HOAs; we have already stressed the importance of folks understanding what is at the heart of a conflict and the importance of really listening to what the other individual is saying. However, the importance of using good interpersonal skills does not stop there.

Tip #3: Folks in a Conflict Must Strive to Use Neutral Language and ToneContinue Reading Constructively Managing Conflict in HOAs: Tip #3

I recently read an article about a homeowner in Texas who received a violation notice from her homeowners association as a result of chalk drawings left on her driveway by her son – something the owner and neighbors do not feel the Association’s governing rules specifically address.  The article goes on to state that the owner and her neighbors organized an event where they handed out bundles of chalk to kids from the neighborhood who gathered to decorate their sidewalks and driveways. While this may be a knee-jerk reaction for most folks, intentionally violating the rules in an attempt to  “send their neighborhood association a message” may only worsen the situation by subjecting more owners to similar violation notices and potential fines.  Though the Association may not have a rule specifically addressing chalk use, most Association’s have rules and regulations that deal with the maintenance and upkeep of a property and require owners to keep their property in a clean, safe, and attractive manner – something “chalk drawing” could surely fall under. Continue Reading Chalk Another One Up to Bad Communication

For those of you who follow our Colorado HOA law blog, you know that last week I started a series of blog entries aimed at providing tips on how to constructively manage conflict in HOAs. I’m convinced that if homeowners, board members and managers keep these tips in mind, it will give everyone involved a real chance at resolving conflict before things get out of hand. 

Tip #1 from last week, was “Be real about what is bothering you.” Here is Tip #2 for your consideration:Continue Reading Constructively Managing Conflict in HOAs: Tip #2

You may have heard that there is a "cloud" on the title to your property.  Generally speaking, a "cloud" appears when a recorded document indicates that some other person may have an interest in the property.  Liens, court orders, easements, and random documents can be recorded to cloud a title.  Some clouds aren’t really cloudy at all.  For example, while a mechanic’s lien may appear on your record, they expire quickly and become unenforceable.

Usually, a document clouding your title is there for a good reason.  If you don’t pay your taxes or HOA assessments, the unpaid entities will record liens against your property.  Remove the liens by paying your bills.Continue Reading There’s a cloud on my title? What’s that?

CAI National has just published the following statement on a new Freddie Mac policy addressing delinquencies in superlien states.  Since Colorado is lucky enough to be a superlien state, this new policy will impact Colorado HOAs.  Here is what CAI has to say about the new policy: Continue Reading Freddie Mac Revises Policy on Assessment Delinquencies in Superlien States

You are probably no stranger to conflict if you have served on the board of, managed or lived in an HOA. We all assume that conflict is bad and something that should be avoided at all costs. In fact, I don’t know many folks who are actually comfortable with directly facing conflict. However, when handled properly, conflict in the HOA setting can actually be a blessing in disguise. Conflict can bring issues out into the open to be constructively reviewed and resolved. 

For conflict to be handled appropriately, both boards and homeowners must do their part. This series of blog entries will focus on important steps both parties should take when dealing with conflict. So here we go:

 

Tip #1: Be Real About What Is Bothering YouContinue Reading Constructively Managing Conflict in HOAs: Tip #1

 Readers of this blog know that CCIOA came into effect on July 1, 1992, but by its definitions, only applied to certain common interest communities, and further, only in limited respects to those communities formed before July 1, 1992. Many legal practitioners held the opinion for many years that CCIOA did not apply to homeowners associations that did not actually own any real property that they were responsible for maintaining, improving, insuring, or paying taxes for.

However, that opinion changed in 2009, when the Colorado Court of appeals issued a ruling that essentially said that CCIOA does not require ownership of real property by the homeowners association. Rather, by the terms of CCIOA, if the owners in the homeowners association were bound to pay assessments, and the assessments were used in part to pay for enforcement of the restrictive covenants or provide services to the members, that was sufficient to make the community subject to CCIOA.Continue Reading When Your Community Doesn’t Own Anything, Is It Subject to CCIOA?

It is my pleasure once again to teach the annual Legislative Update for Homeowner Associations which is hosted in Aspen by the Aspen/Pitkin County Housing Authority (APCHA).  This seminar is free of charge and is open to board members, homeowners and HOA managers.  If you live in the Aspen area or are vacationing there, please join us for this seminar!  In addition to the information in this APCHA flyer, here are some specifics you need to know:

Date of the Seminar:  Thursday, August 22, 2013

Time:  11:30 am to 1:30 pm

Location:  Aspen City Council Chambers located at 130 South Galena Street

For more information and to RSVP, please call APCHA at 970-920-5050

Hats off to APCHA for providing this outstanding service for those living in and serving HOAs in the Aspen area!Continue Reading HOA Legislative Update Class Hosted by APCHA in Aspen!

Lately I have been running into folks who have had a lot to say about how boards of HOAs are enforcing use restrictions in the declarations for their communities (commonly referred to as "covenants") and the rules and regulations which I will refer to as the "rules."  While there are always two sides to every story, I thought it would be useful to to address some basic concepts which every board should be aware of when dealing with enforcement issues.   So here we go:

1.  Boards have a fiduciary duty to enforce the use restrictions in the declaration for their HOAs and the rules.  Owners have a legal obligation to comply with the use restrictions and rules.

2.  While Boards have the duty to enforce use restrictions and the rules, boards also have the authority under Colorado law to examine the unique circumstances behind particular violations and to exercise their reasonable business judgment on a case by case basis to determine whether to enforce or how far they should go with enforcement.    

3.  As a general rule, board members are also homeowners in their associations.  That means the board members also have a legal obligation to comply with the use restrictions and rules.   Compliance for board members is not optional!  In fact, if board members are not in compliance, how can they expect to require or enforce compliance from other owners?  Also, board members should be careful not to inappropriately give preferential treatment to their neighbors, family or friends. 

4.  Boards do not have the authority to levy a fine against an owner for a violation unless they first give that individual notice of the alleged violation and an opportunity for hearing to determine whether the violation occurred. Continue Reading Basic Enforcement Concepts for HOA Boards