January 2015

This morning as I was driving to work, I was thinking about the interpersonal conflict I have recently been observing in some HOAs.  While it may be convenient for folks to blame all of the nastiness on a full moon, I truly believe much of the conflict in associations simply comes from folks not listening to each other.  The truth is that deep down inside every person wants to be heard and treated with…

On January 1, 2014, new legislation went into effect requiring associations to provide a specific written notice to delinquent homeowners. This notice is required prior to turning over a matter for collections to an attorney or collection agency.

The details of the notice are as follows:

a. It must contain the amount due with an accounting of how the total was determined (a running balance ledger going back to a -0- balance is sufficient);

b.  A statement as to whether the opportunity to enter into a payment plan exists and instructions for contacting the community association manager and/or board member to enter into such a payment plan;

c.  The name and contact information for the individual the unit owner may contact to request a copy of the unit owner’s ledger in order to verify the amount of the delinquency; and

d.  A statement that action is required to cure the delinquency and that failure to do so within thirty days may result in the unit owner’s delinquent account being turned over to a collection agency, a lawsuit being filed against the owner, the filing and foreclosure of a lien against the unit owner’s property or other remedies available under Colorado law.Continue Reading Clarifying the Collection Notice Requirements to Delinquent Homeowners

The Division of Real Estate has just announced that the Community Association Manager licensure exam will be available to take on February 1st!  Here’s the latest news from the Division of Real Estate:

Community Association Manager Examination Available February 1, 2015

The Division of Real Estate has contracted with Psychological Services, Inc. (PSI), as the…

The Colorado Division of Real Estate has announced that a hearing on permanent rule-making for manager licensure will be held on Wednesday, March 4, 2015, at 10:00 am at the Ralph L. Carr Colorado Judicial Center in Conference Room 1D. 

We have heard an outcry from management companies of every size that the emergency rules relating to insurance will put management companies out of business.  This is your chance to attend the hearing to testify on insurance and other important rules which are under consideration by the Division.  Since the Division has given so much advance notice of the hearing, make sure to clear your calendar for that day and attend! 

Here’s the formal announcement from DORA and the Division of Real Estate:Continue Reading Hearing on Permanent Rule-Making for Manager Licensure Scheduled

Winter in Colorado is sure to bring cold weather, snow, and urgent phone calls about broken water lines and slip-and-fall accidents on common areas. The problems usually start when the temperature begins to warm up after a cold spell or heavy snowfall. Water suddenly streams out of broken pipes, or snow melts and then freezes when the temperature drops at night. Whatever the circumstances, managers and board members can attest to the amount of work involved responding to owners, sorting through damages and injuries, dealing with insurance, and trying to understand legal obligations for water and slip-and-fall incidents. Most of us would love to find a magic wand that we could wave to make these problems disappear. Unfortunately, magic is not a reliable solution.

Associations can best position themselves for dealing with slip-and-fall situations by planning ahead and communicating with owners along the way. If your association is not sure what responsibility it has to remove snow and ice hazards from common areas, here are some risk management steps to help.

Review the association’s governing documents to determine responsibilities for snow removal. Different communities have different responsibilities, and your documents give direction. A condominium community may have the general obligation to remove snow from the common elements, while townhome documents may only require the association to take care of parking lots. A failure to comply with the covenants could result in claims of breach by the association, so confirming responsibilities up-front is crucial.Continue Reading Frozen? Snow and Ice – Don’t Let It Go

Representative Kit Roupe (R-Colorado Springs) has introduced House Bill 15-1113 (“HB 1113”) in an attempt to protect HOAs in Colorado from the financial consequences of lenders continuing the sale dates of public trustee foreclosures. HB 1113 would require lenders who continue the foreclosure sale beyond the first required sale date, to pay the assessments of the individual they are foreclosing upon until the lender actually sells the home. However, in an attempt to be fair to the lenders, Representative Roupe has also built into the bill exceptions to this assessment payment requirement. 

Under Colorado law, once a lender commences a public trustee foreclosure on a home, the lender is required to set the foreclosure sale date within 110 to 125 days. The lenders are then permitted to continue the foreclosure sale date for up to one year. It’s common for some lenders to continue the sale date over and over. It’s also not unheard of that after the sale date has been continued for one year, some lenders will withdraw the foreclosure and start the process and continuances all over again. Continue Reading Bill Introduced to Protect HOAs from the Financial Consequences of Prolonged Public Trustee Foreclosures

Senator Jesse Ulibarri (D-Commerce City) has introduced Senate Bill 15-079 (“SB 79”) to create a statewide affordable housing investment fund to promote the construction of affordable housing across Colorado. This is an honorable goal.

SB 79 would raise funds through imposing a $2 surcharge on every document recorded with every county clerk and recorder in Colorado. To…

As predicted, the first construction defect bill of the session has been introduced in Colorado and it’s a real whopper! Senator Ray Scott (R-Mesa County) has introduced Senate Bill 15-091 (“SB 91”), which would cut the statute of repose in half for construction defects.   

While statutes of limitations and repose for construction defects can be very complicated to figure out in Colorado, the statute of repose governs the timeframe during which a homeowner can bring legal action for construction defects after substantial completion of their home has taken place. SB 91 reduces the 6 year period of time currently permitted under Colorado law to 3 years. In addition, if a defect is discovered in the second or third year after substantial completion of the home has occurred, the owner of the home will only have 1 year to bring their legal action. This provision provides a double whammy by cutting the current 2 year statute of limitations in half! Continue Reading First Construction Defect Bill is a Whopper!

You probably read plenty of articles on our blog in which we remind associations to ensure they have adopted and are enforcing their responsible governance policies and rules and regulations.  While owners have a legal obligation to comply with the covenants and rules, this may not extend to rules that are in violation of or contrary to local, state or federal law.

Continue Reading Hierarchy of Rules

Representative Dan Thurlow (R-Grand Junction) has introduced House Bill 15-1040 (“HB 1040”). The bill is intended to greatly reduce the individuals who are required to be licensed by the Division of Real Estate as community association managers. Frankly, if you look at the practical implications of the bill, HB 1040 would essentially destroy most of the manager licensure requirements which were intended to protect folks living in common interest communities and to elevate the profession of community association management. 

HB 1040 has been assigned to the House State, Veterans & Military Affairs Committee (“State Affairs Committee”) where it is almost certain that this bill will die. In a nutshell, if passed, HB 1040 would provide:Continue Reading Manager Licensure “Modification” Bill Introduced