Molly Foley-Healy

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The Side Streets column in the Colorado Gazette today covered the Sunrise Application that has been filed with the Colorado Department of Regulatory Agencies to determine whether the licensure of community association managers in Colorado is necessary. The article highlights the thoughts of veteran association manager Michelle Green who manages the Flying Horse Homeowners Association.

Like many other managers who have taken the initiative to become educated in the complexities of managing HOAs, Ms. Green is concerned that virtually anyone in Colorado can become a community association manager. “Anybody can hang a shingle on a door and call themselves a management company with no previous experience,” Green said. “They’ve got the checkbooks for the associations. They are doing the financials. They should be monitored so associations don’t lose money or get embezzled.”Continue Reading Colorado Gazette Weighs In On Manager Licensure

Yesterday, 7 News provided coverage on the Sunrise Application that was submitted last Friday to the Colorado Department of Regulatory Agencies (“DORA”) to examine the need to license community association managers. 

Speaking out in support of manager licensure, Chris Pacetti who is the Chair of CAI’s Colorado Legislative Action Committee’s Manager Licensure Task Force, noted that “Anyone can operate as a homeowners’ association manager without any qualifications.” Dee Wolfe, Co-Chair of the Taskforce, stated that, “For most people, their home is their single biggest investment, so it’s doubly important to have a licensed association manager who is held to a higher standard.” Continue Reading 7 News Covers Manager Licensure Sunrise Application

Members of Community Associations Institute ("CAI") are receiving notification today from the Rocky Mountain and Southern Colorado Chapters of CAI informing them that the Colorado Legislative Action Committee of CAI ("CLAC") has submitted a Sunrise Application to the Colorado Department of Regulatory Agencies ("DORA") to investigate the need for licensing community association managers in Colorado. Here’s the communication that has been distributed to Rocky Mountain Chapter members from the Chapter President Brian TerHark:

Continue Reading Manager Licensure Submitted Today for Sunrise Review

Kenneth R. Harney, a columnist for the Washington Post, on Friday published an illuminating column on the impact the new FHA guidelines are having on the condominium market. Mr. Harney characterized this chilling effect when he wrote: “This, in turn, has abruptly shut off loan money for would-be buyers and refinancers, forcing them to pursue conventional bank loans requiring much higher down payments – sometimes 20 percent higher compared with FHA’s 3.5% minimum – which they often cannot afford.” Continue Reading Washington Post Sheds Light on FHA Debacle

As if the Federal Housing Administration hasn’t done enough already to tank the market for condominium units in the United States, it seems they are now contemplating a prohibition on transfer fees in order for a condominium association to qualify for FHA-insured loans.  Here is a report from Community Associations Institute on the issue: 

"As part of a series of training sessions on the revised, Federal Housing Administration’s (FHA) condominium mortgage guidelines, FHA informally announced that it would be issuing new regulatory guidance to address the issue of deed-based transfer fees. FHA indicated that it would likely disqualify any condominium association with deed-based transfer fees from access to FHA-insured mortgages. This news comes as condominium associations across America are still reeling from the July 2011 FHA Guidance which imposed new and confusing underwriting guidelines that conflict with condominium business practices, state law and common sense. In response to this sudden announcement by FHA, CAI has dispatched a letter warning FHA of the dire consequences to the condominium market if it follows through on its announcement.Continue Reading CAI Cautions FHA on Transfer Fees, Calls for Waiver

I have been teaching a series of workshops in the mountains focused on the Responsible Governance Policies (commonly referred to as “SB 100 Policies”) which homeowners’ associations (“HOAs”) in Colorado are required to adopt under the Colorado Common Interest Ownership Act (“CCIOA”). This week we talked about the role of directors in governing their communities with an emphasis on fiduciary duty. We reflected on the fiduciary duty of directors and how directors sometimes unintentionally – or with the best of intentions – breach this duty. 

As Suzanne Leff wrote in a blog posting entitled Fiduciary Duty of Board Members: An Overview , directors of HOAs have the following duties to their associations: (1) Duty of Care; (2) Duty of Loyalty; and (3) Duty to Act Within the Scope of Their Authority. Continue Reading Reflections on a Director’s Duty of Loyalty

My Fox Houston just reported on a story where a homeowner in a patio home community replaced a brick wall in front of his home with a wrought iron fence.  Van Tru admitted he took this step without receiving approval from his HOA because of safety concerns.  Mr. Tru reported that as his daughter went out to the family car, a man was hiding behind the brick wall and followed her. Tru believes his daughters screams caused the man to run away.

The Mission Bend Subdivision is not happy with the changes Mr. Tru made to the brick wall and have given him 90 days to restore the wall.  Legal counsel for the HOA contends that Tru could have utilized other security safeguards like an alarm system or surveilance cameras to address his concerns. Continue Reading Safety Concerns v. Architectural Approval – You Decide

Do you remember the childhood fable about the infamous Henny Penny who had an acorn fall on her head and was convinced the sky was falling? Our dear little Henny Penny freaked out telling the King and every other animal who would listen to her (including Cocky Lockey) that the "sky is falling!" Ms. Penny and her cohorts, on a quest to warn anyone who would listen about the fate of the universe, met with an untimely demise when a fox invited them into his lair and ate them all. The moral of the story: Do not believe everything you are told.

I couldn’t help but reflect on poor Henny Penny, when I read  an article published in the Green Valley News entitled HOA NUGGETS: Deal with problems early on. The article recounts a real life tale about a “previously very important person” in a Fortune 100 Company who moves into a well run high-end retirement community and convinces residents the community is going down the drain as a result of wasteful spending. He proceeds to bully folks into believing his story, gets elected to and is appointed President of the Board. From that point on, things really do go downhill for this community. Four years later, residents of the community were so fed up with this fellow’s reign that they threatened a recall. The “previously very important person” quietly resigned. Continue Reading Don’t Be A Henny Penny!

Recently, I wrote an article that was published in the October 2011 edition of the CAI Rocky Mountain Chapter’s Common Interests magazine. Colorado HOAs: At a Legislative and Regulatory Crossroads focuses on the evolution of legislation in Colorado beginning with passage of Senate Bill 100 back in 2005 through the 2011 legislative session. 

In my opinion, based upon the legislative trends in Colorado and the anticipated report from the Division of Real Estate which will be published in December summarizing complaints received about HOAs, there is no question we are at a legislative and regulatory crossroads in Colorado. Lawyers like me can pontificate on what we expect to see during the 2012 legislative session. However, the fact is that not one of us has a crystal ball. Instead, we will have to wait and see what the legislative and regulatory fall out will be from the Division’s report. In addition, there’s little doubt that HOAs will be a legislative focus in what promises to be a highly charged session rife with election year politics.

 Continue Reading Anticipating the 2012 Legislative Session for HOAs

According to Community Associations Institute ("CAI"), the Federal Housing Administration is evidently backing off a new requirement that management companies carry a fidelity bond on any condominium association they manage that would cover an amount equal to the association’s budget and reserves.  Here is what CAI is reporting: 

"Thanks to pressure from CAI members across the country, the Federal Housing Administration (FHA) indicated that it will revise a controversial regulatory mandate that would require management companies to carry a fidelity bond if they managed a condominium association. In June, FHA released new guidelines for its condominium mortgage insurance program. The guidelines set standards that condominium associations must meet in order for any potential buyer to qualify for a FHA-backed mortgage. As FHA accounts for nearly one in three condominium mortgages, the guidelines have a significant impact on the marketability of condominiums.

 Continue Reading CAI Reports FHA Backing Away From Management Company Insurance Mandate