From Capitol Hill/Legislation

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For the purpose of obtaining FHA approval of a condominium project, the U.S. Department of Housing and Urban Development ("HUD") has just announced a waiver on some leasing restrictions in condominium projects.  This waiver will be in effect for a period of one year. 

As you know, when a condominium project applies to HUD for approval for FHA-backed loans, one of the requirements is that at least 50% of the units must be owner-occupied. That means an association must be able to control the rental of units in the project. An obvious way that associations handle this is through rental restrictions contained in the governing documents of the association. Continue Reading HUD Relaxes Leasing Restrictions for FHA Approval of Condominium Projects

As noted in our March 1st blog posting, Representative Libby Szabo introduced House Bill 11-1116 (“HB 1116”) in the Colorado House which would regulate the ability of local governments to require citizens to pay for and utilize residential waste services provided for by the municipality in which they live.

Yesterday an amended version of HB 1116 was considered by the full House which provided that local governments (after the effective date of the new law) that plan to require citizens to pay for and utilize their residential waste services – must first provide the electorate with an opportunity to vote on whether the local government may take such action. Continue Reading HOA Inquiry Stalls Trash Bill on Floor of the Colorado House

Okay – so it has really felt like the 2011 legislative session in Colorado for HOAs has been pretty darn busy. We have battled over the assignment of junior lien rights, engaged in lengthy and sometimes intense negotiations on the superlien, reworked legislation affecting the governance of associations and the session is only half over. However, recent drama in Nevada has put our 2011 legislative session into perspective.

In addition to the federal investigation in Nevada of an alleged conspiracy targeting HOAs that we reported on in our March 7th blog posting, Senator Michael Schneider has introduced an omnibus bill in the Nevada Legislature he has dubbed “Sex, drugs and money: Why HOAs don’t work.” The bill is a whopping 43 pages long and addresses everything from regulating transfer fees to prohibiting HOAs from using radar guns to regulating the composition of HOA boards.Continue Reading High Drama in Nevada Over HOA Omnibus Bill

The Colorado Division of Real Estate (“Division”) has published a Position Statement on whether common interest communities formed before July 1, 1992 (commonly known as “pre-CCIOA communities”) are required to comply with the new HOA Registration requirements. In the Position Statement, the Division noted that “The interpretation of whether the registration requirement applies to entities not formed under CCIOA has caused significant confusion amongst homeowners’ association registrants.” Continue Reading Position Statement on HOA Registration for Pre-CCIOA Communities Published

As we approach the midpoint in the 2011 Colorado legislative session, it’s worth taking a moment to reflect on how homeowner associations (“HOAs”) are present in the mind of many legislators in the Colorado General Assembly and trends we are seeing legislatively. Here are some observations:Continue Reading Homeowner Associations – The Legislative Gift That Keeps on Giving

As we have been reminding you for several months now, the deadline for homeowner associations (“HOAs”) to register with the Colorado Division of Real Estate (“Division”) without incurring penalties is today! As reported in our December 17th blog posting, the Division granted a grace period through February 28, 2011 for HOAs to register. Here’s some important information you need to know if your association has not yet registered:Continue Reading HOA Registration – Today is the Deadline to Register Without Penalty!

The Colorado House of Representatives has passed House Bill 11-1124 (“HB 1124”) on third reading, which means the bill has cleared the full House and will now be referred to the Senate for action.  The Senate sponsor of HB 1124 is Senator Morgan Carroll.  Once the bill has been formally referred to the Senate, it will be assigned to a committee and scheduled for a hearing.  Continue Reading HOA Conflict of Interest Bill (HB 1124) Clears the Colorado House of Representatives

At the request of Representative Deb Gardner, the sponsor of House Bill 11-1197 (“HB 1197”), the bill was postponed indefinitely today by the House Economic and Business Development Committee. What does that mean? It means that HB 1197 is dead for this legislative session.Continue Reading Colorado Bankers Association Derails Superlien Bill at the 11th Hour

CAI’s Colorado Legislative Action Committee (“CLAC”) and members of CAI’s Attorney Committee have been working diligently on a rewrite of House Bill 11-1197 (“HB 1197”). As originally introduced, HB 1197 would have had a detrimental affect on the superlien which homeowner associations rely upon under the Colorado Common Interest Ownership Act (“CCIOA”). 

Representative Gardner, the sponsor of HB 1197, has worked closely with us and other stakeholders to rewrite the bill in a manner that is positive for everyone involved. As a result of these efforts, a strike-below has been drafted which will be heard by the House Economic and Business Development Committee on Thursday. Simply put, a strike-below means the provisions of the original bill are completely stricken and replaced with the language contained in the strike-below.Continue Reading Important Update from CAI’s Colorado Legislative Action Committee On the Superlien Bill (HB 1197)