The 2016 Colorado legislative session is kicking off today!  While the morning will be highlighted by speeches and the requisite amount of pomp, it shouldn’t take long for legislators to get down to the nitty gritty of election year politics.

The Colorado House is controlled by the Democrats and the Colorado Senate is controlled by the Republicans.  With slim margins in both chambers, it may be difficult to get much done.  This is particularly true since legislators may be focusing on their re-election campaigns and introducing legislation that will resonate with their constituents – but may not be viable bills for passage.  However, time will tell whether initiatives will be introduced which motivate members of both chambers to reach across the aisle to seek compromise.

On the HOA front, we expect the issue of construction defects to be front and center again this year.  However, if the Metro Mayors Caucus, Denver Chamber of Commerce and builders hope to get anything passed – I suspect they will need to pivot and work on a compromise bill that doesn’t destroy homeowner rights to hold builders responsible for their defective construction.  The Construction Defect Action Reform Act (CDARA) is not perfect and should be fixed.  However, this cannot be accomplished until this coalition is willing to seek a constructive and meaningful compromise.  Check out this article from the Denver Post on the legislative climate in 2016 for construction defects.   

Since the licensure of community association managers has gone live and some small HOAs are not happy about it, we may see a bill which attempts to drill down on which managers must be licensed.  We may also see a bill which attempts to prohibit the transfer fees which management companies are permitted to charge for the services they perform related to the conveyance of a home in an HOA.  if bills on either of these issues are introduced, I suspect they will be on a very bumpy road to passage and will not make it through the legislative process.  However, this is just my early prediction and we will have to see what happens. 

As always, stay tuned to this blog for important information on HOA bills as they are introduced and work their way through the legislative process.  Happy election year, everyone!