The 2009 legislative session began with relatively few bills affecting Colorado common interest communities. But the last few weeks of the session more than made up for the slow start. New laws concerning community association governance do the following: (i) mandate that association boards have access to extensive, specific information to assist with their decision-making, (ii) establish qualifications for individuals serving as committee chairs, and (iii) require policies concerning reserve programs. Other laws enacted but not discussed in this article include restrictions on affordable housing units, modifications to foreclosure time frames for some borrowers, and changes to provisions of the Colorado Common Interest Ownership Act applicable to small, exempt communities. The table below gives a summary of the new laws affecting association governance, the action required by associations, and the effective dates of the laws.
|Board members must have equal access to information, including detailed monthly expenditures, association contracts, and legal opinions
|Ensure that the association’s documents include all of the materials required by statute and make those documents available to board members; consider amending association documents to prevent board members with disputes against the association from having access to legal opinions
|August 5, 2009
|States the applicable guidelines for appointment of people presiding over association committees; makes committee chairpeople subject to the same qualifications as required by the governing documents for executive board members
|Review the association’s governing documents to determine what qualifications apply to board members; check to make sure committee chairpeople meet the qualifications stated in the documents; appoint new committee chairpeople if necessary
August 5, 2009, for the appointment guidelines
August 15, 2009, for meeting executive board qualifications
|Requires the adoption of an additional responsible governance policy that addresses the association’s schedule for reserve studies, identifies whether a reserve funding program exists, and states the basis for the reserve study
|Adopt a policy concerning the association’s reserve program; consult with legal counsel on what the association’s documents require and how to draft this policy to comply with the law’s requirements
August 5, 2009, for CCIOA communities
July 1, 2010, for pre-CCIOA communities
If your association would like assistance with how to comply with new laws affecting common interest community governance, including the preparation of policies that align with the statutory requirements, contact one of our attorneys to discuss your association’s specific needs.