As many of you are probably aware, Colorado recently passed Senate Bill 06-089, legislation intended to clean up provisions from last year’s SB 05-100. Both Bills modify and add provisions to the Colorado Common Interest Ownership Act (“CCIOA”). SB 089 creates a number of important new requirements for associations and homeowners, including mandatory procedures for a unit owner filing a claim against the association’s insurance policy and a mandatory disclosure that must be included in every residential real estate contract for property located within a common interest community. We highlight other SB 089 amendments to CCIOA in this memorandum.
Recently, we have received a number of questions from associations as to how their SB 100 Responsible Governance Policies must be modified to comply with SB 089. Although we cannot answer this question as to policies drafted by other law firms, it is our general opinion that few changes are required to these policies. Nevertheless, we recommend that both the Conflict of Interest and Inspection and Copying of Records policies be modified to reflect material changes made to CCIOA by Sections 12 and 13 of SB 089. Furthermore, we recommend that associations adopt a written dispute resolution policy by January 1st, as required by Section 5.
Please contact our office if you have any questions regarding SB 089 and its requirements. We look forward to working with you on these matters.