On Monday, I blogged a reminder to HOA managers and board members about the annual disclosures associations are required to make within 90 days after the end of the association’s fiscal year. As I was thinking about creating an HOA checklist for 2012, it occurred to me that it’s important to add a reminder to renew your HOA’s registration with the Colorado Division of Real Estate (“Division”).
As you know, HOAs in Colorado were required to register for the first time with the Division prior to March 1, 2011, or face the possibility of penalties for failing to register. In early March, the Division published a Position Statement providing the opinion that pre-CCIOA communities (those HOAs created prior to July 1, 1992) were not required to register. However, since this Position Statement is not binding on the courts and the reasoning is subject to differing opinions, we have advised all of our HOA clients to register with the Division to avoid potential penalties.
The registration for your HOA is good for a period of one year. In terms of when you must renew your HOA’s registration, the HOA Frequently Asked Questions published by the HOA Information and Resource Center states: “An HOA is required to renew their registration every year. Renewal occurs one calendar year after the date that the association initially registered. If information has changed the HOA contact must change the information within ninety (90) days of such change.”
During 2011, the fee associated with registering an association was $8.00 along with a nominal processing fee. We have been informed that this registration fee will be increased in 2012. In fact, we strongly suspect the registration fee will be significantly increased. However, there is a statutory cap on that fee of $50.00.
Use this link to renew your HOA Registration.
I will continue to blog on items to include in your 2012 HOA To Do List and will publish a complete list in early 2012. If you have items you believe should be included on the 2012 HOA To Do List, please email me at email@example.com.