As reported here last month, Colorado House Bill 18-1342 becomes effective July 1, 2018. It was signed by the Governor’s office on June 8, 2018. It requires that all common interest communities, except those in which the declaration contains maximum assessment amounts or limits the increases in the annual budget, follow the process set out in Section 303(4) of CCIOA, which requires that the association’s board of directors adopt the annual budget. Then, within 90 days after adoption of the proposed budget, the board must mail, or otherwise deliver (which may include posting on the association’s website), a summary of the budget to all owners and set a date for a meeting for the owners to consider the budget. The meeting must take place within a reasonable period of time after the mailing or delivery, and in accordance with the association’s bylaws. Notice of the meeting must be provided as required by the bylaws.
If the declaration doesn’t require a different approval process, the budget does not require approval by owners, but it is deemed approved by owners in the absence of a veto at the meeting by a majority of all owners (not just a majority of the owners who show up at the meeting) or any larger percentage specified in the declaration, whether or not a quorum is present at the meeting. In other words, the owners have a right of disapproval.
If you have a community whose documents provide for the board to levy assessments based on a budget adopted by the board without owners having a right to consider or vote to veto the budget, you need to adjust the way you do business from this point forward. You may want to check with your community’s legal counsel to assure that you are complying with the new law.