Recently introduced House Bill 13-1249 has been promoted as an attempt to ‘reform’ the public trustee foreclosure process by requiring lenders to prove that they hold the Deeds of Trust being foreclosed and further requiring them to negotiate and work with borrowers requesting a loan modification or other foreclosure prevention alternatives. If the Bill is passed into law, it will undoubtedly provide greater protections to homeowners which may enable them to retain their home and stimulate them to payoff their association delinquencies. A closer reading of the Bill, however, suggests that an association may be negatively impacted from the additional requirements imposed on lenders. Continue Reading Foreclosure ‘Reform’ or Headache for Associations?

We hear the term “Due Diligence” used in many different contexts, but what does it mean? According to Merriam Webster, it is the care that a reasonable person exercises to avoid harm to other persons or their property. A common transaction where this term is used is in the purchasing of a home. While many of us think of due diligence as obtaining inspections, appraisals and checking out the neighborhood and schools, one should also research if the property is located within a covenant controlled community.Continue Reading Due Diligence and Living Happily Ever After

 We write regularly about the role of community associations’ boards of directors, as well as the role of each of the directors on the board. Today I saw an interesting article about potential liability of directors.

We routinely advise boards that it is important for boards to obtain proper information, thoroughly debate issues at a board meeting and make a decision. In fact, Colorado law provides that a Board, acting within its power, in good faith and in the exercise of its business judgment, will not be liable for its decisions, even if the decision is ultimately determined to be the wrong one. This is known as the business judgment rule.Continue Reading Together We Stand – Divided We . . . Are Liable? Personally?

All Colorado community associations are required by the Colorado Common Interest Ownership Act ("CCIOA") to adopt responsible governance policies governing issues like collections, meeting procedure, and records inspection.  CCIOA does not provide a lot of guidance for the terms of these policies, but the policy regarding enforcement of covenants and rules and the imposition of fines, must provide the following:

  • Notice and hearing procedures;
  • A schedule of fines;
  • A fair and impartial fact-finding process; and
  • An impartial decisionmaker.

These minimal guidelines do not address a question we frequently see from our clients: "Do I have to tell my neighbor I ratted him out?"

Many homeowners prefer the option of anonymity when making a covenant violation complaint.  The reasons for the preference are obvious – it allows the complainant some measure of protection from an irate neighbor, and can encourage free and open violation reports.

Photo courtesy of http://theduty.tumblr.com.Continue Reading Pssst…My Neighbor is Violating the Covenants!

We get questions from time to time from associations inquiring about homeowners who have installed improvements around their home, sometimes with association approval, but oftentimes, without. Upon further examination, the association discovers that the improvements appear to encroach on the association’s property – open space, parks, etc.

The inevitable question from the association is “what can we do about it?” “Can we just remove it at the owner’s expense?” “Do we have to leave it?” “It looks okay, and we don’t mind it being there, but who is required to maintain it?” “What do we do now?”Continue Reading The Creeping Landscape – Or What’s Mine is Mine, and What’s Yours is Mine Too

Yesterday afternoon a slightly amended version of SB 183 was approved on a 3 to 2 party line vote by the Senate Local Government Committee ("Committee").  The bill is being sent for consideration by the full Senate where we expect the bill to be passed on second and third readings and then proceed to the House for consideration. 

Based…

Yesterday, Senator Morgan Carroll introduced Senate Bill 13-183 ("SB 183") to amend current law as it relates to HOAs requiring homeowners to install turf grass on any portion of property they own or are responsible for.  The bill is intended to promote the utilization of xeriscaping as a response to the drought conditions we are continuing to experience in Colorado while providing HOAs with the authority to regulate the types of drought tolerant plantings and hardscapes which may be installed by owners. 

As initially introduced, the bill provides as follows: Continue Reading Xeriscape Bill Introduced by Senator Morgan Carroll

The Colorado Senate has passed an overhauled version of SB 126 on third reading and the electric car charging station bill is now headed to the House of Representatives for action.  The bill has already been assigned to the House Transportation and Energy Committee and we expect the bill will continue to move swiftly through the legislative…

Just minutes ago, the Senate passed the overhauled version of SB 126 on second reading by a voice vote on the floor without further amendments. 

Republican Senator David Balmer spoke before the vote in opposition to the bill citing constituent concerns that older apartment buildings are not wired appropriately to host electric car charging stations.  Republican Senator Kevin Lundberg …

The Senate Local Government Committee just passed out of Committee an overhauled version of SB 126 which was introduced by Senator Guzman to address the installation of electric car charging stations in apartment buildings and HOAs.  In terms of HOAs, the bill as amended, provides as follows:Continue Reading Overhauled Electric Car Charging Station Bill Passed by Senate Local Government Committee