Once again we read about an unhappy owner in his homeowners association acting out his aggression toward the association’s board of directors. This time, the owner shot and killed two members of the association’s board of directors because the board approved removal of three pine trees that shielded the owner’s view of overhead power lines behind his home.

Is it just our collective imaginations, or is there really more aggression and violence toward association boards? I suspect it is not just our imaginations. While some of the evidence is anecdotal, here in our office it truly seems that association boards face more hostility, aggression and violence.Continue Reading Violence Toward the Board – What Can You Do?

The following communication from CAI’s Colorado Legislative Action Committee (CLAC) has been sent to CAI members in Colorado on the introduction of bills addressing manager licensure and HOA debt collections.  In addition to future communications from CLAC, stay tuned to this blog for important updates on these significant bills as they proceed through the legislative process.

Two Significant Bills Introduced Impacting HOAs in Colorado

 

House Bill 13-1277; Community Association Manager Licensure

Representative Angela Williams (D – Denver), Chair of the House Business, Labor, Economic and Workforce Development Committee, has just introduced House Bill 13-1277 (HB 1277) in the House of Representatives to require the licensure of community association managers and designated executives of management companies in Colorado. Senator Morgan Carroll (D-Aurora), the Senate Majority Leader, is the primary sponsor of the bill in the Senate. This bill will begin in House and is assigned to the Business, Labor, Economic and Workforce Development Committee. 

 

Through a licensure program, the purpose of HB 1277 is to ensure the competency of community association managers and management company executives who are responsible for the direct supervision of managers. While CAI’s Colorado Legislative Action Committee (CLAC) submitted an application (which included a recommendation for a licensure program) to the Colorado Department of Regulatory Agencies (DORA) last year to determine whether the licensure of community association managers was necessary, HB 1277 was not drafted by CLAC but does include many of our recommendations. 

 

Here are some of the highlights of the bill as originally introduced:Continue Reading Important Communication from CLAC: Two Significant Bills Introduced Impacting HOAs in Colorado

Late this afternoon, House Bill 13-1276 ("HB 1276") was introduced in the Colorado House of Representatives by Representative Angela Williams (D-Denver) who is the Chair of the House Business, Labor, Economic and Workforce Development Committee ("Labor Committee").  The co-primary sponsors of the bill in the Senate are Senator Morgan Carroll (D-Aurora) and Senator David Balmer (R-Centennial).  The bill will begin in the House and has been assigned to the Labor Committee.

The purpose of the bill is to: (1) de-escalate the scorched earth perception that HOAs immediately resort to foreclosure when small delinquencies are at issue; and (2) to provide a one-time opportunity for homeowners to enter into a payment plan to satisfy their delinquency prior to their account being turned over to a collection agency or attorney for legal action.

Here are a few highlights of the bill as originally introduced: Continue Reading HOA Debt Collection Bill Just Introduced in Colorado

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