Technology expedites the work of community association board members, managers, and attorneys. Technology allows us to fully consider detailed documents before convening for in-person meetings and, in some circumstances, to request board decisions in lieu of meetings. With a few clicks, we can send project bids, opinion letters, and summaries of accounts by e-mail, and post important announcements on association websites. For these and other purposes, technology can positively serve your community associations. But community association leaders must tread carefully when using technology, particularly e-mail, for association business. Board members must keep in mind their fiduciary duties to their community associations before hitting “send” to avoid getting themselves and their associations into heated disputes and potential legal binds.

Continue Reading Board Disputes: If You Won’t Say It in Person, Don’t Say It by E-mail

Community association board members fill tough roles that require a great deal of attention to association business. We understand that, as board member volunteers, you need guidance from professionals to facilitate informed decision-making, allowing you to uphold your fiduciary duties to the association that you serve. To assist you in evaluating the legal priorities for your community, we have created this Legal Audit checklist. Place a check mark in the box beside each statement that applies to your community association–and don’t forget to complete Part 1 of the Community Association Legal Audit.

My community association has . . .

?   checked that the assessments charged to individual units match the allocated interests stated for those units in the association’s governing documents.

Associations must assess individual units for budgeted expenses in accordance with the allocated interests stated in the governing documents. When we advise clients of discrepancies that we note in unit assessments and allocated interests, we sometimes hear, “We’ve always done it that way; that’s what people are used to.” If the governing documents do not align with the association’s manner of assessing owners, then past mistakes do not support future disregard for the documents.Continue Reading Community Association Legal Audit (Part 2 of 2)

Exclusivity contracts are often used by providers of video programming distributors (think cable providers) to obtain the exclusive right of access or the exclusive right to provide video service in a community. On November 13, 2007, the FCC entered its order banning exclusivity contracts between cable operators (and other multi-channel video programming distributors) and multiple dwelling unit developments. The definition of multiple dwelling units developments includes condominiums, cooperatives, and communities of single family homes. The final order from the FCC has still not been published. However, in the mean time, you can view a summary of the FCC order here, and comments, prepared by the Community Associations Institute. This action by the FCC is consistent with its belief that communication providers (internet, wireless and cable) should be subject to the greatest possible competition in providing their services, and that consumers generally benefit from that competition.Continue Reading FCC Bans on Exclusivity Contracts

We’ve written before about how the Fair Housing Act applies to common interest communities. Unfortunately, there are some (maybe many) homeowners associations and condominium associations that still don’t understand the importance of this federal law and its state counterpart, the Colorado Fair Housing Act, or if they understand, they don’t believe it applies to them. Here is a recent story of a condominium association in Hawaii that found out otherwise. Continue Reading Fair Housing Revisited

Community association board members fill tough roles that require a great deal of attention to association business. We understand that, as board member volunteers, you need guidance from professionals to facilitate informed decision-making, allowing you to uphold your fiduciary duties to the association that you serve. To assist you in evaluating the legal priorities for your community, we have created this Legal Audit checklist. 

Place a check mark in the box beside each statement that applies to your community association.

My community association has . . .

?  adopted the seven mandatory Senate Bill 05-100 policies. 

Senate Bill 05-100 requires all associations to adopt seven different responsible governance policies concerning (1) the adoption and amendment of policies, (2) board member conflicting interest transactions, (3) covenant enforcement and fines, (4) collection of delinquent assessments, (5) conduct of meetings, (6) inspection and copying of records and (7) reserve fund investments.

?  adopted the Senate Bill 06-89 dispute resolution policy. 

Senate Bill 06-89 requires all associations to adopt a policy concerning disputes between owners and the association.

?  updated Senate Bill 05-100 policies to conform to Senate Bill 06-89 requirements. 

Senate Bill 06-89 modified some of the terms of Senate Bill 05-100, creating recommended changes to the responsible governance policies.

Continue Reading Community Association Legal Audit (Part 1 of 2)

In reviewing the law regarding construction of restrictive covenants, I ran across a case I read a couple of years ago.  As I was leisurely re-reading this case I was struck by the appellate court’s interpretation of the covenants dealing with the heart of the lawsuit. No, not the validity of the developer unilaterally modifying the restrictive covenants after the sale of lots or tracts.  It was how the court concluded that sheep could be maintained on the property when under the original 1984 covenants they were specifically prohibited.

 Continue Reading What Would John Wayne Do

Sometimes unexpected things happen that require the special attention and input of the members of your Association. If a matter pops up that can’t wait until the next annual meeting, a special meeting is in order. When this happens, the question we often are asked by Boards and managers is: What type of notice must we give the members before a special meeting?Continue Reading Notice of Special Meeting – What Goes Inside?

The levying of fines against rule-breakers in the community is an effective tactic used by homeowner associations to curb misbehavior and to maintain a harmonious appearance within the community. In order to enforce and collect these fines, however, it is imperative that associations follow proper fining procedures as set out in the Colorado Common Interest Ownership Act (CCIOA), as well as any additional requirements that may be set forth in the Association’s governing documents or policies.Continue Reading Maintaining the Enforceability of Fines in Your Community

As part of the changes to Colorado’s foreclosure law that become effective January 1, 2008, C.R.S. §38-38-103(1)(c) will read:

If a recorded instrument does not specify the address of the party purporting to have an interest in the property under such recorded instrument, the party shall not be entitled to notice and any interest in the property under such instrument shall be extinguished upon the execution and delivery of a deed pursuant to section 38-38-501.

Meaning, if your association’s current contact information is not listed in your Declaration, a lender foreclosure could extinguish your association’s super priority lien.Continue Reading Colorado Foreclosure Law and Your Association’s Superlien

A CHECKLIST FOR BOARDS TO FOLLOW

1. Check your governing documents: what is required for the Association under your Declaration, Articles of Incorporation and Bylaws?

A. Also, what optional coverage are you authorized (by the documents) to consider?

B. What insurance coverage must the Owner have?

Continue Reading Seven Steps For Insurance Protection