Governance

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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)

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

Board members and managers often ask us to explain the fiduciary duties of board members to the community associations that they serve. We have compiled some information to guide directors in their roles. As you read this information, you will discover that, at the most basic level of decision-making, directors must make reasonable decisions after considering the information available. In advising boards, we recommend that directors try to recognize the emotions involved in a given situation and avoid letting the emotions, rather than the facts and interests of the association, guide the decision-making process.

What is a fiduciary?  Webster’s Dictionary defines "fiduciary" as follows:

adj. of, relating to, or involving a confidence or trust: as a : held or founded in trust or confidence b : holding in trust c : depending on public confidence for value or currency

Fiduciary duties arise from special relationships that the law recognizes.  Examples of fiduciary relationships include doctor-patient, attorney-client, trustee-beneficiary, and board of directors-corporation.  Continue Reading Fiduciary Duties of Board Members: An Overview