Occasionally, we are asked questions by board members or property managers who place a restriction on us: “I only want an answer if it is free.”At WesternLaw Group, we appreciate that Associations run on a tight budget. The Association operates by and through its Board of Directors, who have a fiduciary duty to the Owners to manage the Association’s affairs in an economic manner.

The Colorado Legislature continues to correct and clean-up inconsistencies, oversights, and loopholes in the policies first required by SB05-100. Among other policies, SB05-100 required that each Association establish a records policy.

WesternLaw Group is frequently asked to draft amendments for an association’s governing documents – most commonly, amending the Declaration, Bylaws or Rules. In many such instances, our response is that a total rewrite would better meet the community’s goals. Below are some of the items we look for in determining if a rewrite is a more appropriate action than applying a “band-aid amendment”.

With the close of the Colorado Legislative session, several HOA related-bills have now been signed by Governor Hickenlooper, which will soon take effect into the current law.  Below is a brief synopsis of the relevant legislation.

60% of new home buyers intend on using an FHA Loan. If your community does not have FHA condo approval, the potential buying pool of home buyers is potentially cut down by as much as 40%.  Not only does FHA approval increase the number of prospective buyers, it may increase home value and marketability of the homes in the community. 

Prior to a sheriff’s sale on a judicially foreclosed property, the Association places a bid on the property, generally in the same amount as the balance due from the previous Owner (including default assessments, and costs and fees associated with the action). The Association likely hopes that it will be outbid at the foreclosure sale, in which case the winning bidder is required to pay the balance due to the Association.

In the instance of an Owner delinquent on paying association assessments, the Board of Directors has a variety of methods to attempt to recover such assessments. While the methods may vary by the specific declaration of the association, common remedies include repayment plans, bank garnishments, wage garnishments, receivership and judicial foreclosure.

With the world becoming more and more litigious, we all fear we might be sued over everyday actions or minor mistakes.  In our market, homeowners are often trying to find a scapegoat for their financial responsibilities. Without following proper procedure, that scapegoat may be your HOA. 

In our December newsletter article about HB1237 and how it relates to email, I postulated that CCIOA enforcement mechanisms were not far off. On January 18, 2013 in the Colorado House of Representatives, Representative Su Ryden introduced House Bill 13-1134 (“HB 1134”) which takes some of first steps toward active enforcement of CCIOA.

House Bill 12-1237 (“HB1237”) will take effect on January 1, 2013. The new bill attempts to clear up ambiguity about association records, retention periods, and disclosure and inspection requirements. We have been working closely with boards and property managers to make sure that our clients are compliant as of January 1st.