SB24-021
Exempt Small Communities from HOA Requirements
Concerning exempting certain small communities from certain requirements of the "Colorado Common Interest Ownership Act".
Current law exempts certain small cooperatives and limited-expense planned communities from most of the requirements of the "Colorado Common Interest Ownership Act", which governs the conduct of homeowners' associations (associations). A cooperative or planned community may avail itself of the exemption if:
A cooperative was created on or after July 1, 1992, but before July 1, 1998, and either contains only units restricted to nonresidential use or contains no more than 10 units and is not subject to any development rights;
A planned community was created on or after July 1, 1992, but before July 1, 1998, and contains no more than 10 units and is not subject to any development rights, or if a planned community provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes may not exceed $400, as adjusted for changes in the consumer price index (CPI);
A cooperative or planned community was created on or after July 1, 1998, and contains only units restricted to nonresidential use or contains no more than 20 units and is not subject to any development rights; or
A planned community was created after July 1, 1998, and provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes may not exceed $400, as adjusted for changes in the CPI.
The bill combines these exemptions, with amendments, to state that a cooperative or planned community may avail itself of the exemption if:
A cooperative or planned community was created on or after July 1, 1992, and either contains only units restricted to nonresidential use or contains no more than 20 units and is not subject to any development rights; or
A planned community provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes must not exceed $400, as adjusted annually since July 1, 1999, for changes in the CPI.
Learn More at: https://leg.colorado.gov/bills/sb24-021