The Colorado Common Interest Ownership Act (CCIOA), CO Rev. Stat. § 38-33.3-101, et. seq., governs the formation, management, powers, and operation of all common interest communities in Colorado, regardless of when those communities were created. However, some provisions apply only to communities created after July 1, 1992.
This piece of legislation requires that HOAs implement a new Reserve Study Policy. In essence, this new policy must address four issues: (1) When a reserve study has been done or will be done, as well as how a new study will be completed. (2) Whether the study will be based on a physical and financial analysis. (3) How the Association plans to fund the work recommended in the plan. (4) Finally, HB 09-1359 requires that all Executive Board Members shall have available to them all available information relevant to the Association’s operation, including reports of details monthly expenditures, contracts with which the Association is a party, and copies of communications, reports, and opinions to and from officers of the Association.
HB 21-1310 is an amendment to CCIOA § 38-33.3-106.5(1)(a-c). The legislature has expanded an Owner’s right to display flags and signs on the Owner’s property. Pursuant to the new law, HOAs may not prohibit signs and flags to be displayed on an Owner’s Property on the basis of the flag’s or sign’s subject matter, message, or content, except that the HOA can prohibit flags or signs with a commercial message. HOAs are still authorized to restrict the number, placement/location, and size of such flags and signs.
The first part of HB 21-1229 specifies that an HOA cannot prohibit an Owner from installing non-vegetative turf grass (artificial turf) in the backyard of a residential property. The Board can still adopt design or aesthetic guidelines or rules that apply to non-vegetative landscapes.
HB 21-1229 also clarifies that an HOA cannot apply restrictions on the dimensions, placement, or external appearance of a renewable energy generation device if such restrictions would result in an Owner’s cost of the device increasing by more than 10% or result in a decrease in the efficiency of the device by more than 10%. This new language also requires that an HOA Board respond to an application within 60 days of receiving the application. Otherwise, the application is deemed approved by law. If such application is denied, the basis for denial must be described in reasonable detail to the Owner.
The last portion of HB 21-1229 amends the record requirements in CCIOA. The bill requires that HOAs maintain a list of the current amounts of all unique and extraordinary fees, assessments, and expenses that are chargeable by the HOAs in connection with the purchase or sale of a unit (transfer fees, record change fees, and the cost for a status letter or statement of assessments due). The HOA must also provide to a requesting Owner the public disclosure information provided in C.R.S. 38-33.3-209.4.
This piece of legislation creates rights for members of HOAs who want to install energy-saving devices and energy-conservation measures on their property. HOA Boards have found themselves struggling to reconcile the architectural guidelines of their governing documents with these new restrictions. After a quick review of your governing documents by our attorneys, we can recommend the course of action that your Board should pursue—if any action is necessary—in order to update the rules of your HOA with this new law.
When Senate Bill 05-100 was signed into law on 6/6/05 in Colorado it significantly changed the operations and governance of HOA’s, requiring that more information be provided to homeowners, and providing a means for members to have more input into decisions.