1. Yours? Mine? Ours? HOA And How To Avoid Them Sally Yerger Colorado Civil Rights Division

2. What is a Common Interest Community? A community where portions of the real estate are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate ownership portions. A community in which the property is owned by an association with each member belonging and having exclusive right to possession of a unit. A “Phased” community: the developer still owns some units or land and private owners own other units or land.

3. SB 100 & SB 089: Effective 1/1/06 Impacts all aspects of common interest community governance, including: Meetings Policies Record-keeping Document amendments Use Restrictions Elections

4. Seller shall provide or authorize the HOA to provide upon payment of the HOA’s usual fee: All of the common interest community’s governing documents and financial documents, as listed in the most recent available version of the contract to buy and sell real estate.

5. Seller Disclosures to Buyer before title deadline: The property is located in a common interest community The new owner of the property required to be a member of the HOA New owner subject to the bylaws, rules and regulations of the community New owner has a financial obligation to pay assessments Any changes to the property subject to review by the architectural committee

6. Organization of HOA Association may be set up as nonprofit, not-for-profit or limited liability company Structure does not affect substantive rights under the Colorado Common Interest Act

7. Enforcement of HOA Rules Gives HOA the right to require “reasonable attorney’s fees” for unpaid dues or other collection matters without having to file a legal proceeding. Any unit owner can “seek” reimbursement for attorney’s fees without going to court if they are harmed by another’s failure to comply with HOA rules

8. Attorney’s Fees The court is to award attorney’s fees and costs to the prevailing party on any claim or defense on an enforcement action This means filing a lawsuit If the individual owner prevails, they will be awarded attorney’s fees The association cannot allocate any portion of its attorney fees to that owner

9. Alternative Dispute Resolution Alternative dispute resolution such as mediation or arbitration encouraged but not required, as an alternative to law suits to resolve disputes between the association and an owner. Written HOA policy for such dispute resolution is required.

10. Meetings Notices of owner meetings must be physically posted in a conspicuous place to the extent feasible Electronic posting or electronic mail notices may be given Owners may speak at “appropriate” times designated by the HOA board Reasonable number of speakers per issue Reasonable time limits on speakers may be imposed

11. Amendments to Declarations Declarations may not require approval of more than 67% of owners If first mortgagee consent is required for amendments, association must send dated written notice and copy of proposed amendment by certified mail to each first mortgagee.

12. Amendment Publication Association must also publish a notice of the amendment at least twice, one week apart, in a newspaper of general circulation in the county where the property is located. If the first mortgagee does not respond in 60 days, the mortgagee is deemed to have approved the amendment.

13. Responsible Governance Policies Association must maintain accounting records using generally accepted accounting principles Adopt policies, procedures and rules and regulations re collections, conflicts of interest, conduct of meetings, enforcement of covenants, notice and hearing procedures, scheduling of fines and amendment of policies and rules.

14. Public Disclosures Required within 90 days of any change: Name of association and community Name of designated agent or management company Address and Phone number for both association and management company Initial recording date of declaration and recording information Any changes to be made available in 90 days

15. Info to be made available within 90 days after end of fiscal year: Date on which fiscal year begins Operating budget Current assessments Annual financial statements Minutes of board for preceding year Amounts in reserve Results of any audit List of any association insurance policies Bylaws, Rules & Regulations, Declarations Responsible governance policies

16. Audits Books and records shall be subject to an audit or review at HOA discretion, using generally accepted accounting standards by a qualified person Audit is required only if annual revenues or expenditures are $250,000 Or audit is requested by 1/3 of owners

17. Education Requirements Board members may be compensated for expenses related to meetings and seminars on responsible governance. Association is required to provide education to owners on an annual basis as to general operations of the association and the rights and responsibilities of owners.

18. Architectural Changes Applications for architectural changes or landscaping changes must be made in accordance with standards and procedures set forth in the declaration, bylaws or rules and regulations No arbitrary or capricious implementation

19. XERISCAPING Any Covenant which requires only turf, or prohibits xeriscaping, declared contrary to public policy and unenforceable. However, HOA can take action against a homeowner who allows turf to die.

20. Can’t Prohibit Patriotic Expression American Flag Service Flag Political sign 45 days before election 7 days after an election

21. Firefighting Measures: Can’t Prohibit Parking of vehicles by volunteer firefighters Removal of trees, etc., to create “defensible space” for fire mitigation Replacement of cedar shake with non- flammable roofing materials.

22. Other Provisions Voting Board member conflicts of interest Escrow agreements Association Records Homeowners Insurance Disclosures regarding receipt of governing documents

23. Withdrawal from a merged or consolidated community Criteria outlined in Colorado Revised Statutes § 38.33.3-221.5 Community has been operating for 25 years continuously Number of owners comprising the association must be 15% or less of the total number of unit owners in the merged or consolidated community

24. What Housing is Protected by State Law? State law covers all property and extends protections to housing projects of less than four units except: In connection with familial status and rooms for rent in a single family home occupied by owner Non commercial housing by clubs and religious groups for members only

25. Protected Classes Federal law Race Color Religion Sex Handicap Familial Status National Origin State Law Marital Status Creed Ancestry Local ordinances Age Military Status Sexual Orientation Gender Variance

26. What kinds of discriminatory acts are committed by HOA’s? Refusal to accommodate a person with a disability – including assistance animals Differential terms and conditions of ownership or tenancy Discrimination against group homes Refusal to allow reasonable modifications Harassment or interference based on protected class