Right around this time of year, I start receiving calls and emails from board members and community association managers confused about what information needs to be disclosed to the owners. I’m not talking about information that needs to be disclosed in response to an owner’s request; I mean information that the association has the affirmative duty to disclose, per statute, to the owners.
C.R.S. § 38-33.3-209.4 of CCIOA requires all associations to make certain public disclosures to owners. This includes associations created prior to July 1, 1992 (pre-CCIOA associations), and those created on or after July 1, 1992 (post-CCIOA associations), with limited exceptions (time-share communities and certain exempted associations).
Keep in mind that there are two separate lists of information that need to be disclosed.
FIRST LIST: To Be Disclosed Within 90 Days of Assuming Control from Declarant
This list is only required to be disclosed once, within 90 days after the owners assume control from the Declarant. This information need not be disclosed every year, unless you are updating the association’s address, designated agent, or management company, in which case you need to make the updated information available within 90 days after the change.
Here is the information that needs to be disclosed under the first list:
1. The name of the association;
2. The name of the association’s designated agent or management company, if any, together with the agent’s or management company’s license number if the agent or management company is subject to licensure under part 10 of article 61 of title 12, C.R.S.;
3. A valid physical address and telephone number for both the association and the designated agent or management company, if any;
4. The name of the common interest community;
5. The initial date of recording of the declaration, and
6. The reception number or book and page for the main document that constitutes the declaration.
SECOND LIST: To Be Disclosed Within 90 Days after the End of Each Fiscal Year
This list needs to be disclosed every year within 90 days after assuming control from the declarant, and within 90 days after the end of each fiscal year thereafter. Here is the information that needs to be disclosed under the second list:
1. The date on which its fiscal year commences;
2. Its operating budget for the current fiscal year;
3. A list, by unit type, of the association’s current assessments, including both regular and special assessments;
4. Its annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the current annual disclosure;
5. The results of its most recent available financial audit or review;
6. A list of all association insurance policies, including, but not limited to, property, general liability, association director and officer professional liability, and fidelity policies. Such list shall include the company names, policy limits, policy deductibles, additional named insureds, and expiration dates of the policies listed.
7. All the association’s bylaws, articles, and rules and regulations;
8. The minutes of the executive board and member meetings for the fiscal year immediately preceding the current annual disclosure; and
9. The association’s responsible governance policies adopted under section 38-33.3-209.5.
As far as how to disclose the above information, C.R.S. §38-33.3-209.4(3) provides four available methods of disclosure, as follows:
1. Post on the website with accompanying notice of the web address sent via first-class mail or e-mail to all owners; or
2. Maintain a literature table or binder at the association’s principal place of business; or
3. Mail to all owners; or
4. Personally deliver to all owners.
Probably the easiest way to fulfill your disclosure requirement is to post this information on the association’s website, and send notice of the website address to all owners. You may want to combine your annual disclosure with the mailing of your annual meeting notice.
Note that the costs associated with these methods of delivery and making the disclosures available shall be accounted for as a common expense liability of the association.
Still confused? Feel free to contact one of our attorneys at 303.432.999 with any questions.