AND THEY ARE OFF…

The Colorado Legislature gaveled into session on January 12, 2022, and it did not take long to introduce the first three Common Interest Community Bills.  The topic of the three bills relate to access to the common elements and the use of proxies in association operations.

• HB 22-1040 “Concerns the Right of Unit Owners in Common Interest Communities to Have Reasonable Access to Common Elements of Such Communities.”  This bill, sponsored by Representative Rich (R) (Mesa County) and Representative Hooton (D) (Boulder), has already passed out of committee and was sent to the House for a vote.  As drafted, HB 22-1040 requires, that when making repairs to the common elements, the association may only:
  
  • Restrict access, or prohibit unit owners’ and guests’ access to and enjoyment of, the common elements only to the extent and for the length of time necessary to:
    
    • Protect the safety of any individuals, including unit owners, guests and individuals performing the maintenance;
    • Preserve the structural integrity or condition of a repair, replacement or modification.
      
  • If the association must restrict access to the common elements for more than seventy-two hours, the association must:
    
    • Provide an electronic or written notice to each unit owner as soon as possible which must include:
      • A simple explanation of the reason for the restriction or prohibition;
      • An indication of the estimated time or date upon which the restriction or prohibition will no longer exist;
      • A telephone number or email address whereby a unit owner may pose questions or concerns about the restriction or prohibition for the consideration of the association; and
    • Post a visible, clearly legible notice at each physical access point to the common element, which notice must remain posted for the duration of the restriction or prohibition and include the above described information.

As of now, this bill has no listed sponsor in the Senate. Also, as of now, this bill has no other sponsors.

•      SB 22-059 is a bill which concerns the “limitations regarding a Proxy that a Unit Owner in a Common Interest Community obtains from another unit owner in the Common Interest Community to Vote on Behalf of the Other Unit Owner at a Meeting of the Unit Owners’ Association.”  While this is a long description, the bill really only has one purpose, to limit the length of time a person may grant a proxy.  Currently, the manner in which a person may grant a proxy is very liberal and unless dated, a proxy is valid for 11 months.  SB 22-059, sponsored by Sen. Holbert (R) (Douglas), Rep. Hooton (D) (Boulder) and Rep. Ransom (R) (Douglas), puts limitations on the use of proxies.  As drafted the bill will:

• Require a proxy state the specific meeting to which it is being granted and a specific matter for which the proxy is granted; 
• If a proxy is to be used for something other than the specifics stated above, a new proxy must be issued; and
• For associations with fifty or more units, a proxy holder may hold proxies representing no more than 5% of the owners.  Any proxies given to a person having greater than 5% of the voting power may only be used for quorum purposes.

If passed, this bill will have the effect of making efforts to harvest proxies more difficult and will also prevent boards from voting large blocks of proxies.

• SB 22-060 is a bill “Concerning limiting Home Owners’ Association Fee Increases for Common Element Use.”  Introduced on January 18, 2022, the bill is sponsored by Sen. Bridges (D) (Arapahoe) and is scheduled for a hearing on February 8, 2022.  Currently CCIOA allows an association to charge reasonable use fees for common elements.  For example, renting of the association’s clubhouse for a private party.  The bill as drafted will:

• Restrict the year over year increase in the use fee to 10% unless approved by a vote of at least 51% of all owners in the community approve a larger increase.

Please do not hesitate to contact an Altitude attorney at 303-432-9999 or [email protected] and stay tuned to our Legislative Tracker for more updates on 2022 Legislation.