HB23-1105 was one of the bills affecting community associations that came out of this year’s legislative session. In brief, this bill creates a task force, under the Department of Regulatory Agencies (DORA) to examine issues confronting HOA homeowners’ rights and to prepare a report by April 15, 2024 regarding the task force’s findings and conclusions regarding the matters it examines. DORA will then review and publish the initial findings and conclusions of the task force, including the legislative recommendations, and submit those parties which include the state house of representatives and senate committees and the governor.
The task force will consist of a variety of individuals, including two HOA homeowners residing in Colorado (at least one of whom resides in a common interest community that is a disproportionately impacted community and one of whom serves on the executive board of an HOA); a community manager, a representative from an HOA homeowner advocacy organization, an attorney who primarily represents homeowners in legal proceedings against common interest communities, and an attorney who specializes in common interest community law. Designations and appointments to the task force will occur before August 1, 2023.
The task force is charged with reviewing matters such as, but not limited to, an association’s fining authority and practices, foreclosure practices, communications with homeowners regarding processes and homeowners’ rights and responsibilities, the way in which the association makes its governing documents, policies and rules and regulations available to the homeowners, and executive board actions regarding collection and legal activity against a homeowner. The task force will also look at homeowner complaints (as reported to the HOA Information and Resource Center and Homeowners’ Advocacy Groups in Colorado), CCIOA, and other state and federal laws.
If an association’s board receives a request from the task force for information, it is required to cooperate with the request, including turning over governing documents or other records in the association’s possession that have been requested.
In addition to cooperating with requests made by the task force, an association must notify its owners about the task force before the task force holds its first meeting. Here is a SAMPLE NOTICE you can send to your associations:
The Homeowners’ Association Task Force has been created by HB23-1105 with its members to be appointed by August 1, 2023. The purpose of the task force is to examine issues confronting HOA homeowners’ rights, including an HOA’s fining authority and practices, foreclosure practice, and communications with HOA homeowners regarding association processes and homeowner rights and responsibilities. If you have questions about the task force, please contact the HOA Information Office and Resource Center, which is a program of the Division of Real Estate. You may find more information about this program, including contact information, at the HOA Center of the Colorado Department of Regulatory Agencies.
The task force will hold its first meeting after its members have been designated and appointed.
In addition to the HOA task force, there is a metro district homeowners’ rights task force that will be reviewing similar matters for metro districts, including the processes for tax levying and processes for metro districts who transition from a metro district that enforces covenants and collects assessments into a common interest community.
Metro district task force members will be designated or appointed by November 1, 2023 with its first meeting to follow as soon as practicable after that date.
As with HOAs, a metro district is required to notify its residents about the task force prior to the task force holdings its first meeting.
If you have questions about the task force bill or other matters, please reach out to an Altitude attorney to discuss at [email protected] or 303-432-9999.