In a prior blog post we discussed House Bill 18-1342, which proposed that all pre-Colorado Common Interest Ownership Act (“CCIOA”) communities, i.e. communities formed prior to July 1, 1992, comply with the budget veto process found in Section 303(4)(a) of CCIOA, which is currently only applicable to post-CCIOA communities.
As indicated in our second blog on this issue, the House, during the second reading passed the Bill with minor amendments. The amendments specifically indicate that the CCIOA budget process will not apply to pre-CCIOA communities if: (1) the association’s declaration sets a maximum assessment amount or limits the increase in an annual budget to a specific amount, and (2) the budget proposed by the board does not exceed such maximum or limit as outlined in the declaration. The Bill passed the third reading in the House and was subsequently introduced in the Senate on April 23, 2018.
The Bill was assigned to the Senate Committee on Finance and was passed during the second reading without any amendments on April 30, 2018. At this point, it looks like adoption of this bill is a foregone conclusion. If the Bill is adopted, it will become effective as of July 1, 2018.
If you have any questions on the above, or the budget process in general, please contact any of our attorneys at (303) 432-9999.