In prior blog posts 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. Section 303(4)(a) was, previously, only applicable to post-CCIOA communities. HB 18-1342 has been signed into law by the Governor and, consequently, the budget veto process now applies to all pre and post CCIOA communities, with one exception.
The only exception to the CCIOA budget process is for pre-CCIOA communities where the association’s declaration sets a maximum assessment amount or limits the increase in an annual budget to a specific amount and the budget proposed by the board does not exceed such maximum or limit. However, please note the board is still required to send notice of the budget and set a meeting in compliance with Section 303(4)(a) even if no veto power will exist with respect to this specific group of owners.
The Bill will become effective as of July 1, 2018. Thus, any and all budget must be in compliance with Section 303(4)(a), subject to the limited exemption above.
If you have any questions on the above, or the budget process in general, please contact any of our attorneys at (303) 432-9999.