By Maris S. Davies, Esq.
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.
Yesterday, during the second reading of the bill, the House passed HB 18-1342 an amended bill. The amendment specifically indicates 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.
If signed into law as amended, pre-CCIOA communities will have to comply with the CCIOA budget ratification procedures found in Section 303(4)(a) unless the pre-CCIOA community’s declaration meets the exception stated above and the board stays within the stated budgetary restrictions in the declaration.
Please note if this bill is signed into law it will be effective for any and all budgets adopted by pre-CCIOA communities 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.