Have owners in your association ever approached you with a request to switch assigned parking spaces or garages that are allocated as limited common elements and your association’s documents? What did you tell them, and did you know that the Colorado Common Interest Ownership Act (“CCIOA”) specifically addresses this issue for post-CCIOA communities (i.e. created after July 1, 1992)? Specifically, Section 208 of CCIOA sets forth a process by which limited common elements may be reallocated between owners in an association.
The first, and perhaps most important, thing to remember is regardless of what your declaration may state, CCIOA requires the consent of all unit owners to whom the limited common elements are assigned. This means a request by one owner to switch parking spaces with another owner cannot move forward unless the second owner agrees to the swap. Neither one owner, nor the association can force another owner to change parking spaces if that owner does not wish to do so.
Assuming the pertinent owners agree on the change in allocations, you will need to review your declaration to determine if there are any specific requirements for the reallocation. However, in addition to any requirements contained in the declaration, Section 208 requires the requesting owners to submit an application seeking approval of the proposed reallocation.
The application must meet the following criterion:
- The application must be signed by all applicants;
- A proposed form amendment to the declaration or plat (if necessary) must be enclosed;
- A deposit against attorney fees must be enclosed; and
- The applicants must provide such other information as may be reasonably requested by the board.
CCIOA also makes it very clear that until/unless the board approves the reallocation, and an amendment is recorded (if necessary), the reallocation is not effective.
Also, keep in mind that although a declaration/plat amendment may not be necessary, a reassignment document may still need to be drafted, signed by the pertinent parties, and recorded with the county to ensure all future owners of the pertinent units are on notice of the new allocations. Make sure you consult with the association’s legal counsel on this issue to ensure the appropriate documents are getting recorded, if needed.
If your association experiences parking, garage, or other reallocation requests on a consistent basis, it may be a good idea for the board to adopt a policy setting forth the process for accomplishing this and provide forms that owners can use to effectuate such reallocation.
For more information concerning reallocation of limited common elements, or if you have specific questions, please contact one of our attorneys at 303.432.9999 or [email protected].