As a board member or manager you are probably aware of an association’s responsibility to provide access to records in response to a member’s request. But did you know that an association has a direct obligation to disclose certain information to its members? Section 38-33.3-209.4 of the Colorado Common Interest Ownership Act (“CCIOA”) requires associations to disclose the following information to its members, some of which must be disclosed on an annual basis:
Information that Must Be Disclosed Within 90 Days after Assuming Control from Declarant
Within 90 days after assuming control from declarant, an association must make the following information available to unit owners:
- The name of the Association;
- The name of the Association’s agent or management company (and, as of July 1, 2015, the agent’s or management company’s license number if the agent or management company is subject to licensure);
- The address/telephone number for the Association and designated agent or management company;
- The name of the Community;
- The date of recording of the declaration; and
- The reception number or book/page for the declaration.
And, if the Association’s address, designated agent, or management company changes, the Association is required to make the updated information available within 90 days of the change.
Information That Must Be Disclosed Within 90 Days after the End of Each Fiscal Year
Within 90 days after assuming control from declarant AND within ninety days after the end of each fiscal year thereafter, an association must make the following information available to unit owners:
- The date on which the Association’s fiscal year commences;
- The Association’s operating budget for the current fiscal year;
- A list of the Association’s regular and special assessments;
- The Association’s annual financial statements including reserve amounts from the prior fiscal year;
- The Association’s most recent financial audit or review;
- A list of all Association insurance policies including company names, policy limits, deductibles, etc.;
- The Association’s bylaws, articles, and rules and regulations;
- The minutes of the Board and Member meetings for the preceding fiscal year; and
- The Association’s responsible governance policies (there are nine policies required to be adopted by all Associations).
How Does the Association Disclose The Above Information?
CCIOA provides four methods by which an association may disclose the above information. Associations will be in compliance with disclosure requirements as long as they provide the information in a timely manner using any one of the following methods:
- Posting on an internet web page with accompanying notice of the web address sent via first-class mail or email to all owners;
- Maintaining a literature table or binder at the association’s principal place of business;
- Mailing to all owners; or
- Personal delivery to all owners.
The costs associated with these methods of delivery and making the disclosures available shall be accounted for as a common expense liability of the association.
Time-share communities, and certain limited expense planned communities and smaller communities that qualify for exemption under 38-33.3-116 and 38-33.3-119 of CCIOA are not subject to the above disclosure requirements. Also, associations still under declarant control are not subject to the above annual disclosure requirement; however, within 90 days after the owners have assumed control of the association, the association must make such disclosures.