Most community associations in Colorado are either condominiums or planned developments, with nothing in between (aside from a very small number of co-ops). Despite the various types of developments we have names for, (such as townhomes, condominiums, single family detached homes, patio homes, and mixed-use communities) these developments fall under the category of either “condominiums” or “planned developments”.
The term “condominium” is defined in the Colorado Common Interest Ownership Act (“CCIOA”) as a community in which portions of the real estate are designated for separate individual ownership, and the remainder being designated for common ownership by the owners. In plain English, this means that in condominium communities, the common elements are owned by the unit owners as tenants in common, as opposed to being owned by the associations.
CCIOA further provides, “A common interest community is not a condominium unless the undivided interests in the common elements are vested in the unit owners.” Thus, any community in which the unit owners do not collectively own the common elements, will not constitute a “condominium” under CCIOA.
CCIOA also defines the term “planned community” as a community that is not a condominium community or a cooperative. Additionally, in a planned community, the association owns common element tracts, which are transferred by recorded deeds most often from the developer.
So, why do we care if an association is a condominium community or planned development? Because the analysis of certain statutory provisions, as well as provisions contained in the governing documents, changes in certain instances depending on the type of community at issue. Below are only a few examples of some differences:
| Issue | Condominium | Planned Community |
|---|---|---|
| Satellite Dishes | Associations may prohibit installation of dishes on the roofs because roofs constitute general common elements | Associations may not prohibit owners from installing satellite dishes on roofs because roofs are part of the structure owned by the individual owners |
| Signs | Associations may prohibit installation of signs on the exterior of condominium units (although they must allow display in windows) | Associations may not prohibit display of signs on the residence exteriors in planned developments because the structures are individually owned by the homeowners |
| Declaration requires association to maintain common elements and not the units | Association is responsible for all exterior and structural components of the condominium buildings | Owners are responsible for all structural and exterior maintenance of their residences (even if they are connected to other residences) |
| CCIOA insurance requirements for communities created after July 1, 1992 | Associations are required to insure the individual condominium units, including drywalls and fixtures (but may exclude owner-installed upgrades and finished surfaces) | Associations are not required to insure any portions of the residential exterior, structure, or interior components, unless required to do so by the governing documents |
| Exemptions from CCIOA | May not be exempt from CCIOA | May be exempt under certain circumstances |
Should you have any questions concerning the difference between condominiums and planned developments, please do not hesitate to contact Altitude at [email protected] or at 303.432.9999.