You’ve no doubt read the blogs and email blasts concerning the HB 1237, which was recently signed into law by the Governor and takes affect on January 1, 2013. HB 1237 will impact various facets of association record keeping, but have you thought about what your association will need to do to comply with and take advantage of this latest legislation?
Before discussing compliance, it’s important to know what HB 1237 says and how it changes the current law. The goal of this legislation is to clarify the record keeping requirements of associations and owners’ inspection rights through modifications of various provisions in Section 317 of the Colorado Common Interest Ownership Act (CCIOA).
The primary changes with respect to association record keeping requirements and owners’ inspection rights are set forth below:
- In addition to the records associations were already required to keep, records of claims for construction defects and non-confidential settlement amounts received by the association must now be maintained by associations as corporate records and made available to owners for inspection;
- Written communications by board members and votes cast continue to be viewed as association records, but only to the extent that such communications are directly related to a board action outside of a meeting in accordance with the Nonprofit Act or directly related to an action without a meeting pursuant to the association’s bylaws. This implies that other written communications between board members that do not pertain to these issues are not viewed as association records that are open to inspection by owners.
- In addition to the physical mailing address and names of board members, associations must now also keep record of the directors’ and officers’ email addresses and make such addresses available to any owners who request such information;
- HB 1237 further clarifies that in addition to current contracts of the association, contracts for work performed in the preceding two years must also be retained by associations as records; and
- Associations may now withhold architectural drawings, plans, and designs from discloser to owners unless the owner of such drawings, plans, and designs provides written consent for disclosure.
For a full review of documents associations are required to keep in addition to the above documents, click here.
Now that you know what’s different, the next logical question is what does my association need to do to comply with this new law? The most important step is to update your Records Inspection Policy to incorporate and take advantage of the above changes.
Records Inspections Policies were made mandatory by our old friend, SB 100 back in 2005. However, with this additional legislation pertaining to association records, now is a perfect time to update your policy and more clearly define what documents will be open to inspection and what documents will not.
For more information on HB 1237 and the steps associations can take to ensure compliance with this legislation, please contact a Altitude Community Law attorney at 303.432.9999.