Suppose an owner in your association has requested access (inspection and/or copying) to certain financial records of the association. What are the obligations of the board to provide this information? Can it withhold any information? Can you charge for access? The answers are provided for in Colorado law (both the Colorado Common Interest Ownership ActGo to Resource
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The Colorado Common Interest Ownership Act (“CCIOA”) provides a step-by-step process for budget ratification for communities created after July 1, 1992. Associations created before July 1, 1992, and those that are otherwise exempt from CCIOA, are not required to follow the CCIOA budget ratification process and must follow the budgeting and assessment processes set forthGo to Resource
Board members owe several overarching fiduciary duties: the duty of reasonable care and attention, the duty of loyalty to faithfully pursue the community’s interests, and the duty of obedience to follow the association’s governing documents and policies. To fulfill these duties, a community association board member must exercise appropriate financial stewardship. Responsible fiscal responsibility hasGo to Resource
Luckily, it doesn’t happen often, but we have all heard horror stories about dishonest managers or board members absconding with association money, funded through assessments paid by owners in the community. It is always a devastating situation and it leaves board members asking if there were steps that could have been taken to avoid suchGo to Resource
Bankruptcy … it’s the “four-letter word” that nobody wants to hear. There are two types of bankruptcies that most individuals file. A Chapter 7 bankruptcy (also known as a “liquidation” bankruptcy) will, upon completion, discharge the owner’s debt as of the date of filing. A Chapter 13 bankruptcy (also known as a “wage earner’s” bankruptcy)Go to Resource