With all of the action surrounding the HOA Information Office Sunset Bill, the introduction of HB 20-1333 occurred without much fanfare. HB 20-1333, sponsored by Rep. Titone (D) takes HOA transparency issues, either imaginary or real, directly in its sights.
The bill attempts to make homeowners associations more transparent by requiring all associations to do the following:
- Uploading the governing documents on a website run by the association. This provision requires all associations, regardless of size, to maintain a website.
- Supplying the governing documents, including all amendments thereto, to the HOA Information Center for publication on a state operated website. This requirement includes the publication of all fees chargeable upon the sale of a home in the community to the buyer or seller. This is in addition to recording the declaration and amendments with the clerk and recorder’s office, thus making the publication of governing documents in no less than three places online.
- Posting on an internet website, with the web address communicated annually to all unit owners, the contact information for the HOA and its management company. This is an expansion of the requirements already in CCIOA.
- Allowing owners to record, at their cost and expense, all board or member meetings.
- Allowing owners, at their expense, to invite independent election monitors to ensure the election process is fair.
- Prohibits the use of secret ballots in association votes unless requested by 20% of the members at the meeting. This excludes use of secret ballot for contested elections. The issue with this provision is that open votes can be used to intimidate those owners voting.
- Creates a presumption of damages in the amount of $50.00 per day if the association fails to comply with a records request within 30 days.
- Requires mandatory board member education.
- Requires professionally conducted reserve studies, which studies must be updated at least every five years, and the Association shall provide for adequate reserves, which funding shall be reviewed annually.
- Requires association financial records to be audited at least annually.
- Requires specific deadlines for transition from developer control.
- Requires sellers to certify to a buyer of a unit the accuracy of information provided and creates a cause of action (reason to sue) the seller if the information is not accurate.
This is the second major association related bill introduced this session and the third bill that will have major implications on homeowners associations. This bill, as it requires professional reserve studies and audits to be performed, and adequate funding of reserve accounts, will most definitely have an impact on association budgets. Stay tuned here for the latest on this and all other association related matters.
6 responses to “The Second Major CCIOA Bill introduced…And it is equally as impactful”
Some of these are stupid. I have a HOA with 4 condos and one with 14 that neither can afford to maintain a website. The docs are all posted on our county website and available from me upon request.
We live in a small community in So. Colorado and t his needs to be taken into consideration as I’m sure I’m not the only manager concerned with this. A lot of these provisions are going to cost the Associations a lot of money they can’t afford.
I love these new CCIOA bills!
I can’t tell if this is related to the First CCIOAS Bill or the 2nd Major Bill. The links all lead to the above info. So is this a summary of both? the first? or the second?
Please send me a link to the second bill .
Hello Mr. Wakerly. This post is discussing the second major bill, HB20-1333, and links to the following: https://leg.colorado.gov/bills/hb20-1333. The first major bill, HB20-1200 , in our prior blog post of 1/31/20, links to: https://leg.colorado.gov/sites/default/files/documents/2020A/bills/2020a_1200_01.pdf. Please let us know if you need anything else.
We are also a small HOA with most of our members on fixed incomes. Finances have not been a problem and communication takes place around our mailboxes, neighborhood parties. The HOA cannot afford a website, we have a difficult time getting the owners to obtain email addresses!
This will require a financial burden on small HOA,s as well as those that have numerous parties that do not use a computer.