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Millbrook Townhomes

Millbrook Townhomes Millbrook Townhomes Millbrook Townhomes

Signed in as:

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HOA TASK FORCE

 

Jump to the PDF's :

The Official HOA Taskforce Final Report

HOADave's Investigative Report


    

 

About the Taskforce

The Colorado HOA Homeowners' Rights Task Force was established to address the growing concerns and issues faced by homeowners within common interest communities governed by homeowners' associations (HOAs). The formation of the task force was driven by the need to enhance transparency, fairness, and communication between HOA boards and homeowners.


Key Reasons for Formation:

  1. Legislative Mandate: The task force was created as a result of HB23-1105, which was signed into law by Governor Jared Polis. This bill specifically mandated the creation of the HOA Homeowners' Rights Task Force to examine and address various issues affecting homeowners in HOA-governed communities.
  2. Homeowner Complaints: There was a significant number of complaints from homeowners regarding the practices and policies of HOAs. These complaints included concerns about fining authority, foreclosure practices, communication issues, and the accessibility of governing documents and financial information.
  3. Need for Reform: The task force aimed to modernize the Colorado Common Interest Ownership Act (CCIOA) to reflect current challenges and to improve the overall governance of HOAs. The goal was to create efficiencies and cost savings while protecting homeowners' rights.
  4. Alternative Dispute Resolution: There was a recognized need for an affordable and expedited process for resolving conflicts between homeowners and HOAs. The task force was tasked with exploring the creation of an alternative dispute resolution program to help address disputes outside the traditional legal system.
  5. Education and Engagement: The task force recognized the importance of educating homebuyers, homeowners, and real estate professionals about HOAs. Increasing awareness and understanding of HOA processes, rights, and responsibilities was seen as crucial to the health and sustainability of HOA communities.
  6. Regulation of HOA Professionals: To ensure the safety and soundness of HOA communities, there was a call for regulating community association managers and professionals. The task force was to consider licensure and standards for these professionals to ensure they are qualified and competent in their roles.


Task Force Composition:

The task force included a diverse group of stakeholders, such as attorneys specializing in common interest community law, representatives of developers, accredited community association managers, homeowners from various communities, and advocates for HOA homeowners. This broad representation was intended to provide a well-rounded perspective on the issues at hand and to develop comprehensive recommendations.


Goals and Objectives:

The primary objective of the Colorado HOA Homeowners' Rights Task Force was to identify areas for legislative improvements and to develop recommendations for the 2024 legislative session. The task force aimed to enhance the governance and management of HOAs, protect homeowners' rights, and ensure that HOA practices are fair, transparent, and equitable.

By addressing these critical issues, the task force sought to foster a more harmonious relationship between HOA boards and homeowners, ultimately contributing to the betterment of common interest communities in Colorado.



Official HOA Taskforce Final report

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HOA TaskForce - Final report- DORA

Key recomendations:

 


1) Common Interest Community Disclosure:

  • Change CCIOA to require a one-page common interest community disclosure for every home sale in an HOA. This disclosure would inform prospective homeowners of the rights and responsibilities of living in an HOA​​.

2) Notice of Violation:

  • Change CCIOA to require that a notice of violation is sent separately from the monthly statement. This ensures that homeowners are aware of violations even if they use auto-pay for their assessments​​.

3) Reserve Studies:

  • Mandate that every association complete a reserve study, ensuring transparency and accessibility of reserve account information to homeowners. Reserve funds should be set aside for maintenance or replacement of capital assets and not used for operational expenses without a formal repayment plan​​.

4) Alternative Dispute Resolution (ADR):

  • Create an ADR process through which homeowners and HOAs can resolve disputes outside of the legal system, using methods such as mediation, arbitration, or hearings before an Administrative Law Judge (ALJ). This aims to reduce the financial burden on homeowners and increase communication​​.

5) Licensure of Community Association Managers:

  • Consider legislation requiring the licensure of community association managers to ensure accountability and professionalism in HOA management​​.

6) Voter Reform Bill:

  • Increase homeowner participation in budget issues by implementing reforms that provide unit owners with more access to budget information and the opportunity to vote on budget-related matters​​.

7) Fining Authority and Practices:

  • Revise CCIOA to allow for escalating fines for repeat violations and clarify what constitutes a public health and safety issue. Eliminate the requirement to physically post notices of delinquency at the unit owner's property​​.

8) Foreclosure Practices:

  • Require any lender who escrows taxes or insurance to offer an option to escrow HOA fees to ensure timely payment and reduce the risk of foreclosure. Mandate that homes subject to HOA-related foreclosures be sold at market value to protect homeowner equity​​.

9) Communication and Education:

  • Improve communication with HOA homeowners by increasing transparency and providing education on homeowners' rights and responsibilities. Mandate that associations send notices via multiple channels and maintain secure online platforms for document access​​.

10) Records Availability:

  • Ensure the availability and accessibility of HOA governing documents, financial statements, and records of board actions to homeowners. Address issues with responsiveness to records requests and ensure compliance with document retention and production requirements​​.

Disclaimer - The information on this page was generated by CHatGTP - Please read!

 

Disclaimer:

The information provided by HOADave (A ChatGTP created by Dave Hackett) is intended for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy and completeness of the information provided, no guarantee is made regarding its reliability or suitability for any specific situation.

HOADave's responses are based on the contents of the DORA report on HB23-1105 and other available resources. Users are encouraged to consult with a qualified legal professional for advice tailored to their individual circumstances and to verify any information before taking action.

HOADave, its creators, and associated entities are not responsible for any errors or omissions in the information provided or for any actions taken based on this information. Use of the information provided is at your own risk.


HOADave's Investigative Report

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