Colorado HOA Forum HOA HOMEOWNER ADVOCATES
MISSION, PRIORITIES, PROPOSALS
OUR MISSION
IMPROVE HOA GOVERNANCE THROUGH LEGISLATIVE REFORM****
EDUCATE THE PUBLIC, LEGISLATORS, MEDIA OUTLETS, CURRENT HOA HOMEOWNERS AND HOA HOME BUYERS ON ON HOA
ISSUES
ADVOCATE FOR HOMEOWNER'S RIGHTS AND THE RIGHTS OF HOAs TO ENFORCE GOVERNING DOCUMENTS
PROVIDE ASSISTANCE AND GUIDANCE TO HOMEOWNERS WITH THEIR HOA ISSUES, CONCERNS AND QUESTIONS
****We identify issues for legislative reform, solutions and content required to complete such reform BUT WE DON'T
WRITE LEGISLATIVE BILLS
We do not provide legal advice nor should we be used as a substitute for legal representation in and out of court.
There are no lawyers on our staff nor do we have any affiliation with any legal firm or private business.
We do not accept financial contributions, all work is voluntary,
---------------------------------------------------------------------------
Legislative initiatives and governance policies promoted by the Colorado HOA Forum will not:
Use taxpayer dollars: funding comes from HOA homeowners through registration fees
Materially impose any net cost on HOAs and their home owners or on HOA property management companies
Negatively influence home owners from volunteering or increase their legal responsibilities
Conduct personal attacks on any Board member, legislator, mangement company or HOA
Preclude the ability of an HOA to govern the community
----------
Our Priorities and Proposals and HOA Reform issues:
#1 Implement an out of court binding dispute resolution process within the State HOA Office to resolve homeowner complaints with their HOA Board concering violations of State HOA law and/or HOA governing documents. This is to be funded through HOA registratin fees of $2.00 - 3.00 per year per homeowner. Our proposal Flow chart Learn about dispute resolution HOA Foreclsoure Reform: end the practice of allowing the sale of HOA foreclosed homes for pennies on the dollar and the related super lien that encourages this; limit attorney fees on collection and foreclosure actions; end the practice of HOA's depending on fines and fees for revenue; and provide for an affordable out of court dispute resolution process for hommeowners to contest all actions leading up to foreclosure. Our Proposal . State HOA data base: Require the HOA Registration process to include a requirement that each HOA download HOA official documentation into a State HOA data base: Spcifically but not limited to documentation required by DORA in the Contract to Buy and Sell Real Estate. Access to this non-personal, non-proprietary or confidential information is at no cost to the user and all such documentation will be considered current and correct and confirmed as such through the HOA registration process. Funding to create and maintain the data base will be through HOA registration fees and be no more than $.50 a year per home. Improve the HOA Registration process to collect and publish for each HOA on the State HOA Office web site: information as required under CCIOA: each HOA's property management company with the address, telephone number and email address; a certification that all Board members read their own HOA governing documents; confirmation of the last update to the State HOA Office data base and affirmation that the Office has received the most correct and current information; have transmitted to the Office copies of all official documents required by DORA to be provided home buyers as defined in the Contract to Buy and Sell Real Estate; and other information to be determined including insurance needs, Metro District debt and repayment, maintenance responsibilities, billing and collection process for homeowner debt. A confirmation that the signature authorities on HOA bank and other deposits. has been reviewed and confirmed. Revive the HOA property manager (PM) licensing program that was vetoed in 2019. Improve upon the previous program: require PMs to provide detailed receipts/invoices to home owners they bill and a statement on invoice and in contracts with HOAs indicating that such billing represents work not reimbursed to them with their contract with the HOA and such charges are unique and extraordinary, including billings for HOA Home Sale Transfer Fees, and not previously paid for with HOA monthly assessments. No charges will be made to a homeowner for providing documentation in the home selling process. All charges by the HOA property management company to the HOA or home owner/seller involvng special work requests or work outside that required under State law must be approved by the HOA Board.; this program would indicate that any PM involve in, aware of or advising in HOA management be held accountable for penalties under this program and can't defend its' actions by indicating they are only doing what the HOA Board has agreed to or directed them to do; PM's are required to comply with all State HOA laws and an HOA's governing documents; PM's will disclose all financial relationships or businesses and failure to do so will result in a $5,000 fine. This includes any partnership, employ or business interests used by the PM or HOA or any financial or other interest between the PM and legal resources.; PMs will utilize financial institutions chartered in Colorado and all such bank accounts and funds of an HOA with deposited in a Colorado institution. Other changes as needed. State Sunrise Report supporting this proposition. HOA Home Sale Transfer Fee and Status Letter Reform: fee must be supported by a detailed invoice to the payee (home seller) including what work was done to justify the fee, when completed and detailed line item cost and limits charges to the home seller to unique and extraordinary expenses incurred by the HOA property management company in the sale of a home. No charges, other than mailing, delivery or special handling requests, to a home seller for providing any documentation or process required under the Contract to Buy and Sell Real Estate. HOAs will maintain only one, official, up-to-date and current data base or filing system of documentation. Any statement issued to a homeowner, home buyer or other authorized person or entity will be indicate the date prepared, date the information was last updated and a statement that the information is the most current and complete as of the date prepared. Status Letter: This document is provided to the home seller during the home closing process and represents the home seller's financial status and debt to the HOA and other information such as: if assessments are paid up-to-date, any outstanding special assessments, any outstanding covenant violations, Metro District financial debt and planned or estimated impact on property taxes and other items, special assessments being paid by the homeowner; any outstanding legal assessments and the payment plan. The Status Letter can be requested by the home owner or home buyer or an authorized home buying agent at no cost, other than mailing, delivery or special handling requests, at any time. Title Company documentation: Upon request of the home seller or their authorized buying agent, documentation will be provided to the Title Company during the home selling process at no charge other than mailing, delivery or special handling requests. All unique and extraordinary expenses incurred by the HOA and/or its management compaany will be payable by the home seller prior to or part of home closing. Such charges will be approved and documented by the HOA or home seller, be accompanied by a detailed invoice and such invoice indicating that the charges to the home seller are for unreimbursed costs incurred by the PM or HOA that have not been previously paid for through HOA assessments.
Require a home buyer and their agent/Realtor to certify they received, read and understand the HOA governing documents and other information required on the Contract to Buy and Sell Real Estate prior to home closing
Require licensing of time share property managers under any HOA property manager licensing law Require time-share properties to disclose and provide information equal to that of non-time share properties at home closing and on any other day of the year including the governing documents and home owner account statements
Term limits on HOA Board members when others are willing to serve. A term limit is defined as being elected twice or more consecutively. A homeowner can run for the Board after being out of office for one electon cycle.
Special assessments above a certain amount to be determined requires a homeowner vote similar to that conducted when electing Board members and not be conducted at or during a community meeting. The amount of special assessment required to be voted upon will be related to the income of the HOA and/or size (number of units in the HOA0. Preclude HOAs from entering into any non-routine litigation without homeowner approval. Routine litigation includes legal costs on collections and other debt and representing the HOA in court concerning enforcement of covenants.
Require HOA rental property owners to utilize part of every rent payment to pay HOA dues. Tenants will not be responsible for any debt assigned to a property. Preclude the practice of an HOA that relies upon fines and fees to fund operational cost. HOA assessments An HOA can't assign to any outside entity control over HOA assessments and all HOA assessments obligated upon the home owner in the Declaration will be paid to and accounted for by the HOA and deposited in HOA financial accounts. If the HOA, upon homeowner vote requiring 67% approval, transfers community assets and/or property and monthly assessment income to an outside entity to own and maintain, the HOA must: retain assessment income to fund any responsibilities of the HOA such as covenant enforcement, communication and information within the HOA, repair and replacement of any remaining community assets, funding required to support Board activities and community events, to fund a reserve fund of the remaining community assets and other operational costs. A yearly audit of the expenses incurred by the entity receiving HOA assets vs amount received in HOA assessments/income will be completed by the HOA.
Election and voting reform including banning default proxies to Boards, hoarding proxy ballots and preclude Board members from being involved in the receipt of any proxy. Allow for on-line voting and/or ballot drop boxes.
Disclosure of Metro District debt on property as part of home closing process including total amount of debt inherited by the home buyer, the plan for repayment including an estimate of when repayment begins and impact on property taxes.
Prohibit the use of non-disclosure agreements for Board members that preclude Board members from discussing non-confidential information with fellow home owners and Board members outside of an official Board meeting. HOA foreclosure reform to limit the amount of add-on and legal charges on home owner ; improve homeowner notification process throughout the debt collection process; and end the HOA super lien and the practice that allows for the sale of foreclosed home at a home sale auction for less then 75% of their market value. . HOA Insurance: 1) Require HOAs to complete a presentation each year on the topic of insurance. Inform homeowners of the financial responsibilitie in the event of a disaster, explain how the HOA can/must pay its deductible in the event of a a major repair or replacement of community property, explain how the HOA's insurance policy deductible was determined, review the recommended homeowner's insurance policy for residence such as an HO-6 policy and explain the option to obtain loss assessment insurance that can mitigate a homeowner's out-of-pocket expense with an insurance special assessment to cover a HOA deductible on the community master insurance policy and 2) include as part of the HOA registration process a confirmation that this process has been completed and 3) require as part of the home closing process that home buyers be provided with the above information. Proxy Voting and Defaulting ballots to any Board member: preclude proxy hoading and Board members from participating in the proxy process (Board members can't be assigned proxy votes). Preclude the practice of defaulting ballots that have irregularities or are incomplete to anyone including Board members. Easements: more open disclosure of easements during the home closing process and clarifying the HOA's authority to impose easements. Information disclosure to home buyers is incomplete and inadequate to make an informed buying decision. Expand upon the Contract to Buy and Sell Real Estate documentation requirements HOA Budget Approval/Rejection: make it simple, use Vote by Mail. (VBM) or similar process used to elect Board members, to approve changes in the Declaration and for approving construction defects law suits. HOA Bank Accounts: HOA checking accounts, reserve fund accounts and other cash on hand or other liequid assets includng funds from insurance settlements will be deposited in a financial institution conducting business in Colorado, registered as a financial institution in Colorado and be state-chartered commericial bank. HOA funds to be deposited and retained in such Colorado financial institutions.
Check writing, money transfers and funds withdrawal: All checks, money transfers and funds withdrawals from HOA accounts will require at least one Board member's authorized signature or other means of Board member documented approval. Any withdrawal of HOA funds over $5,000 will require a majority approval of the Board. Banks cashing HOA checks or processing withdrawals without the proper Board approval will be subject to a fine of up to $5,000 per withdrawal. No management company hired by the Board can independently authorize other than minor expenses definded as $500 or less. Bank check registers and statements indicating the payee on funds withdrawal will be posted on the HOA's web site and/or available to a homeowner upon request at no cost. Supporting documentation on funds withdrawal will be available to homeowners upon request at no cost. As part of the HOA registration process will be a confirmation that the authorized parties related to HOA banking/financial institution accounts have been confirmed and are in compliance with this aforementioned mandate. Assessment due date: HOA's will to provide a hearing to a homeowner in response to their request to change the due date for payment of an assessment that is based on a hardship situation. This change is not related to a one-time payment but permanently changing the recurring due date. Any change will not be subject to to a late fee charge or any other administrative charge based on the previous due date. re in home closing, Expand HOA Registration information
#1 Implement an out of court binding dispute resolution process within the State HOA Office to resolve homeowner complaints with their HOA Board concering violations of State HOA law and/or HOA governing documents. This is to be funded through HOA registratin fees of $2.00 - 3.00 per year per homeowner. Our proposal Flow chart Learn about dispute resolution HOA Foreclsoure Reform: end the practice of allowing the sale of HOA foreclosed homes for pennies on the dollar and the related super lien that encourages this; limit attorney fees on collection and foreclosure actions; end the practice of HOA's depending on fines and fees for revenue; and provide for an affordable out of court dispute resolution process for hommeowners to contest all actions leading up to foreclosure. Our Proposal . State HOA data base: Require the HOA Registration process to include a requirement that each HOA download HOA official documentation into a State HOA data base: Spcifically but not limited to documentation required by DORA in the Contract to Buy and Sell Real Estate. Access to this non-personal, non-proprietary or confidential information is at no cost to the user and all such documentation will be considered current and correct and confirmed as such through the HOA registration process. Funding to create and maintain the data base will be through HOA registration fees and be no more than $.50 a year per home. Improve the HOA Registration process to collect and publish for each HOA on the State HOA Office web site: information as required under CCIOA: each HOA's property management company with the address, telephone number and email address; a certification that all Board members read their own HOA governing documents; confirmation of the last update to the State HOA Office data base and affirmation that the Office has received the most correct and current information; have transmitted to the Office copies of all official documents required by DORA to be provided home buyers as defined in the Contract to Buy and Sell Real Estate; and other information to be determined including insurance needs, Metro District debt and repayment, maintenance responsibilities, billing and collection process for homeowner debt. A confirmation that the signature authorities on HOA bank and other deposits. has been reviewed and confirmed. Revive the HOA property manager (PM) licensing program that was vetoed in 2019. Improve upon the previous program: require PMs to provide detailed receipts/invoices to home owners they bill and a statement on invoice and in contracts with HOAs indicating that such billing represents work not reimbursed to them with their contract with the HOA and such charges are unique and extraordinary, including billings for HOA Home Sale Transfer Fees, and not previously paid for with HOA monthly assessments. No charges will be made to a homeowner for providing documentation in the home selling process. All charges by the HOA property management company to the HOA or home owner/seller involvng special work requests or work outside that required under State law must be approved by the HOA Board.; this program would indicate that any PM involve in, aware of or advising in HOA management be held accountable for penalties under this program and can't defend its' actions by indicating they are only doing what the HOA Board has agreed to or directed them to do; PM's are required to comply with all State HOA laws and an HOA's governing documents; PM's will disclose all financial relationships or businesses and failure to do so will result in a $5,000 fine. This includes any partnership, employ or business interests used by the PM or HOA or any financial or other interest between the PM and legal resources.; PMs will utilize financial institutions chartered in Colorado and all such bank accounts and funds of an HOA with deposited in a Colorado institution. Other changes as needed. State Sunrise Report supporting this proposition. HOA Home Sale Transfer Fee and Status Letter Reform: fee must be supported by a detailed invoice to the payee (home seller) including what work was done to justify the fee, when completed and detailed line item cost and limits charges to the home seller to unique and extraordinary expenses incurred by the HOA property management company in the sale of a home. No charges, other than mailing, delivery or special handling requests, to a home seller for providing any documentation or process required under the Contract to Buy and Sell Real Estate. HOAs will maintain only one, official, up-to-date and current data base or filing system of documentation. Any statement issued to a homeowner, home buyer or other authorized person or entity will be indicate the date prepared, date the information was last updated and a statement that the information is the most current and complete as of the date prepared. Status Letter: This document is provided to the home seller during the home closing process and represents the home seller's financial status and debt to the HOA and other information such as: if assessments are paid up-to-date, any outstanding special assessments, any outstanding covenant violations, Metro District financial debt and planned or estimated impact on property taxes and other items, special assessments being paid by the homeowner; any outstanding legal assessments and the payment plan. The Status Letter can be requested by the home owner or home buyer or an authorized home buying agent at no cost, other than mailing, delivery or special handling requests, at any time. Title Company documentation: Upon request of the home seller or their authorized buying agent, documentation will be provided to the Title Company during the home selling process at no charge other than mailing, delivery or special handling requests. All unique and extraordinary expenses incurred by the HOA and/or its management compaany will be payable by the home seller prior to or part of home closing. Such charges will be approved and documented by the HOA or home seller, be accompanied by a detailed invoice and such invoice indicating that the charges to the home seller are for unreimbursed costs incurred by the PM or HOA that have not been previously paid for through HOA assessments.
Require a home buyer and their agent/Realtor to certify they received, read and understand the HOA governing documents and other information required on the Contract to Buy and Sell Real Estate prior to home closing
Require licensing of time share property managers under any HOA property manager licensing law Require time-share properties to disclose and provide information equal to that of non-time share properties at home closing and on any other day of the year including the governing documents and home owner account statements
Term limits on HOA Board members when others are willing to serve. A term limit is defined as being elected twice or more consecutively. A homeowner can run for the Board after being out of office for one electon cycle.
Special assessments above a certain amount to be determined requires a homeowner vote similar to that conducted when electing Board members and not be conducted at or during a community meeting. The amount of special assessment required to be voted upon will be related to the income of the HOA and/or size (number of units in the HOA0. Preclude HOAs from entering into any non-routine litigation without homeowner approval. Routine litigation includes legal costs on collections and other debt and representing the HOA in court concerning enforcement of covenants.
Require HOA rental property owners to utilize part of every rent payment to pay HOA dues. Tenants will not be responsible for any debt assigned to a property. Preclude the practice of an HOA that relies upon fines and fees to fund operational cost. HOA assessments An HOA can't assign to any outside entity control over HOA assessments and all HOA assessments obligated upon the home owner in the Declaration will be paid to and accounted for by the HOA and deposited in HOA financial accounts. If the HOA, upon homeowner vote requiring 67% approval, transfers community assets and/or property and monthly assessment income to an outside entity to own and maintain, the HOA must: retain assessment income to fund any responsibilities of the HOA such as covenant enforcement, communication and information within the HOA, repair and replacement of any remaining community assets, funding required to support Board activities and community events, to fund a reserve fund of the remaining community assets and other operational costs. A yearly audit of the expenses incurred by the entity receiving HOA assets vs amount received in HOA assessments/income will be completed by the HOA.
Election and voting reform including banning default proxies to Boards, hoarding proxy ballots and preclude Board members from being involved in the receipt of any proxy. Allow for on-line voting and/or ballot drop boxes.
Disclosure of Metro District debt on property as part of home closing process including total amount of debt inherited by the home buyer, the plan for repayment including an estimate of when repayment begins and impact on property taxes.
Prohibit the use of non-disclosure agreements for Board members that preclude Board members from discussing non-confidential information with fellow home owners and Board members outside of an official Board meeting. HOA foreclosure reform to limit the amount of add-on and legal charges on home owner ; improve homeowner notification process throughout the debt collection process; and end the HOA super lien and the practice that allows for the sale of foreclosed home at a home sale auction for less then 75% of their market value. . HOA Insurance: 1) Require HOAs to complete a presentation each year on the topic of insurance. Inform homeowners of the financial responsibilitie in the event of a disaster, explain how the HOA can/must pay its deductible in the event of a a major repair or replacement of community property, explain how the HOA's insurance policy deductible was determined, review the recommended homeowner's insurance policy for residence such as an HO-6 policy and explain the option to obtain loss assessment insurance that can mitigate a homeowner's out-of-pocket expense with an insurance special assessment to cover a HOA deductible on the community master insurance policy and 2) include as part of the HOA registration process a confirmation that this process has been completed and 3) require as part of the home closing process that home buyers be provided with the above information. Proxy Voting and Defaulting ballots to any Board member: preclude proxy hoading and Board members from participating in the proxy process (Board members can't be assigned proxy votes). Preclude the practice of defaulting ballots that have irregularities or are incomplete to anyone including Board members. Easements: more open disclosure of easements during the home closing process and clarifying the HOA's authority to impose easements. Information disclosure to home buyers is incomplete and inadequate to make an informed buying decision. Expand upon the Contract to Buy and Sell Real Estate documentation requirements HOA Budget Approval/Rejection: make it simple, use Vote by Mail. (VBM) or similar process used to elect Board members, to approve changes in the Declaration and for approving construction defects law suits. HOA Bank Accounts: HOA checking accounts, reserve fund accounts and other cash on hand or other liequid assets includng funds from insurance settlements will be deposited in a financial institution conducting business in Colorado, registered as a financial institution in Colorado and be state-chartered commericial bank. HOA funds to be deposited and retained in such Colorado financial institutions.
Check writing, money transfers and funds withdrawal: All checks, money transfers and funds withdrawals from HOA accounts will require at least one Board member's authorized signature or other means of Board member documented approval. Any withdrawal of HOA funds over $5,000 will require a majority approval of the Board. Banks cashing HOA checks or processing withdrawals without the proper Board approval will be subject to a fine of up to $5,000 per withdrawal. No management company hired by the Board can independently authorize other than minor expenses definded as $500 or less. Bank check registers and statements indicating the payee on funds withdrawal will be posted on the HOA's web site and/or available to a homeowner upon request at no cost. Supporting documentation on funds withdrawal will be available to homeowners upon request at no cost. As part of the HOA registration process will be a confirmation that the authorized parties related to HOA banking/financial institution accounts have been confirmed and are in compliance with this aforementioned mandate. Assessment due date: HOA's will to provide a hearing to a homeowner in response to their request to change the due date for payment of an assessment that is based on a hardship situation. This change is not related to a one-time payment but permanently changing the recurring due date. Any change will not be subject to to a late fee charge or any other administrative charge based on the previous due date. re in home closing, Expand HOA Registration information
The Colorado HOA Forum should not be used as a guide or source for legal advice or a substitution for gaining legal advice on pursuing litigation.