Natural disasters typically announce their arrival by uprooting trees, roaring tornados, or blazing wildfires wiping out entire landscaped communities. Geophysical, hydrological, meteorological, and climatological factors all create severe disruptions to the functioning of communities and exceed their capacity to cope with them using their own resources. Climatological disasters are becoming a much more standard part […]
Devastation in our Backyard: A look at insurance and what we can learn from the Marshall Fire (CO)
Growing up in Louisville, Colorado, I like many others, could have never imagined the scene that unfolded on December 30, 2021. Early in the day a staff member mentioned a small brushfire had started in Boulder. Miles away we went on with our day only to see what looked like dust in the air around […]
Does My HOA Really Need Directors and Officers Insurance?
Inflation is noticeable everywhere today and HOAs are not immune to the pressures caused by higher relative costs. One common remedy to these pressures is cutting costs and one area where it is always tempting to do so is in insurance premiums. However, skimping on insurance coverage now can generate significant costs down the road. […]
Why Every Community Associations Needs a Workers Comp Policy (CO)
Even though all Community Associations should only hire licensed insured contractors, we know this does not always happen. By hiring uninsured venders or contractors the Management Company and the Association can be held liable for workers comp claims submitted by their vendors. Read the entire article……………………………….
No More HOA Restrictions on Public Streets (CO)
Are there public streets running through your community? If so, does your association currently have rules or covenants governing parking or other activities on such streets? Moving forward, such rules and/or covenants may not be enforced by associations as a result of added language to the Colorado Common Interest Ownership Act (“CCIOA”). Read the entire […]
Preventative Maintenance for Water Management (CO)
Preventative maintenance for water management around commercial and residential buildings is commonly overlooked unless an active leak is occurring from a roof or from a lower level basement area. Active water intrusion issues are primarily due to the lack of preventative maintenance on the exterior of the building. These overlooked conditions typically exist at the […]
Maintenance Now, or Disaster Later?
Many homeowners association boards shy away from addressing day-to-day maintenance needs and may be unwilling to spend assessment funds for preventative maintenance. That apprehension is often motivated by a genuine desire to keep HOA dues low or simply due to indecision from a good faith desire to make only the right decisions. Whatever the motivation, […]
When Should You Contact an Engineer?
When it comes to the reconstruction and restoration of HOA communities, the civil and structural engineers who make up a part of this niche market are accustomed to working behind the scenes. After all, there’s nothing high-profile and flashy about designing repair plans, pulling permits, or writing up engineering reports about potential issues within a […]
House Bill 1040: Closures Notifications and More (CO)
The Governor signed House Bill 1040 into law last week, enshrining into law the obligation for community associations to provide notice to community members should it need to restrict access to common elements for more than seventy-two hours. While this is an appropriate, fair, and laudable goal, many other provisions of House Bill 1040 create […]
Help! We Have a Homeowner Not Paying Assessements. What Do We Do? (CO)
At some point, most boards will experience a homeowner not paying assessments. Sometimes it’s just one, and sometimes it’s several homeowners, but regardless, this can be an uncomfortable situation for the board. Even though the delinquent homeowners are your neighbors, making sure that all homeowners pay their assessments and taking action when they don’t is […]
Mandatory Information on HOA Delinquency Notices (CO)
As managers and board of directors know, associations are required to follow the collection policy for each association. The association’s collection policy is the document that outlines the process for how collections are handled. Each policy will outline how many Notices are sent prior to an owner’s account being turned over to legal counsel. […]
Shhhhhh. . . Don’t Tell Anyone—Do Your Director Communications Violate the Law? (CO)
Let’s face it, being a board member is no easy task, especially if there is discord among directors on the board. When there is distrust among directors, communication becomes funnelled, selective, and exclusionary. But is this type of communication really in the best interests of the community? And even more so, is it legal? Oftentimes, […]
Smile, You’re on Candid Camera! Camera Considerations for Community Associations (CO)
Let’s face it, being a board member is no easy task, especially if there is discord among directors on the board. When there is distrust among directors, communication becomes funnelled, selective, and exclusionary. But is this type of communication really in the best interests of the community? And even more so, is it legal? Oftentimes, […]
Why Colorado HOA laws are ineffective and will stay that way for now
If you read every Colorado State HOA law passed over the past three decades you would easily miss one important element that makes most HOA laws ineffective from the homeowner’s perspective: enforcement. The only viable, workable, accessible venue for dispute resolution between a homeowner and an HOA or property management company remains our court system. […]
And the HOA Bills Keep Coming (CO)
Two more bills have been introduced aimed at addressing owner concerns with Common Interest Communities. Read the entire article……………………………….
HOA 2022 Legislative Proposals: same flaws & cart before the horse (CO)
Here we go again with HOA legislative efforts that continue to miss the target on why all HOA State laws and HOA governing documents are mostly ineffective from the homeowner’s perspective: not one contains any means of enforcement. In addition, the multibillion-dollar HOA industry in Colorado is totally unregulated/has no oversight and those in the […]
Secret Mail Ballots—How Do They Work and Do You Need A Proxy (CO)
In a world of COVID-19, virtual meetings, and tensions still running high in many associations, members are more eager than ever to participate in the democratic process of the association. With the increased desire of members to participate, and in conjunction with virtual meetings, comes the inevitable questions of how do proxies work, when are […]
Top 5 Things Board Members Should NOT Do in 2022 (CO)
It used to be that I would periodically field questions on financial problems due to inadequate reserves. Today, I am constantly preparing special assessment letters, reviewing loan documents, drafting reserve study policies, and generally advising on all questions related to associations experiencing financial crisis. Why? Because board members don’t have a reserve fund or have […]
Fiduciary Duties Of HOA Board Directors
When a person is elected to be an HOA Board Director (“Board Director”), such person is likely aware that they will be acting as a volunteer to lead the Association as part of a Board of Directors group. What they may not consider is that they are taking on fiduciary duties, which many times are […]
HOAs vs. Signs: Why is declaring your love for BLM or ALM a problem in your community? (CO)
You have just bought a new home. You’ve moved in your furniture, changed your address on all the accounts you hold, and are starting to settle in. One of the things you want to do to make the place really feel like yours is hang that rainbow flag or hammer a sign into the yard […]
Collecting HOA Assessments After Disaster – A Closer Look (CO)
The recent Marshall fire that ravaged Boulder County destroyed nearly 1,000 homes. In the face of the most destructive fire in Colorado history, many of those affected are now dealing with what to do in the aftermath. Rebuilding their homes (and their lives after loss) takes a community. Read the entire article……………………………….
The Business Judgment Rule (CO)
The Colorado Court of Appeals recently issued a decision confirming that a board of directors that reasonably interprets a validly adopted rule or regulation of the association is protected from liability. The crux of the decision is this: Read the entire article……………………………….
Amending to Take Advantage of the Law (CO)
Did you know that Colorado law provides associations, directors, and officers with certain rights and protections that may only be utilized if appropriate verbiage is contained in the governing documents? Below are four examples of such rights and protections that must be contained in an association’s governing documents for an association, its directors, and/or officers […]
2022 May Add Up to Trouble for Condominiums (CO)
With the turning of the calendar from 2021 to 2022 new Fannie Mae lending guidelines become effective on January 1, 2022. One of the new lending guidelines includes a prohibition on the purchase of loans in communities with significant deferred maintenance or unsafe conditions. These new guidelines are a direct result of the Surfside tragedy […]
What to Do About Electric Vehicle Charging Station Requests? (CO)
As people look for more ways to save money or reduce emissions or follow the latest trend, the demand for electric vehicles will surely continue to rise. And what does that mean for community associations? More requests for EV Charging Stations. Read the entire article……………………………….
Interpreting a Reserve Study
Every homeowners association should have a current reserve analysis to coincide with its annual operating budget. Following a (reserve) funding plan is crucial to preventing the three things reserve specialists don’t like to see: a special assessment, deferred maintenance, or a sharp increase in reserve contributions. Interpreting a reserve analysis can be a daunting task, […]
How Accurate is a Reserve Study?
After you are done ringing in the New Year, you are starting to get back into the swing of things and you plan on reaching out to vendors to ask for preliminary bids. You notice that the preliminary asphalt seal coat bid is projected to be around $20,000, but your Reserve Study shows a $15,000 […]
Plan for the Worst, Hope for the Best – The Proactive Policy Approach (CO)
Is it better to wait until problems occur or to address issues ahead of time to prevent those problems from arising? This is a concept that community associations around the country, not just in Colorado, struggle with on a daily basis. Basically, the community version of the chicken versus the egg scenario – if we […]
Should Your Association Go Hardcore with Violations or Bring More of a Sense of Community? Maybe There is a Blend That Could Work? (CO)
In most associations, it seems that doing that weekly drive to find those owners in non-compliance is the rage lately or has it been for some time now? Do you find that this brings a sense of community to those living in your association when they get this violation letter in the mail? I have […]
Foreclosures—Why Do They Take So Long? (CO)
Foreclosure is generally a last resort to collect delinquent balances, and boards understandably have many questions about the process. The purpose of this article is to explain and answer questions about why foreclosures take a long time to complete. Read the entire article……………………………….
Ho Ho Ho!! Are Your Rules Ready for the Holidays? (CO)
With the holidays quickly approaching, it’s time for pumpkins, reindeer, snowmen, and other types of holiday décor to be displayed in communities! But is your community ready for all the décor and are your rules adequate to control it? Read the entire article……………………………….
HOA Sign/Flag Restrictions mostly a thing of the past (CO)
SIGNED INTO LAW: HB 21-1310, HOA Flag Bill. The act attempts to simplify and broaden HOA (homeowners association) homeowners’ rights concerning the display of any noncommercial flags or signs. It allows flag/sign displays at any time with any message, subject only to reasonable, content-neutral limitations such as the number, size, or placement of the flags […]
Communication, Communication, Communication (CO)
One of the most common situations occurring after a collection account has been turned over to the attorney’s office is the pertinent owner contacting the management company or a board member immediately after receiving the initial demand letter from the attorney. Of course, the association does not want to turn the owner away, but the […]
A Registered Agent Does What? (CO)
It’s so easy to update the registered agent with the Secretary of State, and many associations do it on a dime. But are you aware of what the registered agent does? The registered agent is the individual or business responsible for accepting service of process for an entity, which means it accepts service of a […]
Preventative Maintenance – Board Member Perspective (CO)
We all know it’s not so fun to spend money on those pesky community projects that don’t have a big wow-factor. The pretty projects are fun, but predictive maintenance is often the most valuable. It can be much less stressful for leadership to avoid maintenance topics that create tension among your community members. It might […]
Changing of the Guard: How a New Generation of Homeowners is Rewriting the Community Playbook (CO)
First-time homeownership surged after COVID-19, fueled by pent-up demand and historically low mortgage rates. Many of these homeowners are young and will own homes for decades. Their loyalty is enormously valuable to management companies, but it won’t come easy. Young consumers are tech-savvy, independent, and impatient. Read the entire article……………………………….
Avoiding Disaster: Strategies to Limit Liability Risk in the Wake of the Surfside Condominium Collapse (CO)
In the wake of the Surfside condominium catastrophe, many communities are grappling with how to address risks associated with aging and deteriorating infrastructure. Among the many lessons learned, the importance of deliberate and long-term financial planning and the avoidance of deferred maintenance may be one of the most paramount. Read the entire article……………………………….
Aging Infrastructure and Fiduciary Duties for Communities (CO)
Our communities are like our bodies; all the stress alleviation endeavors in the world won’t help us if we aren’t taking care of ourselves or our communities. Reflection or Meditation will not do us any good if we aren’t getting sufficient sleep. When we try to reflect or meditate, we might doze off because we […]
Has your Association adopted policies to comply with the new legislation? (CO)
As you likely have heard, new legislation is in effect as of September 7, 2021 affecting common interest communities. If your association has not drafted polices addressing the new legislation, you should contact your legal counsel immediately to ensure that your association’s policies are properly enacted or updated. Here is a summary of the new […]
Current Versions of Legally Required HOA Policies (CO)
Does Your HOA have Current Versions of Legally Required Policies? As you likely know, the Colorado Common Interest Ownership Act (“CCIOA”) requires that all HOAs adopt specific policies (C.R.S. § 38-33.3-209.5). Furthermore, the Colorado legislature also enacted a statute requiring many companies to adopt a policy regarding the storage and protection of homeowners’ personal identifying […]
Court Ruling in Colorado Protects Community Association Covenants, Codes, and Restrictions
The Colorado Court of Appeals on Aug. 12 determined that a town of Vail ordinance requiring condominium units to “remain in the short-term rental market” was, on its face, discriminatory and violated the Colorado Common Interest Ownership Act (CCIOA), and a condominium association was not obligated to enforce the law. Read the entire article……………………………….
Random Red Flags (CO)
Sometimes we get so used to doing things the way we’ve always done them; we don’t notice (or know to notice) that something is off. In an HOA context, red flags are often missed because they are legal in nature and hidden in the course of ordinary business. Read the entire article……………………………….
Signs, Flags, Artificial Turf, Solar Panels, and Association Records New Laws for Community Associations (CO)
It was a busy year for the Colorado Legislature. Community associations were the subject of much debate and multiple bills. Two of the most important bills for community associations included House Bill 21-1310 and House Bill 21-1229. These new laws amend various provisions within the Colorado Common Interest Ownership Act (CCIOA) and concern the regulation […]
Understanding the Board Treasurer Role and Best Practices
The board treasurer manages the association’s finances and must exercise prudent judgment with investments, evaluate the maintenance costs, and ensure that association funds are always protected. It is a crucial role that comes with large responsibility. While there are several nuanced aspects of the board treasurer position, the following can provide a foundational understanding of […]
Basics of an Association’s Investment Policy (CO)
Boards of directors and community managers rely on policies and procedures to guide community operations. The governing documents serve as the law of the land and the policies provide the roadmap. Each area of community operations likely has a corresponding policy to see that the board can make decisions fairly and efficiently. Just as covenant […]
Passing the Buck Can Cause Collapse
It began about 40 years ago when the Champlain Towers South condominiums, the Surfside, Florida condominium complex that became a news story in June, was first developed. Internal documents apparently contend that the driveway on the top of the building’s garage had “very poor drainage (design flaws) which exposed the garage to water intrusion for […]
Time to Borrow
A few days ago several of my community manager colleagues and I were talking about how several of their associations had a great deal of deferred maintenance and were concerned about the cost to have it completed. We started talking about borrowing the money for the repairs. One of the managers was the on-site manager […]
Community Association Best Practices – Finances (CO)
I like to say that the best practices are born out of the trials and tribulations of the worst practices. If you are a board member or community manager of homeowners associations and condominium communities, the way to learn these best practices without suffering yourself is to learn from the mistakes of others. Over the […]
Taxes and Your Homeowner Association (CO)
Today’s homeowner is savvy and aware of the tax implications of homeownership. Deductions for mortgage interest and real estate taxes are common topics of conversation, however, taxes paid by the HOA are often left out of the discussion. It is easy to assume that HOAs are tax exempt, but the IRS disagrees. The HOA could […]
Understanding the Importance of Assessment Increases (CO)
Any community management professional understands that one of the biggest questions raised year after year by board members and homeowners alike is “Why do we need to increase our assessments this year?” An educated manager that comes ready to answer that question is going to be able to both service the community, and at the […]