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ScottL11 (Colorado)
Posts: 8
Posted:
I live in a community that has lived peacefully with recorded covenants but no HOA for 25 years. Recently a group of residents is trying to force the entire community into a HOA. Is it possible to be forced into a HOA in a situation like this? We live in Colorado and the covenants were recorded prior to the CCIOA laws passed in 1992.

I agreed to the covenants, but not a standing HOA. What I can't reconcile is this. If it is possible to forcibly seize control of the covenants and form a HOA, can't anyone do it at any time? How does an HOA get its authorization for those covenants?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Scott,

An Associations authority and creation would come from the covenants.

You might need to seek a legal opinion on if the Association you describe could be Mandatory membership or Voluntary membership.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Scott,

The bad news is that the Colorado Supreme Court took a flying leap in the face of overwhelming opposing opinions from other states and held that owners may impose new burdens on themselves, including mandatory membership in an HOA that did not exist previously. See: EVERGREEN HIGHLANDS ASSOCIATION v. WEST at http://caselaw.findlaw.com/co-supreme-court/1183127.html

This was a 2003 decision and I do not know if it still stands but I believe it does.

The answer to your question, "How does an HOA get its authorization for those covenants?" is that by purchasing property subject to covenants you implied agreement with their terms. Covenants usually have some mechanism for amending and if your fellow homeowners agreed to an amendment to include an HOA then you are stuck.

The most important element of this is the one you omitted: How did they do that? If those in favor of a mandatory HOA followed the amendment process laid out in your Declaration, including recording the amendment then you are likely now an HOA member. On the other hand, there have been numerous attempts at imposing new restrictions through other means, such as amending bylaws or an HOA board simply declaring everyone is a member. If you are concerned about this then I suggest consulting an attorney asap to verify that your neighbors followed all the rules.

ScottL11 (Colorado)
Posts: 8
Posted:
Crud. I feared the modification clause for that very reason. You gave me what I was looking for. I feared the case law and you provided it.

I reminded this group to conduct this matte in accordance with the CCIOA and they have repeatedly ignored this request. Is that what you are talking about?
MarkM31 (Washington)
Posts: 351
Posted:
It not really that there was never a HOA, but that your HOA was inactive. The CC&R create the HOA.
KevinK7 (Florida)
Posts: 1,343
Posted:
Quote:
Posted By MarkM31 on 06/18/2016 6:54 AM
It not really that there was never a HOA, but that your HOA was inactive. The CC&R create the HOA.

Not necessarily.my covenants didn't create a hoa. There is zero mention of one. There did exist a club that assumed that role and rewrote the restrictions to grant themselves authority, but case law here IN Florida would seem to not allow that.

I suppose the actions of your neighborhood depend on the wording regarding HOAs.
ScottL11 (Colorado)
Posts: 8
Posted:
I think LarryB13 nailed it. The case law of Colorado demonstrates that if the covenants are modified to include a HOA clause in accordance with the ammenent process of the covenants they can they force you into a HOA. Our covenants have a change clause and it is obvious this group is looking to exploit the change clause in this fashion.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ScottL11 on 06/18/2016 7:28 AM
The case law of Colorado demonstrates that if the covenants are modified to include a HOA clause in accordance with the ammenent process of the covenants they can they force you into a HOA. Our covenants have a change clause and it is obvious this group is looking to exploit the change clause in this fashion.


In my limited research, Colorado seems to be the only state to have explicitly authorized the "anything goes" approach to CC&R amendments. Other states where this issue has come up have followed the "Lakeland line" of cases and held that CC&R's may not be amended in such a way as to make them more restrictive or to add unforeseeable burdens to the property owners.

BTW, the Colorado Court of Appeals initially ruled in favor of Lakeland but the state Supreme Court overruled them. See: http://caselaw.findlaw.com/co-court-of-appeals/1366573.html

MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By LarryB13 on 06/18/2016 10:10 AM

BTW, the Colorado Court of Appeals initially ruled in favor of Lakeland but the state Supreme Court overruled them. See: http://caselaw.findlaw.com/co-court-of-appeals/1366573.html


Yea that.
ScottL11 (Colorado)
Posts: 8
Posted:
Thanks for all of the great information. This is what I was looking for.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

How do you all enforce the Covenants?
ScottL11 (Colorado)
Posts: 8
Posted:
We haven't for 25 years. In the past year it turnes into suing each other.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By ScottL11 on 06/17/2016 9:15 PM
I live in a community that has lived peacefully with recorded covenants but no HOA for 25 years.

Quote:
Posted By JohnC46 on 06/18/2016 3:05 PM
Scott

How do you all enforce the Covenants?

Quote:
Posted By ScottL11 on 06/18/2016 3:06 PM
We haven't for 25 years. In the past year it turnes into suing each other.

Doesn't sound too peaceful. What changed, and what covenants are there to enforce? Is there any property or infrastructure?
ScottL11 (Colorado)
Posts: 8
Posted:
Non common interest property to speak of. Just home property maintenance type of covenants. It was peaceful for 25 years until a company that sets up old folks homes bought a home and started doing significant improvements to accomdoate or wiser generation. Some folks took offense and rallied the community into a lawsuit. Against them. At first I supported the suit but after seeing discriminatory comments from the group I distanced myself from it immediately. In fact, I feel silly in hindsight for letting myself get.baited into it at all. We do have a No Business rule but so what. It isn't a store front with customer parking. So the same folks didn't do so well in court and don't like that some folks, like myself, didn't pay our fair share of the burden to "improve" our community so they are pulling this stunt to try to force everyone to make it better. No problems for 25 years with zero covenant enforcement. It was such a great community and now I'm too pissed at folks for behaving like this. I told them it was a liability to pursue it and that's why I wanted nothing to do with it but somehow I am the scab for being smart enough to know it was a losing fight.
LarryE3 (Colorado)
Posts: 39
Posted:
Scott,

We recently created procedures that outline how CCR violations are handled. In fact, the CCIOA mandates such a policy/procedure. As I understand it, without this documented procedure, the Association is unable to levy fines. People don't like it, but we remind them that they agreed to the covenants when they bought their property. This procedure outlines the process (e.g., initial contact with the offending party, a hearing with the Board, and letters documenting what will happen and when if a problem is not resolved) and when fines would be levied.
ScottL11 (Colorado)
Posts: 8
Posted:
Yah. That sounds excellent to me because it is a well documented process. We don't have a registered community yet. Just stale covenants. I am quite fine with the covenants as they are now. Although some are pretty ambiguous. Leaving interpretation wide open. We have no defined processes at all. That would really help. I think we're in a situation where our covenants are a liability as they are until we either terminate them or form a proper HOA legally. I can accept a HOA if it is done legally, ethically and with proper constraints in place.
KevinK7 (Florida)
Posts: 1,343
Posted:
If you are fine with the covenants and the community why don't you incorporate a HOA first and beat these people to the punch? Even draft your own amendments to prevent abuse?
ScottL11 (Colorado)
Posts: 8
Posted:
I have been thinking along those lines. Good thinking. Is there are source of covenants that courts and communities generally approve of that I can sift through? That could help get me started.

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