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FredL2 (Colorado)
Posts: 2
Posted:
Hello I'm new to this site. I'm a board member to a Hoa/LOA in Colorado. We have 12 miles of dirt/some what graveled road. Out of 50 lots or so there are only 10 of us living here. We live close to the mountains and have two very steep sections of the road. This was easy to maintain when the drought was here and the climate change was mild.
We are now getting more snow and rain. We managed to get the dangerous parts of the road graveled which for the most part wiped out our budget, sliding off into the abyss is not a fear now or at least as long as the gravel lasts.

We are trying to figure out how to maintain our roads and its starting to look like special assessments. Can someone help me, or point me to the reading. I'm trying to figure where the Association gets the authority to implement a special assessment.

thanks in advance.

Fred
TimB4 (Tennessee)
Posts: 21,059
Posted:
This information is typically within your governing documents.
Normally the CC&Rs give the authority and the Bylaws describe the process that must be followed (board approval or membership approval, caps on amount, etc.)

In the long run, you should consider increasing annual assessments and establishing a reserve fund to cover extra hard winters, etc.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By FredL2 on 08/09/2017 5:01 PM
Hello I'm new to this site. I'm a board member to a Hoa/LOA in Colorado. We have 12 miles of dirt/some what graveled road. Out of 50 lots or so there are only 10 of us living here. We live close to the mountains and have two very steep sections of the road. This was easy to maintain when the drought was here and the climate change was mild.
We are now getting more snow and rain. We managed to get the dangerous parts of the road graveled which for the most part wiped out our budget, sliding off into the abyss is not a fear now or at least as long as the gravel lasts.

We are trying to figure out how to maintain our roads and its starting to look like special assessments. Can someone help me, or point me to the reading. I'm trying to figure where the Association gets the authority to implement a special assessment.

thanks in advance.

Fred

So sorry your HOA has not potentially established a "Reserve Fund" to handle the road maintenance. If you have not done this you definately need to address for the future and maybe raise dues to fund. Potentially "special assessments" should be a last resort. If I was looking to purchase a home and requested HOA documents and that HOA had recently levied a special assessment ... I would think twice or potentially NOT purchase a home in that area. Potentially if I was an owner I would vote to have increased assessments to cover future costs vs special assessment. If you have special assessments that is a big red flag that you are a potentially not well run HOA. However, even if NOT well ran all owners are responsible for equally contributing for said assessments. Potentially your "Special Assessments'" will be handled under your CCR's which we cannot read unless you post those sections.

As far as law ... if your are single family homes then it can be found under 38-33..3 of our CO state statutes such as±

C.R.S. 38-33.3-307 (2016)

38-33.3-307. Upkeep of the common interest community

(1) Except to the extent provided by the declaration, subsection (2) of this section, or section 38-33.3-313 (9), the association is responsible for maintenance, repair, and replacement of the common elements, and each unit owner is responsible for maintenance, repair, and replacement of such owner's unit. Each unit owner shall afford to the association and the other unit owners, and to their agents or employees, access through such owner's unit reasonably necessary for those purposes. If damage is inflicted, or a strong likelihood exists that it will be inflicted, on the common elements or any unit through which access is taken, the unit owner responsible for the damage, or expense to avoid damage, or the association if it is responsible, is liable for the cost of prompt repair.

(1.5) Maintenance, repair, or replacement of any drainage structure or facilities, or other public improvements required by the local governmental entity as a condition of development of the common interest community or any part thereof shall be the responsibility of the association, unless such improvements have been dedicated to and accepted by the local governmental entity for the purpose of maintenance, repair, or replacement or unless such maintenance, repair, or replacement has been authorized by law to be performed by a special district or other municipal or quasi-municipal entity.

(2) In addition to the liability that a declarant as a unit owner has under this article, the declarant alone is liable for all expenses in connection with real estate within the common interest community subject to development rights. No other unit owner and no other portion of the common interest community is subject to a claim for payment of those expenses. Unless the declaration provides otherwise, any income or proceeds from real estate subject to development rights inures to the declarant. If the declarant fails to pay all expenses in connection with real estate within the common interest community subject to development rights, the association may pay such expenses, and such expenses shall be assessed as a common expense against the real estate subject to development rights, and the association may enforce the assessment pursuant to section 38-33.3-316 by treating such real estate as if it were a unit. If the association acquires title to the real estate subject to the development rights through foreclosure or otherwise, the development rights shall not be extinguished thereby, and, thereafter, the association may succeed to any special declarant rights specified in a written instrument prepared, executed, and recorded by the association in accordance with the requirements of section 38-33.3-304 (3).

(3) In a planned community, if all development rights have expired with respect to any real estate, the declarant remains liable for all expenses of that real estate unless, upon expiration, the declaration provides that the real estate becomes common elements or units.

HISTORY: Source: L. 91: Entire article added, p. 1744, § 1, effective July 1, 1992.L. 93: (2) amended, p. 651, § 17, effective April 30.L. 98: (2) amended, p. 483, § 14, effective July 1.
FredL2 (Colorado)
Posts: 2
Posted:
Hello Janet and thank you for hard work getting me answers. I will study this information. We are not a HOA the state taxes us as such but we would be a LOA. The lots are 35 acres anyone needing water can drill. We have been proud that the Assessment has not changed for 20 years. I work the road committee and also plow in the winter.

To raise the assessment i need a 80% vote at least. Not thinking thats going to happen. This is what led me down the path of Special Assessments. Most of of our owners are absentees, I have several flopping around on the deck like fish already. I'm hearing comments like we don't live there so we are not going to pay. I'm sure that any move towards increasing Assessments or Special assessments is going to cause a ripple and the current board will be voted out.

From what your saying to me we need to take our Association to the next level.

Again thank you.

Fred in Stonewall

JanetB2 (Colorado)
Posts: 4,219
Posted:
LOA??? You might want to look at your Title Insurance documents and see what they state is attached to your property title.

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