Colorado SB 05-100 Non-compliance?

Started by RichardC • 2 replies • 4053 views

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RichardC (Georgia)
Posts: 3

Posted:

There is significant dissension within our Bd of Directors concerning the requirements of Colorado's SB-100. Several would prefer to ignore it. I've looking through Title 38 of Colorado's Statutes, but find nothing concerning penalties or consequences for non-compliance. Why would the legislature waste time developing a bunch of requirements for how "responsible and right-thinking" HOA's should operate without addressing what happens if they don't comply??

RogerB (Colorado)
Posts: 5,067

Posted:

Your Board should not ignore the requirements of SB-100. They leave themselves personally, as well as the Association, wide open to a law suit. Just because the state of Colorado may not provide enforcement is no justification for ignoring the law. What if a disgruntled owner choses to sue? Even if no damages are awarded, the HOA will be liable to pay all legal expenses for both parties. Since they ignored these laws, they did not act in good faith; and the individual Board members and the Association will not be covered by insurance. And if the HOA takes an owner to court on any matter the owner can argue that the HOA knowingly failed to comply with state statues so why should they be held accountable under a HOA regulation. Again the HOA will be placed in jeopardy.

These Board members need to comply with the law or should be replaced! If you have a professional manager request they educate the Board. For the HOA's managed, I drafted 9 rules and regs, amendments to the Bylaws, and digitized all controlling docs and the cost was minimal.

Roger

SDehring (Colorado)
Posts: 2

Posted:

Roger is correct that Colorado does not have any enforcement or regulatory office in place to monitor homeowner association compliance with the Colorado Common Interest Ownership Act ("CCIOA"), including the changes brought to it by SB 100. In addition, there are no civil or criminal penalties for failing to comply with CCIOA. However, there do exist some strong incentives for complying.

First, board members do have the duty to their associations to comply with any applicable laws, regardless of how they view the law's requirements.

Second, CCIOA does have an enforcement provision that gives homeowners the right to bring associations to court for violating any section of the law. If a homeowner prevails on such a claim, the court grants the relief of a court order directing the association to come into immediate compliance with the law. In addition, this enforcement section states that the prevailing party in any action to enforce CCIOA is entitled to the reimbursement of the attorney fees incurred in bringing the action.

Saskia Dehring, Esq.
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HindmanSanchez
Attorney Licensed in the State of Colorado
www.hindmansanchez.com
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