Colorado HOA Laws/Statutes

Larry, click on HindmanSanchez under the sponsors. They have posted some of the key amendments in recent years which have been made to the Colorado Common Interest Ownership Act (CCIOA). Or google CCIOA. However, I doubt these will help you in reviewing questionable expenses by the builder who is in control of your HOA. That would require a detailed audit (not a financial review).

Larry, the comment about the developer still being in control of the HOA did not muddy the water.

It was a very key component.

With the developer still in charge of the HOA, the members have very little official input and/or control over what he does and how he does it. And that includes what plants he spends the money on.

You can ask for the financial documents, but it's not likely that you can obtain individual receipts and so forth for your viewing pleasure.

And it appears you may be sort of green about what the developer "contributes" to the HOA.

Who do you think invested in the infrastructure of the subdivision (such as the roads, the sewers, the underground utilities, etc etc etc? Who do you think supplied the bond money for the roads and/or sewers? Who do you think paid for marketing the development, obtaining all the zoning approvals, from the development level down?

The developer has made a huge investment in the creation of the development, especially prior to any single lot at all being sold and having the "assessments" coming in.

Even more so when not all the lots are sold/developed yet, and therefore not providing full $$$ for the operating capital for the association.

Also, in most HOAs that I'm aware, when the developer still has control of the development/association, he also has a class of voting that doubles or triples his votes per lot versus the homeowner membership class of one vote per lot.

So even if he had fewer lots than all the homeowners, he would still likely have voting control over virtually all aspects of the corporation, including the ability to change the by-laws or covenants to better suit his needs to finish and/or market the development.

Now, in Colorado and other states, he still may have to operate within certain HOA statutes, but they are still going to favor the developer for one very good reason: He's the one who has put up all the risk to create the development. Once he is finished with it, it's all yours to move forward with.