S.B. 05-100 Common interest communities - homeowners' associations - condominiums - covenants - rights and duties of unit owners - association executive boards - conflicts of interest - organization - administration - meetings - voting - dispute resolution - attorney fees - xeriscaping - political speech. Prohibits the homeowners' association (HOA) of a common interest community from adopting covenants or rules that prevent a unit owner from:
● Displaying an American flag, military service flag, or political sign;
● Removing trees and brush or replacing flammable roofing material for fire mitigation purposes; or
● Parking an emergency vehicle in the community, if the unit owner is employed by a fire department or other provider of emergency services and must have ready access to the vehicle as a condition of employment.
Invalidates any new or existing covenant or condition, including the requirement for an architect's stamp or change fee, that prohibits or discourages a unit owner from employing xeriscape or that requires landscaping to consist exclusively or primarily of turf grass. Allows an HOA to take enforcement action against a unit owner that allows the unit owner's existing landscaping to die, except during a period of water use restrictions.
Requires the buyer of a home in a community subject to an HOA to receive notice and documentation regarding the need for architectural approval of any changes to the property and the right of the HOA to place a lien on the property for unpaid assessments. Also requires the seller to provide to the buyer a copy of the HOA's covenants, rules, bylaws, and current financial information. Makes the seller liable for any damages caused by the failure to provide such information unless the failure resulted from the HOA's refusal to cooperate with the seller in furnishing documents.
Requires the HOA to furnish to all unit owners in writing, at least once per year:
● Current contact information for the HOA and its management company or agent;
● Current financial information, including an operating budget, a list of all insurance policies, and a list of all applicable assessments;
● Minutes of all meetings held during the year;
● Copies of the bylaws, articles, rules, and responsible governance policies; and
● The results of its most recent annual financial audit or review, which must be conducted at least once every 2 years.
Clarifies that a management company must comply with all laws that govern the conduct of the HOA, when the management company acts on behalf of the HOA. Requires that the management company's contract be terminable for cause without penalty to the HOA. States that the form of organization of the HOA (as a corporation, nonprofit entity, etc.) does not affect its legal rights and obligations.
Encourages HOAs to enter into agreements with lenders so that a unit owner's mortgage payment and monthly assessment can be combined into a single payment.
Enacts open meeting provisions. Requires the HOA executive board to give unit owners a reasonable opportunity to speak before taking action on a community issue. Specifies that notice of meetings must be given in advance, by posting in a conspicuous place whenever feasible. Requires elections to the executive board and votes on other community matters to be taken by secret ballot, with the results reported by a neutral party. Invalidates any proxy obtained through fraud or misrepresentation.
Where notice to first mortgage holders is required for any changes to the declaration (containing the covenants), allows notice by mail to the last known address of such mortgage holders, and presumes consent if no objection is given within 60 days. Invalidates any covenant that requires greater than a 67% supermajority to amend the declaration.
Enacts conflict-of-interest rules for board members. Invalidates any action taken, and any contract entered into, in which a board member has an undisclosed conflict of interest.
Requires the board to follow generally accepted accounting principles in financial records and adopt clear policies regarding collection of assessments, conflicts of interest, conduct of meetings, enforcement of covenants, and other matters.
Allows board members to be reimbursed for educational meetings and seminars on good governance for HOAs. Requires some form of education/information to be offered to unit owners annually regarding the general operation of the HOA and the rights and responsibilities of unit owners and the board under Colorado law.
Requires the financial records of the HOA to be audited or reviewed at least once every 2 years; except that an audit is only required if the HOA has annual revenues or expenditures of $250,000 or more and at least 1/3 of the unit owners request an audit.
Encourages alternative dispute resolution. In cases of conflict between a unit owner and the HOA, makes the following changes to provisions governing the assessment of attorney fees:
● There can be no automatic liability for attorney fees and collection costs except in connection with "assessments or any money or sums due to the association". In all other cases, an award of attorney fees against a unit owner depends upon whether the unit owner was alleged to have violated a statute or covenant or rule of the HOA and, if so, whether the allegation was proven in court.
● If the HOA sues, or is sued by, a unit owner and the unit owner prevails, prohibits the HOA from assessing the unit owner for its attorney fees incurred in defending the action.
● Allows awarding of attorney fees to the prevailing party in litigation, but the HOA may be awarded attorney fees only if the unit owner's claim or defense was "frivolous".
● Voids all covenants requiring a unit owner to confess judgment for attorney fees or collection costs.
Enacts open records requirements for books and records of the HOA. Allows the HOA to charge a reasonable fee, not to exceed the HOA's actual cost, for copies. Requires that a records request be made in good faith, for a proper purpose, and adequately describe the records that are sought. Exempts privileged information such as that pertaining to pending litigation or personnel matters.
Allows a community that was merged with another under existing law to withdraw under specified circumstances, if the withdrawal would not inhibit the remaining community's ability to enforce existing covenants, maintain existing facilities, or continue to exist.
When property damage occurs and there is a question of whether the property is part of a unit or part of the common property, allows a unit owner to submit a claim directly to the HOA's insurer as though the unit owner were an additional named insured.
Exempts time-share units, and HOAs that include time-share units, from specified provisions of the act. Delays the effectiveness of most provisions until January 1, 2006, except for those provisions pertaining to xeriscape, fire mitigation, political speech, parking of emergency vehicles, and withdrawal from merged communities.
APPROVED by Governor June 6, 2005
EFFECTIVE June 6, 2005
H.B. 05-1058 Tenants and landlords - mobile homes - home owner meetings - rental agreements - basic rights. States that the home owners in a mobile home park shall have the right to establish a homeowners' association.
Requires the terms of a tenancy to be specified in a written rental agreement. Specifies that the standard rental agreement shall be for a month-to-month tenancy, that subject to certain conditions, upon written request by a home owner to the landlord, the landlord shall allow a rental agreement for a fixed tenancy of not less than one year, and that a landlord may allow for a lease for a fixed period of longer than one year.
Requires a landlord of a mobile home park to give notice to the mobile home owners if the landlord intends to change the use of the land comprising the park or sell the park. Allows one or more members of the homeowners' association of a mobile home park to form a cooperative for the purposes of offering to purchase or finance a mobile home park. Specifies that participation in a cooperative is voluntary.
States that every home owner in, and landlord of, a mobile home park shall have the right to the following: protection from abuse or disregard of state or local law by the landlord or the home owners; peaceful enjoyment of the home owner's mobile home space, free from unreasonable, arbitrary, or capricious rules and enforcement thereof; and tenancy free from harassment or frivolous lawsuits by the landlord and home owners. Creates a private civil right of action for any home owner in a mobile home park against a landlord who violates any statutory protections offered to the home owner. Specifies the home owner in any such action shall be entitled to actual economic damages and may be entitled to attorney fees and costs.
APPROVED by Governor April 5, 2005
EFFECTIVE August 8, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see page vi of this digest.
H.B. 05-1061 Landlords and tenants - maximum late fees - notice - security deposit. Requires a landlord to give a copy of a written lease to a tenant. Establishes the maximum late fee for late rent. Requires a landlord who is evicting a tenant to give the tenant a written notice with specific information about the eviction proceedings. With certain specified exceptions, prohibits a lease from including a waiver of statutory protections for a tenant. Identifies persons to whom the foregoing restrictions and requirements do not apply.
Reduces the maximum time that a landlord may retain a security deposit from 60 to 45 days.
VETOED by Governor May 5, 2005
H.B. 05-1168 Public trustees - administrative matters. Clarifies that the cost for opening and administering a foreclosure on a deed of trust where the original principal amount of the indebtedness secured does not exceed $480,000 is $150. Permits a public trustee to display or provide a written copy of specified information at a public trustee's sale as an alternative to reading the information. Permits a public trustee or sheriff to allow an owner of an evidence of debt secured by the deed of trust, mortgage, or other lien to be foreclosed or the attorney for such owner to establish an account to be used to pay the fees and expenses related to foreclosures filed by the owner or attorney. Permits a public trustee to post or provide notice of a continuance of a foreclosure sale as an alternative to making an oral announcement of the continuance. Clarifies that any document related to a foreclosure may be accepted or made available to the public trustee or sheriff in an electronic format, and makes a conforming amendment to the "Uniform Electronic Transactions Act" related thereto. Permits every certificate of purchase and certain certificates of redemption to be assignable by a separate assignment instead of just by an endorsement on the certificate.
APPROVED by Governor April 27, 2005
EFFECTIVE August 8, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see page vi of this digest.
H.B. 05-1169 Tenancy and residential lease violations - exceptions in cases of domestic violence or abuse. Amends forcible entry and detainer laws to provide that, when a tenant is the documented victim of domestic violence or domestic abuse, the alleged lease violations shall not constitute an unlawful detention of real property and shall not cause the tenant to be guilty of an unlawful detention of real property if the domestic violence or domestic abuse was the cause of or resulted in the alleged unlawful detention. Preserves a landlord's right to seek judgment for possession against the tenant or lessee of the premises who perpetuated the violence or abuse that was the cause of or resulted in the alleged unlawful detention.
Allows a tenant to terminate a lease agreement and to vacate the leased premises if he or she provides written notice and documentation to the landlord that he or she is the victim of domestic violence or domestic abuse. In such circumstances, requires the tenant to pay one month's rent within 90 days after vacating the premises, if the landlord has experienced and documented damages equal to at least one month's rent as a result of the tenant's early termination of the agreement. Specifies that a landlord may not terminate a lease and evict a tenant solely because the tenant is the victim of domestic violence or domestic abuse.
Makes provisions of the act applicable to lease and rental agreements entered into on or after July 1, 2005.
APPROVED by Governor April 27, 2005
EFFECTIVE July 1, 2005
H.B. 05-1192 Termination of a planned community - notice to municipality or county. Prohibits a planned community that is required to exist pursuant to a development or site plan from terminating unless a copy of the termination agreement is sent to the governing body of every municipality in which a portion of it is situated or, if the planned community is situated in an unincorporated area, the board of county commissioners for every county in which a portion of it is situated.
APPROVED by Governor June 3, 2005
EFFECTIVE August 8, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning
the effective date, see page vi of this digest.
H.B. 05-1195 Deeds - conveyance of grantor's interest in vacated right-of-way - exception. Specifies that every deed shall be a conveyance of the grantor's interest, if any, in any vacated street, alley, or other right-of-way that adjoins the subject real property unless the transfer of such interest is expressly excluded in the deed.
APPROVED by Governor April 27, 2005
EFFECTIVE April 27, 2005
H.B. 05-1345 Animals - lien for care and feeding. Clarifies conflicting references in statutes governing liens for the care and feeding of animals. Removes references related to horses, mules, asses, cattle, sheep, and hogs from one statute that are governed by a separate agistor's lien statute. Replaces the phrase "dogs, cats, or other domestic animals" with the defined phrase "pet animals" for purposes of the remaining statute.
APPROVED by Governor May 27, 2005
EFFECTIVE May 27, 2005
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