By Tracy Kinsella, Garfield & Hecht, P.C. Avon, Colorado
Governor Polis signed HB 21-1229 into law on July 2, 2021. This bill titled “Concerning Increased Protections for Unit Owners in the Governance of Unit Owners’ Associations under the Colorado Common Interest Ownership Act” adds additional record keeping requirements for Colorado homeowner associations among other updates. The Colorado Common Interest Ownership Act (“CCIOA”) contains a section addressing homeowner association record keeping (C.R.S. 38-33.3-317). With the passage of this law, recording keeping must now include:
- A list of the current amount due of all unique and extraordinary fees, assessments and expenses charge by the homeowner association in connection with the purchase or sale of any unit subject to the association, including transfer fees, record change fees and the charge for a status letter or statement of assessments due.
HB 21-1229 further updated the public disclosure document requirement found in C.R.S. § 38-33.3-209.4. This part of CCIOA identifies the disclosures which must be made within 90 days after a declarant turnover of the homeowner association but also the annual disclosures which must be made after the close of each fiscal year. Homeowner associations are now required to keep the underlying documents from those disclosures as part of the record keeping.
Moreover, the legislature beefed up the language in CCIOA regarding owner access to association records. In particular, associations now face fines for failing to comply with owner requests for inspection and copying of association records. In the event that access is not provided within 30 calendar days of (i) a written requested submitted by certified mail, return receipt requested, and (ii) payment of any fees required for such access and copying, the homeowner association is liable for a penalty of $50 per day up to maximum of $500 OR the owner’s actual damages sustained as a result of the refusal to provide access, whichever is greater.
HB 21-1229 also touched on the installation of renewable energy devices by clarifying the guidelines and further addressed nonvegetative turf grass that a homeowner association may regulate while specifically allowing owners to install such turf grass in a backyard.
Governor Polis also signed HB 21-1310 into law on July 2, 2021. This bill titled “Concerning Additional Protections for Homeowners’ Freedom of Expression in Common Interest Communities under the Colorado Common Interest Ownership Act” allows owners greater flexibility for the display of flags. Codified at C.R.S. § 38-33.3-106.5, the bill was previously restricted to the American flag. However, homeowner associations must now allow flags in general unless such flag conveys a commercial message. Homeowner associations must allow the display of flags or signs and may only subject the same to content-neutral limits.
HB 21-1229 and HB 21-1310 are both mandatory for all pre-CCIOA Common Interest Communities.
For more information on this legislation or any other issues concerning Colorado Common Interest Communities please contact one of our attorneys.
In our Aspen office please contact Ron Garfield (garfield@garfieldhecht.com, 970-925-1936, ext. 201) or Chris LaCroix (clacroix@garfieldhecht.com, 970-925-1936, ext. 204).
In our Avon office please contact Tracy Kinsella (tkinsella@garfieldhecht.com,, 970-925-1936, ext. 854)
In our Carbondale office please contact Kelcey Nichols (knichols@garfieldhecht.com, 970-925-1936, ext. 221).
In or Crested Butte office please contact John Belkin (jbelkin@garfieldhecht.com, 970-925-1936, ext. 215).
In our Denver office please contact Kursten Canada (kcanada@garfieldhecht.com, 970-925-1936, ext. 853) or Jason Buckley (jbuckley@garfieldhecht.com, 970=925-1936, ext. 851).
In our Glenwood office or Rifle office please contact David McConaughy (dmcconaughy@garfieldhecht.com, 970-925-1936, ext. 810).
