Colorado HOA Information Center
The Colorado legislature has recently provided a new opportunity for community associations and their homeowners to access information. The Colorado HOA Information and Resource Center legislation was created by House Bill 10-1278 and signed into law by the Governor on June 7th, 2010. The Center will be organized under the control of the Colorado Division of Real Estate and be managed by an HOA Information Officer. It will essentially act as a registry and library of information.
Information available from the Center will be limited to the basic rights and duties of the homeowners, their associations and declarants. Although the Center will not advocate for the rights of either party, nor mediate any disputes, it is required to track inquiries and complaints and report annually to the Director of the Division of Real Estate.
The Bill applies to all homeowner associations “formed before, on, or after July 1, 1992, as part of a Common Interest Community as defined in Section 38-33.3-103” of the Colorado Common Interest Ownership Act (CCIOA). The Bill requires each association to register, pay a registration fee and report annually to the State. An association is exempt from the imposed fee, but not the registration requirement, if it has annual revenues of $5000 or less, or is not authorized to make assessments and does not have revenue.
According to HOA attorneys Orten Cavanagh Richmond & Holmes LLC, the fee is likely to be $15 to $20 per year, but not greater than $50. Although the HOA Information Officer has no power to enforce an association’s documents under the Bill, if an eligible association fails to register and pay the annual fee, it will not be able to impose or enforce a lien for assessments, or employ any other enforcement mechanisms to enforce covenants until the association is validly registered.
Currently the Division of Real Estate does not have its systems in place yet, but has indicated this would be accomplished by the end of this year to enable the required associations to register and report prior to the January 1, 2011 deadline. In anticipation of this, your association should prepare, firstly by determining eligibility status, secondly by establishing policies and procedures to file complaints on their challenges with administration and governance, and finally by registering and paying the annual fee by January 1, 2011.