HOA Center

The Division of Real Estate would like to announce that David L. Donnelly is the new HOA Information Officer and will be heading up the HOA Information and Resource Center starting at the beginning of April.

In our recent article titled “Water Damage: Who’s Responsible?”, we discuss the issues involved in determining responsibility when water damage occurs in a unit within a homeowners association. Another consideration when dealing with water damage in an HOA is who is responsible for the insurance deductible. Generally, if damage to an insured property is less than the amount of the insurance deductible, then the insured would likely not file a claim, as there would be no insurance payout. However, for many associations, the cost of water damage frequently exceeds the amount of the insured’s deductible. When that occurs, the parties involved need to know who will be responsible for paying the deductible. 

If you’ve been following this year’s legislative session, you’ve undoubtedly heard of HB21-1310. Its stated purpose is to provide additional protections for homeowner’s freedom of expression in an HOA under the Colorado Common Interest Ownership Act (“CCIOA”).

Determining responsibility for water damage that occurs in a unit within a homeowners association is not always a simple process. There are several considerations to be had and whether or not a party was negligent or irresponsible isn’t always the first question to ask.

The effort and resources it takes to effectively govern a homeowners association requires collaboration and cooperation from more than one person. As such, the use of committees in community associations can be a very useful tool for accomplishing the goals of the association. However, in order to be most effective, committees should be well formed with specific purposes and guidelines for their operation.

Association finances are usually on the top of the list when homeowners are asked about what concerns them the most about their HOA. Since the only way that most association boards believe they can generate revenue is through assessments, annual increases in dues and the levying of special assessments have become the norm. However, there are some ways for an association to generate additional income that many may have not thought about.

There are many ways to operate and govern a homeowners association. Some boards prefer to use a community association manager as an agent to interact with the membership and deal with day-to-day operations. Other boards may choose to be more hands on and active with governance and communication with their membership. While both approaches hold value, regardless of management style, one thing should always be at the top of your mind - homeowners associations are communities and the people who live there are your neighbors.

One of the core requirements of living in an HOA is the sharing of expenses. It is quite literally at the heart of the definition of a common interest community. Therefore, it makes sense that members are given the opportunity to have some input on the budget for their association.

One of the most common questions the HOA Information Center is asked is “Doesn’t my association have to provide notice of that?” Well, that depends on what “that'' is. The majority of meetings that will take place in an HOA are Board meetings.