Homeowners Fight Back

June 2005

Colorado homeowners now have significantly more rights under the Property Owner’s Bill of Rights contained in Senate Bill 100.  Senate Bill 100 revises the Colorado Common Interest Ownership Act by placing new restrictions on Colorado Homeowners’ Associations (“HOAs”).  After being introduced in the Senate on January 17, 2005, the House of Representatives and the Senate finally passed the bill and sent it to Governor Owens on May 18, 2005 who signed Senate Bill 100 into law on June 6, 2005. 

The new law requires HOAs to comply with many new restrictions and requirements, including:

• Limiting the ability of HOAs to use restrictive covenants that:
  • Prohibit or limit Xeriscape and drought-tolerant landscapes;
  • Prohibit the display of the American Flag; a Service Flag bearing a star denoting the service of the homeowner or a member of the homeowner’s immediate family or the display of  political signs; and
  • Prohibit a homeowner from parking a vehicle on a street, driveway or guest parking area if the vehicle is required to be available to the homeowner at certain times as a condition of the homeowner’s employment.
• Requiring an HOA to:
  • Disclose to all homeowners at least once a year, in a written notice stating the name of the HOA, the name of the HOAs’ designated agent or management company, a valid physical address and telephone number for the HOA and the designated agent or management company; 
  • Maintain accounting records using generally accepted accounting principles;
  • Adopt policies, procedures, and rules and regulations for, among others, the collection of unpaid assessments, handling conflicts of interests involving board members, conduct of meetings, enforcement of covenants and rules and the investment of reserve funds;
  • Keep detailed financial records including unpaid assessments, permanent records of minutes of all meetings of homeowners and the executive board, a record of all homeowners’ names and address and the number of votes each homeowner is entitled to vote;
  • Make all financial and other records available for examination and copying by any homeowner or any homeowners’ authorized agent; and
  • Hold open meetings and encourage homeowner participation in these meetings.

In general, the provisions of House Bill 100 prohibiting or limiting Xeriscape and drought-tolerant landscapes, prohibiting the display of the American Flag and the new requirements to amend HOAs’ declarations went into effect on June 6, 2005 and the remainder of the provisions go into effect on January 1, 2006.

This legal update is for informational purposes only as a service to clients and other friends, is not a complete summary of the rules relating to the subject matter discussed above, and is neither to be construed as legal advice nor intended as basis for decisions in specific situations. For more information about this subject matter or other recent developments, please contact the attorneys in our Real Estate practice group or any other attorney in our firm with whom you normally consult by calling (303) 825-4200.