Legislative Update

2014 Legislative Session

• Email Disclosure - HB 14-1125
• HOA Disclosure - HB 14-1254

The Construction Defect Reform

*Incentivize builders into building affordable condominiums
VS.
*Shield developers from construction defect liability

SB 14-220

As introduced, the bill had three requirements:
*Associations must follow the arbitration provision set forth in the declaration
*Full transparency provision
*Full disclosure of the arbitration provision at sale of unit to purchaser

HOA Organization:Board, Officers and Committees

HOA Statistics

Colorado has approximately 9,000 community associations
90% of all owners are satisfied with their associations
90% of all owners are satisfied with their community association board members

Top 5 claims against boards of directors:

Failure to maintain and repair the common property.
Failure to adequately gauge and fund reserves.
Improper investment of reserves.
Improper budget management.
Failure to collect assessments.

Board of Directors

Board’s Fiduciary Duty
A fiduciary duty exists when there is a relationship of special confidence, in which one party to the relationship is bound to act in good faith and with due regard to the interests of the other.

Officers

• President  
• Vice President
• Secretary 
• Treasurer

Committees

• Types  
• Structures
• Purposes 

Questions?