Rep. Amy Stephens, a Monument Republican, has introduced a little bill in the 2010 Colorado General Assembly that would have a big impact on small homeowners associations.
Stephens’ bill, House Bill 1290, would allow small HOAs to exempt themselves from the Colorado Common Interest Ownership Act, a law enacted in 1992 to govern condominium and townhome complexes as well as large neighborhoods that have jointly owned parks, trails, open space and covenants.
She calls it a matter of “common sense” because large condos and townhome
complexes and sprawling subdivisions like Woodmoor with its 3,000 homes have much different issues than small single-family neighborhoods that were commonly build in the 1970s and ’80s.
To Jan Doran, administrator of the Discovery neighborhood homeowners association in Rockrimmon, it’s a matter of fairness.
Her HOA collects just $30 a year in dues from its 329 homeowners. That’s not even $10,000 in annual revenue. She said the HOA can’t afford all the government mandates handed down in recent years by the General Assembly.
It maintains a Web site where it posts all its covenants, bylaws, budgets, audits, reports and meeting minutes. But then there are the reports the HOA must produce for real estate agents and prospective buyers in addition to Discovery residents.
Attorney Lenard Rioth says an oversight in 1992 led to older, smaller HOAs to remain under the rule of CCIOA while newer, smaller HOAs were exempt. He said it’s time to allow the older, smaller HOAs like Discovery to opt out, too, if they like.