Side Streets ~ Neighborhood people and issues

Archive for the 'Lenard Rioth' Tag

WHAT THE HECK DO THESE COVENANTS MEAN?

January 17th, 2013, 1:52 pm by

Terry Bott thought she did everything right when she bought her home in Trail Ridge South neighborhood in Northgate in 2003.

“I read all the covenants,” said Bott, an accountant who works for a homebuilder. “There were some I didn’t like. I can’t have a clothes line, for example. I think that’s stupid. But I agreed to abide by it.

“I told myself I was willing to abide by everything in the covenants even though I didn’t like all the stuff.”

So she was angry in 2006 when the board of the Trail Ridge South Homeowners Association passed rules prohibiting homeowners from parking on neighborhood streets, which are public.  She’s been fighting the HOA ever since.

First, she volunteered to serve on the board to work for change.

After a couple of years she resigned, but has continued to challenge the rule, which allows guests to the neighborhood to park on the street. Just not homeowners.

Bott went back to her copy of the covenants, which govern things such as landscaping, paint colors, displays of signs and flags and changes to a home.

Every buyer in a covenant-protected neighborhood agrees to honor the covenants, which are enforced by volunteer boards that police the neighborhood. Often, property management companies are hired to collect dues, maintain commonly owned neighborhood parks, pools and rights-of-way and do the dirty work of enforcement.

Anyway, Bott studied the covenants, written by the developer in 2001, and found only one reference to parking.

“The covenants only say abandoned cars after five days and recreational vehicles can not park in the street,” Bott said.

Trail Ridge South resident Terry Bott says she studied the covenants before buying in the neighborhood in 2003 because she specifically wanted to be able to park in front of her home. She is upset the Homeowners Association board passed a rule in 2006 banning on-street parking by residents.

So I gave the covenants a look. I’m not exactly Stephen J. Hawking, but I can read. What I read left me puzzled. (Shocking, I know.) There was one paragraph on parking: Section 4.11 Restrictions on Parking and Storage.

Sure enough, it bans abandoned vehicles. It requires garage doors to be kept closed except “when in immediate use” by a vehicle. It goes on to say: “Boats, recreational vehicles, campers, motor homes, trailers and other such vehicles shall be kept in the garage” . . . “and shall in no event be parked on the streets” of the neighborhood.

The HOA board read that paragraph as permission to adopt a rule six years ago banning parking by home-owners.

Trail Ridge South HOA president Amy Umiamaka

HOA president Amy Umiamaka wasn’t on the board at the time. But she said the board was concerned about safety of children riding bikes and appearance.

“It sure does make the neighborhood look nicer,” Umiamaka said.

To appease Bott, she said, the HOA board finally solicited a legal opinion from attorney Lenard Rioth last fall.

In a November letter to the HOA, Rioth said he believed the rule prohibiting parking was valid. He concluded the “other such vehicles” language applies to car and trucks.

“It’s pretty straight-forward,” Rioth told me. “There’s plenty of case law to support the board.”

But another longtime HOA attorney, Jack Scheuerman, said it wasn’t so simple.

“Banning parking exceeds the authority they have under the covenants,” Scheuerman told me. “I think a judge would shoot it down.”

Shocking, isn’t it, that neighbors and lawyers all disagree?

Bott is convinced she has the right to park on the street and it doesn’t matter if a majority of her neighbors agree with the board’s actions.

I’ve talked to neighbors on both sides of the question. The community certainly is divided.

Some say it’s imperative to the safety of neighborhood children to keep cars off the street. Others say it’s unfair to allow guests to park on the street but not homeowners. Some have several teenage drivers and no room in their driveways for all the cars.

Bott seems determined to resolve the question of what Section 4.11 really means.

“I’m not going to drop this,” she said. “I resigned from the HOA board because I thought what they were trying to do was wrong.”

She said the dispute has led to heated board meetings and confrontations.

“I’ve been told by a board member that I should move if I do not like what they are doing. These guys need to be stopped.”

Here’s a guess: a judge ultimately will decide the definition of “other such vehicles.”

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HOA BOARDS WILL SHARE DOCUMENTS, EMAILS, MORE

December 20th, 2012, 1:01 pm by

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If you volunteer on an homeowners association board, you better create a new email account, quickly, for HOA business only.

And be prepared to operate with greater accountability to your fellow homeowners.

A new state law taking effect Jan. 1, 2013 mandates new levels of transparency fromf HOA officers while its takes steps to protect the privacy of the 2 million Coloradans living in HOAs, or covenant-protected communities.

How much does the law change life in an HOA?

Consider those neighborly directories of names, phone numbers and email addresses of residents that are published by many HOAs. They can no longer be routinely distributed.

“Those kinds of directories now require written consent of the owners before they can be distributed,” said Lenard Rioth, longtime HOA attorney. “The new law requires personal identification and account information, including the telephone numbers and email addresses of owners, must be kept private.”

However the privacy protections in the bill, passed by the 2012 General Assembly, do not apply to board members. They are required to publish their own email addresses.  And they must be prepared to release all emails related to HOA business and decisions.

“My recommendation to all board members is that they get separate email addresses from their personal email accounts,” Rioth said. “If they use their personal email accounts for HOA business and there’s ever litigation, they may be forced by a judge to produce all their personal emails from their family and friends.”

The new law was contained in House Bill 1237, written by Rep. Angela Williams, D-Denver,  and the Community Associations Institute, an HOA management industry group.

It was a response to all the complaints about a lack of HOA board transparency, as reported by the HOA Information Officer last year.

It specifies which documents – covenants, bylaws, financial statements, board decisions — must be maintained, for how long and how quickly they must be produced by the state’s 8,000 HOAs. And it bars HOAs from demanding the purpose of an owner’s document request.

It lets boards meet and vote via the Internet. But online chats and votes must be documented and available for owner inspection.

And it declares as private HOA records of covenant violation actions.

“In the past, if an HOA cites an owner for say a barking dog violation, that owner will demand to see all the covenant violations actions for barking dogs in the last 30 years,” Rioth said. “They want to argue they are victims of selective enforcement action. This will prevent that selective enforcement defense.”

Now, get your email accounts set up and get written consent before you send out those directories!

Follow this link to the Colorado General Assembly’s final draft of House Bill 1237.

To read the Colorado Home Owners Association Law blog about the new law, click here.

This link takes you to a cheat sheet on the new law with all the details written by the Denver law firm Winzenburg, Leff, Purvis & Payne.

Click here to reach the Homeowners Association registry and complaint website. It is part of the Department of Regulatory Agencies, or DORA, in its Division of Real Estate.

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SMALL HOAS SEEK FAIRNESS FROM COLORADO LAWMAKERS

February 21st, 2010, 12:00 pm by

State Rep. Amy Stephens, R-Monument

 

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

Jan Doran

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.

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