As a number of the complaints received by the Division of Real Estate's Homeowner Association Office related to transparency of associations, the Colorado legislature attempted to clarify what constituted an association record. HB 1237 seeks to resolve the confusion in reference to what is or is not an Association record. While nearly dying as a result of a large back load of bills in the House, HB 1237 was ultimately passed and sent to the Governor for signature. If signed, this legislation will amend portions of Section 317 of the Colorado Common Interest Ownership Act to clarify what records must be disclosed to requesting who request an inspection. Additionally, the bill prohibits withholding of records by removing the requirement that the request be for a proper purpose.
As this bill was overwhelmingly approved by the legislator, Governor Hickenlooper is expected to sign this law to become effective January 1, 2013. In preparation of this change, Associations may need to update their Inspection of Records policies accordingly.