At the beginning of the legislative session, it was widely rumored that the session would be relatively calm for HOA related bills. This has, at least to date, remained true with only five related bills being introduced. Out of the five, four of the bills have already come to a resolution. The breakdown is as follows:
HB 14-1254: The HOA Disclosure Bill. After much debate and discussion, the bill as finally submitted reflects requirements and additional information to be provided to members within a community regarding management company fees. The bill also requires management companies to disclose other sources of income earned by the company that arise from their position as the community manager. This bill has passed out of the House and is being considered in the Senate and has wide support from industry professionals, including CAI, law firms and the Board of Realtors. We expect this bill to pass as drafted.
HB 14-1125: The Email Bill. This bill corrects an oversight in HB 12-1237 which rephrased Section 317 of the Colorado Common Interest Ownership Act (CCIOA). As amended by HB 1237, Associations were prohibited from disclosing email addresses of owners, even if the owner provided consent and authorization to disclose. Such prohibition prevented Associations from effectively creating community directories. HB 14-1125 as proposed provides owners the opportunity to consent and authorize Associations to disclose email addresses and phone numbers of the individual owners. If signed, the bill becomes effective on August 6, 2014.
SB 14-140: The Limited Purpose Community Bill. This bill, as originally presented prevented a “limited purpose community”, as defined by CCIOA, from enforcing its lien rights unless the Association amended its’ declaration to adopt all of CCIOA. SB 14-140 never completed its way out of committee and has been postponed indefinitely.
HB 14-1165: Retainage Bill. This bill, as proposed, was intended to restrict the amount of retainage that could be held in commercial contracts to ensure performance of the obligations of the vendor. HB 14-1165 never completed its way out of committee and has been postponed indefinitely. The bill could have had a severe negative impact on community associations, so the postponement is good.