In what has been a slow start to the HOA legislative season, a second bill was introduced in the Senate yesterday. SB 14-140, as drafted, proposes revoking the lien rights of Small or Limited Expense planned communities unless these communities amend the declaration and “opt in” to all of the Colorado Common Interest Ownership Act.
Currently Section 116 of CCIOA contains exceptions for small non-residential associations as well as associations with limited expenses. As these types of associations are exempted from almost all provisions of CCIOA, they have not had to adopt any of the SB 100 good governance policies, including the HB 13-1276 collection policy. This bill amends Section 116 by removing any lien rights the association may have, unless the declaration provides that all of CCIOA is applicable. Since small and limited expense associations have not had to comply with the requirement of adopting good governance policies, this bill seems to be geared at trying to bring these types of associations into CCIOA, to give the owners in the community more protections. If a small or limited expense association chooses not to amend its declaration to have all of CCIOA apply, SB 14-140 will have a drastic impact on the association’s ability to collect assessments in the future.
We will keep you apprised as this bill moves through the system.