Section 302 of CCIOA provides associations with a list of powers that may be used even if such powers are not spelled out in the associations’ declarations. If your community is post-CCIOA (created after July 1, 1992) your board may take advantage of all the powers spelled out in Section 302 unless the governing documents specifically prohibit your association from exercising such powers.
On the other hand, if your community is pre-CCIOA (created prior to July 1, 1992) you are not entitled to take advantage of some of these powers unless your governing documents specifically authorize such powers.
Below is a list of powers set forth in Section 302 that may be utilized by both pre and post-CCIOA communities as long as the governing documents do not prohibit such actions:
- Authority to adopt rules;
- Authority to collect assessments;
- Right to hire managing agents;
- Right to become involved in litigation;
- Right to enter into contracts;
- Authority to regulate use, maintenance, and modification of common elements;
- Right to impose fees for use of common elements;
- Right to impose late charges for delinquent assessments and to recover attorney fees if collection action is initiated against delinquent owners;
- Right to impose charges for preparation and recording of declaration amendments or statements of unpaid assessments; and
- Authority to indemnify directors and officers;
In addition to the above, below is a list of powers that may be additionally utilized only by post-CCIOA communities:
- Authority to construct improvements on common elements;
- The rights to acquire, hold, encumber, or transfer personal property of the association;
- Authority to grant easements or licenses over common elements;
So next time you’re wondering whether your association has authority to take a particular action, don’t forget to review the above list in addition to your governing documents.
If you have questions with respect to the above discussion, please contact a HindmanSanchez attorney at 303.432.9999.