Board Basics 101: What Every Board Member Needs to Know
Download Board Basics 101: What Every Board Member Needs to Know
I. OVERVIEW OF THE BASICS
“Community Association” is the generic term for communities that are created pursuant to recorded covenants or other documents that create an association of the unit or homeowners. The term community association includes condominiums, homeowner associations and housing cooperatives. These are typically organized as non-profit corporations.
- Condominiums. A condominium is a form of property ownership, not architectural style. There are two distinct aspects to a Condominium:
- They are subject to both the Colorado Condominium Act – CRS. § 38-33-101 et seq and the Colorado Common Interest Ownership Act C.R.S. § 38-33.3-101 et seq.
- The association does not own land – common areas are owned by all unit owners in common based on a percentage established in documents.
- Homeowners Associations. Homeowners Associations are generally subdivisions of single-family attached or detached homes. There are three distinct aspects to homeowners associations:
- They may not automatically be subject to any specific real estate laws.
- They are subject to the Colorado Common Interest Ownership Act if the community fits the definition of common interest set forth in C.R.S. § 38.33.3-103.8.
- The association owns the common areas and each owner has an easement to use the property.
- Cooperatives. In a Cooperative, the members purchase shares of stock in a corporation which owns all property. Stock ownership entitles members to lease a unit. These are not common in Colorado.