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SB 100 Passes in the Senate
SB 100 Update On Monday, February 28, 2005, the Senate passed SB 100 on a 21-14 vote. There were a number of amendments that passed and are now a part of SB 100. The bill now goes to the House where it has been assigned to the Local Government Committee and will go through a similar process as it did in the Senate.
SB 100 Final Senate Version SB 100 in its final Senate version includes the following amendments from it original form:
the provision prohibiting the waiver of homestead rights in association declarations has been deleted thereby leaving judicial foreclosure as a viable option to collect unpaid assessments;
the grandfather clause for covenants regulating xeriscaping has been reinserted, thereby limiting the applicability of this provision to new declarations only;
the current xeriscaping provision was amended to allow Boards to take action against homeowners who allow their landscaping to die except in drought conditions;
the provision which mandated that associations allow utility trucks up to 20,000 lbs to park on their streets has been amended to include only vehicles weighing 10,000 lbs. or less for volunteer firemen, emergency service providers, and peace officers;
a provision allowing political signs to be displayed on walls and sidewalks was removed and replaced with a provision allowing a political sign to be displayed on the unit owner's property or window of the residence. In addition, a provision allowing one sign per political office or ballot issue was added:
the provision that mandated annual financial audits has been amended to require an association to have an audit or a review using generally accepted accounting principles at least once every two years;
the prohibition against one unit owner holding more than one proxy has been deleted
a provision which encourages but does not make mandatory the use of alternative dispute resolution methods has been inserted;
a provision directing the procedures for the withdrawal of a common interest community from a merged or consolidated common interest community has been inserted;
a provision that charges that any managing agent, employee or any other persons acting on behalf of an association will be subject to the article to the same extent as the association itself has been inserted; and
a provision allowing associations to enter into escrow agreements with unit owners' mortgage companies to combine assessments with mortgage payments has been inserted.
SB 100 still includes the following provisions:
- Boards would be required to allow owners to address the board before the board takes formal action on any items under discussion (Section 9);
- Notice (via email "if available") of regular and special board meetings must be provided at least 24 hours before the meeting to any owner who requests and must be physically posted in a conspicuous place, to the extent that such posting is feasible and practicable (Section 9); and
- Associations and management companies can not charge more than twenty-five cents per page for copies of association records (Section 13).
To view the final Senate version of SB 100 in its entirety, please click here.
To obtain a list of the members of the House Local Government Committee, please click here.
O&H's Position on Final Senate Version of SB 100
While many of the unacceptable provisions of SB 100 have been deleted via the various amendments to the bill, Orten & Hindman still opposes the bill. In its current form, we believe that SB 100's approach to dealing with the relatively few identified abuses is still misguided. As we have stated many times before, we believe the problems that exist are best addressed through disclosure and education of owners and board members, not through the micromanagement of association operations and a cookie cutter, one-size-fits-all approach.
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Upcoming Classes:
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BOD 202-Governing Documents and Statutes: What You Need to Know Wheat Ridge Office April 13, 6:00pm - 9:15pm
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Community Associations Institute
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The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org
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