• An amendment to Section 123 of CCIOA that would restrict the ability of owner associations to recover attorney fees.  If passed this amendment will:
  • Burden homeowners who pay their assessments and comply with their association’s governing documents with the payment of attorney fees
  • Nullify existing declaration provisions regarding attorney fees
  • Render it uncertain whether even a prevailing association will recover its attorney fees
  • Discourage the use of alternative dispute resolution techniques like mediation and arbitration because if an attorney is used, the association can not recover its attorney fees
  • Compel associations to file expensive and timely lawsuits as a court order is needed before attorney fees may be recovered
  • Cause enormous financial problems for associations

Additional amendments by the Local Government Committee:

• A new provision allowing unit owners to remove the trees and other vegetation surrounding their home for the purpose of fire suppression, as long as such removal complies with the recommendations of the state forestry service or the fire department [§ 38-33.3-106.5(1)(d)];
• A new provision allowing a unit owner to replace flammable roofing materials with nonflammable roofing materials [§ 38-33.3-106.5(1)(e)(I)];
• A new provision allowing an association’s declaration or bylaws to specify reasonable aesthetic standards for the nonflammable roofing materials to be used with the prohibition that the nonflammable materials required to be used exceed the replacement cost of the flammable materials [§ 38-33.3-106.5(e)(II)];
• A new provision requiring associations to make certain documents available to unit owners on an annual basis  [§38-33.3-209.4(2)(a) – (i)];
• A new provision granting associations wide latitude in the methods and means used to make the required documents available to unit owners [§ 38-33.3-209.4(3)];
• A new provision requiring associations to adopt certain policies and procedures [§ 38-33.3-209.5];
• A new provision granting mandatory reimbursement to board members for expenses incurred in taking classes related to association topics [§ 38-33.3-209.6];
• An amendment to the CCIOA provision for the Amendment of Declaration (§ 38-33.3-217) that prohibits as against public policy any association’s declaration to require the assent of less than fifty percent or more than sixty-seven percent of owners to make an amendment to that association’s declaration [§38-33.3-217(1)(a)];
• A new provision that allows associations to meet their obligations to first mortgagees when the declaration requires the approval or consent of the first mortgagees by sending a copy of the proposed amendment by certified mail and printing the proposed notice twice, at least one week apart, in a newspaper of general circulation in the association’s county [§ 38-33.3-217(1)(b)];
• An additional provision to the Senate amendment directing the withdrawal of associations from a merged common interest community provision to provide  further safeguards for the remainder of the merged common interest community [§ 38-33.3-221.5(1)(f)];
• An additional provision to the Senate amendment addressing seller disclosures requiring associations to use best efforts to accommodate a seller’s request for documents that are within the association’s control [§ 38-33.3-223(2)];
• An additional provision to the Senate amendment addressing seller disclosures allowing for the statutory time periods for the disclosures to be altered by mutual consideration [§ 38-33.3-223(3)];
• A new provision requiring that decisions approving or denying architectural requests must be made in accordance with standards set out in the association’s bylaws and may not be made arbitrarily or capriciously [§ 38-33.3-302(3)(b)];
• An amendment to the Senate addition to SB 100, requiring that association books undergo an audit or a review at least once every two years, but requiring an audit when an association has annual revenues or expenditures of at least two hundred fifty thousand dollars and an audit is requested by at least one-third of the units represented by the association [§ 38-33.3-303(4)(b)(I),(II);
• An amendment to the Senate amendment concerning maintaining attorney-client privilege, which gives the board of directors the discretion whether or not to make legal advice received public or to retain it under the attorney-client privilege [§ 38-33.3-308(4.5);
• An amendment to the Senate amendment limiting the amount associations may charge for copying documents to twenty-five cents, which allows associations to charge the actual cost of copying association records [§ 38-33.3-317(3)];
• A provision changing the language of the provision and the disclosure required to be signed by a buyer acknowledging the responsibilities inherent in buying property in a common interest community that was included in the Senate version of SB 100 [§ 38-35.7-102];
• A definition of “clean claim” to mean a claim for damage in which the street address, a general description of the type of damage, and access is given for the inspection of internal damage has been provided to the insurer [§38-33.3-10-4-110.8(b)];
• A new provision requiring “clean” insurance claims to be paid, denied, or settled within thirty calendar days after receipt of the claim by the insurer [§ 10-4-110.8(4)(a)];
• A new provision requiring that, in the event insurer refuses to pay a claim on the basis that the damage was caused by another, the insurer must make best efforts within fourteen calendar days to contact the party deemed responsible and relay the relevant facts to that party [§ 10-4-110.8(4)(b); and
• A provision making Section 1 (xeriscape provisions) and 2 (displaying the American flag, posting political signs, parking of emergency vehicles, and fire suppression provisions) effective on passage, and the remainder taking effect on January 1, 2006.