1.      My association’s board of directors often uses email to communicate with each other in between board meetings.  Is this allowed?  In addition, a local newspaper, after having been contacted by some unhappy owners, has requested that it be added to the distribution list. Must this be done?
 
Association board members may use email to discuss community association issues informally. Using this method of communication to share information is akin to a board going into a “working session.” A working session is not considered a board meeting as it is not called to order and no formal actions are taken during its course.  Under Colorado law, only board meetings must be open to attendance by owners.  Therefore, since communication informally by email is not a “board meeting,” owner inclusion is not required. Although boards have no statutory obligation to include owners on the distribution list, including interested owners reinforces trust and good relations between board members and owners.
 
Associations do not have to comply with media requests to be included on association distribution lists. Although the media has the right to access public records, it has no general right to access private records.  Any association emails that may be considered “association records,” fall within the category of private records.  The association retains the discretion over whether or not to release these private records to the media.  
 
2.      My association’s governing documents prohibit overnight parking for any recreational vehicles or boats.  However, the county laws that address parking do not restrict this.  May we still enforce our governing documents or do the county laws supersede them? Do the provisions on parking in SB 100 affect our ability to restrict the overnight parking of recreational vehicles and boats?
 
Community associations may not be less restrictive than their governing local law.  However, community association covenants and rules restricting parking activities can be, and usually are, stricter than local regulations.  This gives greater protection to owners and provides additional enforcement mechanisms for activities the community dislikes or finds offensive. Therefore, your association can enforce its parking restrictions.
 
SB 100 requires associations to make certain changes to how they operate.  However, it does not specifically address recreational vehicle parking. Parking restrictions regarding recreational vehicles such as boats and campers within an association’s governing documents remain valid and enforceable. 
 
3.      I understand that SB 100 has several exemptions for “timeshare” communities.  How do I know if my community is considered a “timeshare” and is exempted from these provisions?
 
A timeshare is a type of real property ownership, often used by people to acquire vacation property in resort areas like Vail and Aspen.  Both the Condominium Ownership Act (“COA”) and the Colorado Common Interest Ownership Act (“CCIOA”) govern the development and operation of timeshares within the state. COA provides for two types of timeshares – “interval estate” and “time-span estate.  An interval estate is marked by the passing of a unit’s actual title from one owner to the next on a regular fixed schedule.  The owner having title enjoys exclusive rights to the unit. In contrast, owners of a time-span estate always share title to the unit but alternate the right of exclusive possession and occupancy of the unit.  Therefore, if your ownership of your unit is not marked by circulating periods of ownership and right to possession and occupancy, it is not a timeshare and is not exempted from SB 100. 
 
4.      Our association is contemplating some expensive redecorating for the clubhouse.  The association’s articles of incorporation state that we were incorporated as a nonprofit organization.  As a nonprofit organization, are we eligible to apply for tax exempt status to avoid state and local sales taxes on the materials used?
 
Although your articles of incorporation created your association as a “nonprofit organization,” this nonprofit status does not address whether your association must file income tax returns or pay sales tax. The Colorado Nonprofit Act (“Act”) governs the creation and operation of nonprofit corporations. Choosing to create a nonprofit corporation under the Act defines the structure and governance of the resulting nonprofit corporation, not its tax status.
 
To obtain tax-exempt status, an association must apply and qualify as a tax-exempt entity with the United States Internal Revenue Service (IRS) under section 501(c)(4) of the Internal Revenue Code (IRC). As a general rule, the typical condominium or homeowners association does not qualify for tax exempt status.
 
Unless the association obtains a ruling from the IRS that it meets the requirements for tax-exemption under section 501(c)(4), it must file a federal tax return and pay sales taxes.  For more information on whether your association could qualify for tax-exempt status, contact your independent CPA or financial advisor.