Community E-ssentials

January 2006 Issue 50   Volume 5 Issue 1  
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CONTENTS
New Name, New Partners, New Building, And Our Continuing Dedication To Building “Strength In Association!”
Doing The Right Thing: Making Unwelcome Changes For Your Association
Your Legislative Information Has A New Address – www.hoalegislate.com
What Is A “Common Interest Community" Under CCIOA?
Under-Insurance A Looming Problem For Associations
Questions & Answers
Questions & Answers

Question: Does the board have the authority to go into an executive session to discuss matters pertaining to an association employee, regardless of the employee’s stated preference that the matter be discussed openly?
 
Answer: Yes. A board has the sole discretion to decide whether or not to go into an executive session for a number of statutorily allowed reasons.  One of the reasons allowed is to discuss matters pertaining to an association employee. [Click here] for a full list of reasons that allow a board to go into executive session. However, in the absence of a compelling reason to go into an executive session, the board should grant the employee’s request and hold the discussion in an open meeting.
 
Question: Does election of board members using the parliamentary procedure of acclamation, as opposed to a ballot, still constitute “voting,” placing such an election within SB 100’s requirement for secret ballots to be used when voting for board members?
 
Answer: Yes. Robert’s Rules of Order states that, in addition to ballots, votes may also be cast by a show of hands, yeas and nays, or general consent. Therefore, acclamation is a means of voting and is therefore subject to SB 100’s secret ballot requirement.
 
Question: What laws apply to common interest communities in Colorado?
 
Answer: Common interest communities in Colorado are governed by the Colorado Common Interest Ownership Act (“CCIOA”). In addition, regardless of whether or not an association is a common interest community as defined by CCIOA, the following list, although not exhaustive, provides other laws an association should be aware of.
 
If an association is organized as a nonprofit (as most associations are), an association must comply with the applicable provisions with the Colorado Revised Nonprofit Act. Federal laws such as the Fair Housing Amendments Act (“FHAA”), the Bankruptcy Act (places a stay on collection efforts once bankruptcy is declared, including attempts to collect delinquent assessments), and the Federal Communications Commission’s Rule 1.4000 (stating that associations cannot prohibit or require approval to install satellite dishes on units and limited common elements) will also regulate an association. In addition, associations must comply with any local ordinances concerning such subjects as towing, building restrictions, and noise restrictions.
 
Question: My board of directors spends thousands of dollars annually to fund social committee events. In addition, this year they spend thousands more dollars for Christmas lights, which were not included in the budget. Is there a way that we, as homeowners, can stop the board from spending HOA funds on items we believe are unnecessary?
 
Answer: The answer to the above question turns on whether your association’s governing documents authorize these expenditures.
 
Assuming that your association’s governing documents do not authorize such expenditures for social events and Christmas decorations, the homeowners in your association have the right under the Colorado Common Interest Ownership Act (“CCIOA”) to file a lawsuit against the board. This lawsuit would seek a court order directing the board to cease making such unauthorized expenditures.
 
However, if your association’s governing documents do authorize such expenditures, the authority to make such expenditure decisions rests with the board.  In this case, the homeowners’ only recourse will be to go through the democratic process of voting new members onto the board of directors who believe that the association’s money would be better used in another manner.


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February 2
Increasing Fiscal Viability: 
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12:00 - 1:30 PM

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Suite 300
(1 mile north of I-70)



 

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Published by HindmanSanchez P.C.
Copyright © 2006 HindmanSanchez P.C.. All rights reserved.
These materials have been prepared by HindmanSanchez P.C. for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel. Please do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact Tom Hindman or Loura Sanchez.
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