Community E-ssentials

May 2005 NUMBER 42   Volume 4 Issue 6  
In This Issue
SB 100 Update as of May 9: Amended SB 100 Passes!
Investing Association Funds: Be Reasonable and Prudent
Dispensing with Formalities: Tips for Expediting Small Meetings
Plan B: The Newest Wave in Avoiding Construction Defect Lawsuits
Case of the Month: Association Recovers Attorney Fees on Appeal
Q & A
Past Issues
NUMBER 41
April 1, 2005
Vol. 4 Issue 5
SB 100 Update
March 31, 2005
URGENT CALL TO ACTION
March 30, 2005
NUMBER 40
March 1, 2005
Vol. 4 Issue 4
Call to Action
February 18, 2005
NUMBER 39
February 1, 2005
Vol. 4 Issue 3

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May Survey

Should Governor Owens sign SB 100 into law or veto it?

Sign it

Veto it

Not sure

If signed into law, will SB 100 cause or solve more problems than currently exist?

Cause more problems

Solve more problems

Not sure

April Survey Results
Should boards be legally required to have a homeowner forum during each board meeting where owners are permitted to address the board?

Yes, but with reasonable limits on length of time    69%
No    29%
Not sure    2%


Should boards be legally required to allow owners to address the board prior to the board voting on any issue?

Yes, but with reasonable limits    47%
No    47%
Not sure   6%

 
SB 100 Update as of May 9: Amended SB 100 Passes!
Conference Committee Amended Superlien and Attorney Fee Provisions

Introduced in the State Senate in the beginning of the 2005 legislative session, SB 100’s journey through the Colorado General Assembly is now complete.  With the re-adoption of the conference committee report by the House of Representatives on May 6 and the Senate on May 9, the bill now goes to Governor Owens who has the option to sign the bill into law or veto it.  At this time, indications are that he will be signing SB 100 into law.   We will continue to keep you updated as more information becomes available.  Please visit our website at
www.ortenhindman.com for additional background information on SB 100.  Below please find summary of the SB 100’s recent history.
[FULL STORY]
 
Investing Association Funds: Be Reasonable and Prudent
The board of a homeowners association wants to exercise its discretion to invest a portion of the association’s reserve funds to make the money “work” for the association. However, since the declaration is silent on how this may be done, the board is unsure of how to proceed. How should the board exercise its discretion to invest reserve funds?
[FULL STORY]
 
Dispensing with Formalities: Tips for Expediting Small Meetings
The agenda for the board meeting sits in front of you while you patiently wait for the debate to end concerning whether the motion to discuss the community’s landscaping needs a seconding motion.  Although you want to conduct association business properly, it strikes you that your five-person board of directors may not need to adhere to the strict rules of parliamentary procedure.  Chances are you are correct in this common sense observation as even parliamentary books differentiate between the procedures needed for successfully running large and small meetings.  Parliamentary procedure provides a method to run large meetings by regulating who can talk, when, for how long, and on what topics.  However, keeping order for smaller meetings most likely does not require the same type of formal procedures. 
[FULL STORY]
 
Plan B: The Newest Wave in Avoiding Construction Defect Lawsuits
A new community association is beginning to discover construc­tion defect problems. After each rain, the common areas flood and become swampy. The asphalt has become cracked and spotted with potholes. Roofs and windows leak. Garages flood. Some homeowners have complained about drywall cracking from expan­sive soils. One homeowner's balcony is so deteriorated that his foot went through it. To make matters worse, the builder has stopped returning phone calls for repair requests, telling homeowners and the board they are outside of the one-year warranty period. The board members, at their wits end, believe their only remedy is to bring a construction defect lawsuit against the builder.
[FULL STORY]
 
Case of the Month: Association Recovers Attorney Fees on Appeal
A homeowners association denied approval to a proposed plan submitted by homeowners to expand their townhouse.  The disgruntled homeowners sued, alleging the association had acted arbitrarily and capriciously in denying approval for the expansion.  The trial court found for the association, holding that the association had acted reasonably and in good faith in refusing to approve the homeowners’ expansion plans.  Nevertheless, the trial court denied the association’s motion seeking attorney fees and costs under section 38-33.3-123(1) of the Colorado Common Interest Ownership Act (“CCIOA”).
[FULL STORY]
 
Q & A
Each month we answer legal related questions asked by our readers.
[FULL STORY]
 
The University
Upcoming Classes:

School of Association Leadership

BOD 101 - Success Basics for Board Members
Fort Collins Office
September 10, 9:00am - 12:15pm

BOD 203 - Enforcement of Covenants and Rules
Wheat Ridge Office
September 14, 6:00-9:15pm

Click here to register
Manager Lunch Forums

Contract Law and the Manager
Wheat Ridge Office
June 2, 12:00pm - 1:30pm

Click here to register

 
Orten & Hindman, P.C.
To learn more about O&H's services, visit our website at www.ortenhindman.com
 
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Community Associations Institute
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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Published by Orten & Hindman, P.C.
Copyright © 2005 Orten & Hindman, P.C.. All rights reserved.
These materials have been prepared by Orten & Hindman, 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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