Colorado Senate Bill 05-100

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Colorado Legislators Introduce a Homeowner Association Bill (SB05-100)

On January 17, 2005 Senator Bob Hagendom and House Representative Morgan Carroll introduced Senate Bill 05-100 , a Homeowners Property Rights. It has been assigned to State, Veterans & Military Affairs Committee in the Colorado Senate.

Here is a summary

A BILL FOR AN ACT CONCERNING INCREASED PROTECTION FOR HOMEOWNERS. 101

First Regular Session
Sixty-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 05-0134.01 Duane Gall SENATE BILL 05-100
Senate Committees - State, Veterans & Military Affairs
House Committees

SENATE SPONSORSHIP - Bob Hagedorn

HOUSE SPONSORSHIP - Morgan Carroll

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Prohibits the homeowners' association (HOA) of a common interest community from adopting rules that prevent a homeowner from:

• Displaying an American flag or political sign; or
• Parking an emergency vehicle in the community, if the homeowner is employed by a fire department or other provider of emergency services and must have ready access to the vehicle as a condition of employment.

Invalidates any new or existing covenant or condition that prohibits xeriscape or requires landscaping to include turf grass.

Limits the availability of foreclosure to an HOA seeking to enforce a lien for fines and other charges imposed under community covenants.

Invalidates covenant provisions that purport to waive a homeowner's rights under homestead laws.

Requires the buyer of a home in a community subject to an HOA to receive notice and documentation regarding the ability of the HOA to place a lien on the property for unpaid assessments and an up-to-date accounting of the HOA's financial condition including any unpaid assessments, fines, or known covenant violations applicable to the property. Requires the HOA to furnish information on unpaid assessments to an escrow agent upon request. Makes any such disclosure to a licensed escrow agent binding on the HOA.

Requires the HOA to furnish to all homeowners in writing, at least once per year:

• Current contact information for the HOA and its management company or agent; and
• The results of its most recent annual financial audit, which must be conducted by a certified public accountant.

Supersedes any provision of the bylaws or corporation statutes that would require a specific number or percentage of homeowners to join in any lawsuit challenging corporate action by the HOA.

Enacts open meeting provisions for the executive board of the HOA. Requires the board to give homeowners a reasonable opportunity to speak before taking action on a community issue.

Enacts conflict-of-interest rules for board members. Invalidates any action taken, and any contract entered into, in which a board member has an undisclosed conflict of interest.

Requires 90 days' written notice to all homeowners before community assets may be sold or encumbered.

Enacts open records requirements for books and records of the HOA. Allows the HOA to charge a reasonable fee, not to exceed 25¢ per page, for copies. Requires that a records request be made in good faith, for a proper purpose, and adequately describe the records that are sought. Exempts privileged information such as that pertaining to pending litigation or personnel matters.

When a homeowner submits a claim concerning injury occurring on or damage to the owner's property:

• Prohibits the insurance carrier from denying coverage on the basis that the injury or damage actually occurred on or to a third party's property;

• Requires the insurance carrier to promptly settle the owner's claim without considering whether the responsibility for payment should be assumed by a third party; and

• Allows the carrier to pursue a subrogation claim against such a third party after making the the settlement.

• Specifies that if the carrier's subrogation claim is successful the homeowner must pay the amount of the settlement to the proper beneficiary.