Association Policies
Colorado requires every homeowners and condominium association to adopt a set of written governance policies, and many associations either never adopted them or adopted forms which no longer match the law. Policies are also where an association’s day-to-day rules belong, since the board can adopt and revise a policy without amending the Association Declaration.
The Required Governance Policies
Under the Colorado Common Interest Ownership Act (“CCIOA”), an association must adopt responsible governance policies on each of the following:
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collection of unpaid assessments;
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conflicts of interest involving board members;
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the conduct of meetings;
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enforcement of the covenants and rules, including notice and hearing procedures and a schedule of fines;
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inspection and copying of association records;
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investment of reserve funds;
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procedures for adopting and amending policies, procedures and rules;
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procedures for addressing disputes between the association and owners; and
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the association’s reserve study, including whether one will be done and how it will be funded.
Several of these policies carry particular weight. A collection policy that does not follow CCIOA’s required steps (e.g., notice, a payment plan offer and limits on when the association may foreclose) can prevent the association from recovering what it is owed. A fine imposed without the notice and hearing that the enforcement policy requires can be overturned.
Rules and Regulations
Beyond the required policies, associations adopt rules on rentals and short-term rentals, parking, pets, trash and wildlife, architectural review, and use of the common elements. Such rules must be consistent with the declaration and with CCIOA, which limits what an association may restrict (e.g., flags and political signs, fire mitigation, energy efficiency measures and electric vehicle charging).
What Elkhorn Law Does
We prepare a complete set of governance policies tailored to the association, review existing rules for consistency with the declaration and current law, and advise the board on adoption and on giving owners notice. We typically update policies together with the Association Bylaws, and we advise boards on applying the policies when a collection, records request or enforcement matter arises.