Allocated Interest Calculation for an HOA
Allocated Interest in an HOA:
Background:When a Condo HOA is being developed, a developer generally hires an attorney to write a Declaration for the to be HOA.In that Declaration an important aspect is a definition of “Allocated Interest” for the condo unit owners. (this is how HOA Dues are based)As you likely know the definition of Allocated interest is the square footage of a specific unit divided by the total square footage of the entire HOA Complex square footage.The condo unit square footage is the developers plans for the size of a specific unit. It is used in the marketing of the property etc.
Prior to a certificate of occupancy for the condo units, a county TAX Assessor must by Colorado Law, hire a professional surveyor to establish a county tax based square footage of a condo unit. As life turns out likely over 90 % of the developers unit square footage is larger than the final condo unit size as measured by the Tax Assessor surveyor.
Issue:A county tax is based again by Colorado law on the county Tax Assessor's unit square footage having nothing to do with the developers pre built unit square footage.If a Condo HOA wishes to have the HOA Allocated Unit Interest described matching the county Tax Assessor’s square footage (and what the unit is paying in county taxes not an incorrect developer square footage) the HOA must have 100% of the unit owners approve the change from using the developers square footage in the original declaration. (Of course near impossible these days)
What do I want:I would like the the Colorado Legislature to pass a bill that mandates that a Condo HOA Allocated Interest definition only use the county Tax Assessor’s square footage that the unit owner taxes are based upon as the nominator of the Allocated Interest calculation. EG. County Tax Assessor Unit Square Footage / Total Condo HOA Units Square Footage.
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Pursuant to HB23-1105, this project has now concluded. On behalf of the Department of Regulatory Agencies and the Division of Real Estate, thank you for your interest and participation.