Breach of Fiduciary Duty & Breach of Covenants

Out HOA is older-built in the late 70’s (Fort Collins) and we were Larimer County until the 2015 City Annexation. Overall, our HOA has been relatively good about transparency of HOA documents, meetings etc. What they fail at miserably is landscape maintenance. The primary purpose of our Assessments is maintenance of Common Areas. We only have landscaping, and a few structures-fences and asphalt trails. No building type maintenance.

Legally, there should be ‘good faith’ and ‘equitable maintenance’ of all Common Areas but this is not the case here. We literally have a North (124 homes) vs South side (129 homes) with major discrimination between the two. The South side homeowners are deemed ‘less than’ and treated as such. Our dues & reserves are sufficient to properly maintain all the Common Areas but the greenbelts on the South side are not due to: 1/not in the public view; 2/ just a bunch of renters; and 3/ we’re not spending money on ‘those’ people. Meanwhile they fully maintained private property for 28+ years instead. Legal action did stop the private property maintenance. We could literally pay a portion of our dues to have the City of Fort Collins do the landscape maintenance where ALL areas are treated the same-no discrimination.

Even with HB-1137, it is easier to focus on Violations on individual property than take care of the Common Areas. Many violations are hypocritical when comparing the condition of Common Areas. That and the ACC requirements that seem mostly un-necessary; i.e.-paint, roof & fence replacements. We have no ‘tract type’ homes-all very individual lots and diverse buildings/lots etc.-which some of us like.

HOA’s are a microcosm of our society with much finger pointing and criticism of others with minimal caring & compassion that most folks are doing the best they can with the resources they have. HOA History being that they began in preventing non-white, non-Protestant people from moving into certain neighborhoods. The Fair Housing Act of 1968 stopped that but the overall sentiment of judging others still prevails. There is still a bit of NIMBY against some people moving in/living in by some homeowners.

The theory of having Communities govern themselves makes sense on paper. The Reality of what actually happens is pretty much the opposite. Often the BODs prefer bossing people around wanting things their way. Most homeowners are apathetic until an issue affects them personally. Legal recourse is expensive and ineffective-IF you can find legal counsel willing to take on the political/emotional challenge. Our HOA is known to ignore Attorneys if they don't agree.

Without ‘teeth’ any legal action or state bills are useless. I think HB-1137 is a good step forward. So many violations are petty & cruel. They are an easy justification for dues spent instead of doing proper and equitable maintenance of Common Areas for ALL residents to enjoy.

Should DORA be funded & staffed to take this on? Maybe not. Counties may be a better option to fund & staff as they are closer to the Communities they would serve. Create mediation centers with impartial Attorneys as mediators that have legally binding results and real consequences of not abiding by the decisions. Maybe funding through county tax dollars…and fines for negligent HOA’s?

It's easy to say don’t move into an HOA, but that can be virtually impossible in Colorado. Plus, they change over time with different BOD’s, management companies, homeowners and changing economy & political attitudes. Homeowners should not have to be on the BODs to be treated fairly & equitably. Thank you for listening.