Ideas for Task Force Consideration

Thank you for your hard work on the HOA task force. Based on the directives of HB23-1105, your committee discussions, homeowner experiences, and expert testimony, please accept the following ideas for your consideration:

EDUCATION

• Review Colorado HOAs which are non-compliant with the registration and renewal process. Impose fines/penalties for failure to register or renew. Consider increasing the registration fee.
• Create an outreach program in DORA HOA Center along with the registration process encouraging Board of Directors to attend an initial one-hour information session reviewing DORA HOA, CCIOA, major responsibilities.
• Create an outreach program in DORA HOA Center encouraging Community Association Manager education and certification.
• Require a brief fact sheet explaining HOAs and their advantages and disadvantages when a contract to buy in an HOA community is initiated.

COMMUNICATION

• Empower within DORA HOA Information and Resource Center an Ombudsman office to improve communication to resolve disputes and questions.
• Require all homeowners in HOAs and Community Association Managers to supply a current preferred method of communication to enable the DORA HOA Ombudsman office to establish assistance to resolve issues.
• In situations not resolved by the Ombudsman office, consider a requirement of a referral to the Colorado Judicial Branch Office of Dispute Resolution which has affordable access to qualified mediators who specialize in issues related to common interest communities.
• Establish a Resource Office in DORA HOA Center for homeowners with unpaid dues and fines to coordinate assistance. Require referrals from HOAs and CAMs to avoid foreclosures.

FINANCIAL RESPONSIBILITY

• Inadequate maintenance and replacement of property can result in an unsafe environment, higher repair costs, and unexpected assessments that can burden homeowners and create a cash-flow crisis.
• Require all HOAs to address the need for reserves with the ownership at least once a year, and at a minimum, establish a reserve target of at least 25% of their annual budget.

SAFE AND EQUITABLE ENVIRONMENT

• Discussion revolved around unintended consequences of HB22-1137. Review the effects of this bill on the fair treatment, safe environment, and a remedy system for violations to protect homeowners in Colorado HOA communities. Consider immediate remedy of health and safety violations and escalating fines in some situations. Add an initial grace period to attempt communication with the owner regarding delinquency prior to posting the notice on the door.