Issues with CCIOA Loopholes and Lack of Structure

We reviewed the governing documents of our HOA before closing on our home, and everything seemed straightforward and reasonable. The presence of an HOA wasn't something we cared about either way; we did not seek one out, but we didn't have a choice, either. While we've never had issues with violations, and our HOA's monthly dues are incredibly low, we've found the Board is filled with people who do not treat our neighbors with kindness or care. The Board members tout the myth that "HOAs protect property values" as an excuse to prioritize property over people, and it has resulted in some truly vicious and authoritarian behavior. I have a constant background anxiety that someone on the Board will suddenly decide they don't like something about our home, or that Board member misconduct will create legal consequences resulting in fines passed onto homeowners as "special assessments".

My HOA is exempt from the majority of the CCIOA due to an allowance for small/limited expense communities. Our Board absolutely abuses that exemption and it's clear some of the Board members think this means NO laws apply to them at all. (Note: C.R.S. 38-33.3-116 and 38-33.3-119 grant an exception for Limited Expense Communities, making them exempt from all the statutory requirements in CCIOA, except for Colorado Revised Statutes 38-33.3-105 to 107.) This exemption means most of Colorado's newer legislation attempting to protect homeowner rights does not apply to us. In order for any new legislation to apply to my HOA, it needs to be amended specifically into C.R.S. 38-33.3-105 to 107, and I hope the task force can emphasize this point - or even suggest repealing the exemptions in C.R.S. 38-33.3-116 and C.R.S. 38-33.3-119 entirely - in the report it presents to the general assembly and governor's office.

Limiting HOA authority to shared/common assets only would protect homeowners while allowing communities to retain their autonomy over their communal resources. I hope that, in addition to suggesting restricted HOA authority, the Homeowners' Rights Taskforce can further propose to legislators the creation of increased regulatory structures to help the Boards of HOAs function reasonably and fairly. Board members are volunteers who need to be trained and onboarded just like one would be at any other job. There needs to be some sort of accountability and consequence for HOAs that abuse their power and overstep. Providing the HOA Center with the ability to receive complaints, investigate those complaints, and to have the regulatory authority to issue fines or other consequences for unreasonable conduct would help reign in Board members who are ill-equipped to manage the responsibilities granted to them.

Homeownership is increasingly difficult to achieve in Colorado and I hope the state will step into the responsibility of ensuring HOAs are not creating even more hurdles between its constituents and increasingly scarce housing security.