HOA Homeowners' Rights Task Force

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  Clear And Direct Law Emforcement Needed URGENTLY!

  by Angel888, over 2 years ago

  Apparently HOA board members and property managers can break the law with complete impunity in Colorado. In my case, nearly one year ago another homeowner and I witnessed a board member silently mark a stack of ballots in the corner of a room. Those ballots were then handed to an employee of our property management company to count at the back of the room and out of view of homeowners assembled for the vote and meeting, and another employee of the property management company gleefully declare that a $58K assessment for an unnecessary paint job had passed, after homeowners had... Continue reading

  Apparently HOA board members and property managers can break the law with complete impunity in Colorado. In my case, nearly one year ago another homeowner and I witnessed a board member silently mark a stack of ballots in the corner of a room. Those ballots were then handed to an employee of our property management company to count at the back of the room and out of view of homeowners assembled for the vote and meeting, and another employee of the property management company gleefully declare that a $58K assessment for an unnecessary paint job had passed, after homeowners had rejected it the previous November. Because that behavior looked so shady and every homeowner who I knew at the time was against the special assessment, I contacted DORA that very evening for advice. Since then, the property management emailed homeowners with a vote count, and more homeowners than the number stated in the election results have filed complaints with the AG attesting that they voted against the assessment. Homeowners were repeatedly and emphatically told by the HOA/property manager that the paint job was listed in a reserve study; it is not. One paint company was pushed on homeowners, to the point that their local rep attended a meeting to pitch the job. The work order explicitly included power washing which was not performed at all. Because the painters essentially painted over dirt, the homeowners advocated for a refund. The HOA told them to take it up with the painting company directly. After doing so, a $2K refund for the entire job was provided by the paint company, and the HOA announced that they intend to keep the money. They have issued no refunds to homeowners of any sum. I requested financial records of the transactions six months ago and none have been provided. I have also requested voting records and those have not been provided. Further, in our community, there are bi-monthly meetings in our calendar. After the paint debacle, the board cut all homeowners off the meeting call in August, and did not hold those meetings in October nor December. Our DA's office instructed us to contact the State AG. Even after numerous complaints filed with them, no one is being held accountable to our knowledge. I feel like a complete fool for working 2-3 jobs simultaneously during the past year, when apparently all that I needed to do for a large sum of money was to join an HOA board, steal from my neighbors and rest assured that unless they could pay an attorney $750 an hour, there would be ZERO consequences. In 2022 this same group claimed that the community voted for a fee increase after rejecting it on the first vote. In 2023 they got away with taking $58K for a paint job that was little more than a company hurriedly painting over dirty surfaces, keeping the little refund given by the vendor and failing to provide financial records. For 2024, you guessed it, after the community rejected a fee increase above CPI, per our covenant, in November of 2023, the HOA and property management are forcing another "special" election on February 5th, to raise monthly fees by 25%. I do apologize for my now acidic tone. This journey began as a newly licensed professional in the housing industry for whom the mantra 'See something, say something." was drilled into licensing requirements. Apparently that's a cruel, hollow joke. Until there is a clear path for homeowners when disputes like this arise, affordable advocacy for homeowners and CRIMINAL consequences for blatant violations of covenants or state law, Colorado will be a haven for people devoid of ethical standards. I am certain that the abuse that my community is enduring is not unique, and I implore members of the task force to give homeowners needed relief and protection from predatory, unscrupulous and, as of now, completely unaccountable HOA board members and property managers. In closing, a common street criminal who robs a convenience store goes to prison, and I believe that the outcome should be no different for those who steal on paper. One's home is sacred. Being violated within it is the most insidious of crimes. Thank you for providing this forum and for your consideration to all involved parties.
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  Thank you

  by whoownsmyhome, over 2 years ago
  I want to thank those brave individuals (save one) who came forward, under the most difficult circumstances to speak about their frustrations and difficulties with their HOAs. Three minutes is not enough time to identify and elaborate on situations that don't occur in the moment and occur over time. I believe the three minute rule was established to prevent the homeowner to fully present the problem and identify reasonable solutions. It was made even more difficult with the interruption of the timekeeper. Most people are not as experienced at public speaking as the task force members. The unfortunate disclosure of... Continue reading

  I want to thank those brave individuals (save one) who came forward, under the most difficult circumstances to speak about their frustrations and difficulties with their HOAs. Three minutes is not enough time to identify and elaborate on situations that don't occur in the moment and occur over time. I believe the three minute rule was established to prevent the homeowner to fully present the problem and identify reasonable solutions. It was made even more difficult with the interruption of the timekeeper. Most people are not as experienced at public speaking as the task force members. The unfortunate disclosure of the Lexis material should require an apology. It wasn't necessary. Thank you, whistleblowers for your perseverance and dignity.

  None of the homeowners woke up one morning and decided it was a good day to take on the HOA, management companies or attorneys. There is a survey on this site, ~2/3 of respondents have some dissatisfaction. This is not Candide's "best of all possible worlds". Let me describe my past month. On December 1, 2023, I received an email from the property management company of an increased assessment (~double). Even the most superficial language of PROPOSED was missing. On that date, my understanding of what my rights were under the CCIOA, Governing Documents and Bylaws were abandoned. Over the weekend, the discussion of what homeowners could do took place on social media. Apparently, the property management company had told some homeowners a "quorum" could overturn the budget (yes, I have screenshot). This is not true and an 80% veto would be required. By December 5, 2023, the property management company had reconsidered and notice was given for an annual meeting and budget ratification to take place on the Thursday before Christmas. The physical posting of the assessment change and meeting gave neither the time or location. A proxy was included with the notice. The proxy is a general proxy. The following week, December 12, 2023, ANOTHER notice was sent out. The location of the meeting had changed but EVERYTHING else was CORRECT and ACCURATE! This of course was not true. The management company had changed the term of any elected Board Member to THREE years instead of the term given within the Governing Documents. Again the General Proxy was included to be sent TO the management company.

  On December 14, 2023, the management company sends yet another email. For those who cannot attend the annual meeting in person (like myself), the annual meeting will be available by MS Teams. HOWEVER, as a participant on MSTeams, the participant will NOT be counted as present and WILL NOT be allowed to vote. I might mention that there is nothing in the Governing Documents, Articles of Incorporation or Bylaws that prohibit virtual attendance OR voting. In fact, those documents anticipated the use of virtual meetings and permitted voting.

  On December 21, 2023, I attempted to join the annual meeting by MSTeams. Once again, I have the screenshots. I was not permitted to join the room until about 30 minutes after the beginning of the meeting. This portion of the meeting covered what I understand were the issues surrounding the increase in the insurance premium and need for increased assessment. I do not know what was said or the explanation. Was this intentional discrimination? Am I now a second class, less preferred homeowner? I have no right to be counted as present, I have no access to information, I cannot ask questions and I cannot vote. The website provided by property management has ONE meeting minutes for 2023. The financial information stops at October. I cannot ask why an asset for PRE-paid insurance starts on the books in December 2022 if what I understand is true that the board and property management only had TWO WEEKs in October 2023 to work on the increase of the insurance premium. I cannot ask why in October 2023, the management fee was ~DOUBLE. Not many choices for me are there?

  By the way, the notice for the January dues came right on time! Course we have no coupon book for payments but I'm sure the late fees will be worth it.

  I can go on and on. Ad nauseum ... Do you (taskforce) believe for one moment when the property manager sent out the FIRST notice of assessment change, there was even ONE moment's thought of CCIOA or Governing Documents or Homeowner's Rights? The ONLY way out of this mess are enforcement rights for the Homeowner and STIFF penalties for those who believe we are tenants on our own property. You will always have a difficult argument with me that less education and knowledge is better than having an understanding about what a fiduciary responsibility means.

  
  
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  Proxies

  by LRB, over 2 years ago

  Just an observation regarding proxies mentioned at the Jan 2, 2024 HOA Task Force meeting. Proxy mining shouldn't be allowed; however, neither should a homeowner's ability to give a proxy to whomever they want. Limiting proxies limits homeowner's ability to give a proxy to the person of their choice if that person has reached the proxy limit. This can be problematic if the limit is quite low. Currently, directed proxies are allowed and I see nothing wrong with that and it is quite sad that the assumption that the proxy holder will be dishonest in voting was voiced at the... Continue reading

  Just an observation regarding proxies mentioned at the Jan 2, 2024 HOA Task Force meeting. Proxy mining shouldn't be allowed; however, neither should a homeowner's ability to give a proxy to whomever they want. Limiting proxies limits homeowner's ability to give a proxy to the person of their choice if that person has reached the proxy limit. This can be problematic if the limit is quite low. Currently, directed proxies are allowed and I see nothing wrong with that and it is quite sad that the assumption that the proxy holder will be dishonest in voting was voiced at the task force meeting. Whether a homeowner provides direction on how the proxy holder votes or not is also a decision for the homeowner, not the legislature. For our HOA, our sign-in sheet for member meetings have whether someone is "signing in" via proxy and who holds that proxy and, now, I suspect, will include if it is a directed proxy. We keep all the proxy sheets and sign-in sheets in our records. Isn't taking such simple steps at the meeting better than creating new legislation?
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  More Task Force Observations

  by gvito, over 2 years ago
  I watched the January 2, 2024, HOA Task Force meeting which proceeded exactly as I thought it would. A self-selected group of disgruntled homeowners monopolized the discussion. There was no way to know if any of what they stated was true and obviously, there was no rebuttal from any management company or HOA Board that might have refuted the complaints lodged.

  
  

  But I did come to the conclusion that this Task Force will fail in their objective of presenting common sense solutions to HOA issues, because it is obvious that is not what many homeowners (nor Task Force members) want... Continue reading

  I watched the January 2, 2024, HOA Task Force meeting which proceeded exactly as I thought it would. A self-selected group of disgruntled homeowners monopolized the discussion. There was no way to know if any of what they stated was true and obviously, there was no rebuttal from any management company or HOA Board that might have refuted the complaints lodged.

  
  

  But I did come to the conclusion that this Task Force will fail in their objective of presenting common sense solutions to HOA issues, because it is obvious that is not what many homeowners (nor Task Force members) want. What they want is for the Task Force to produce a utopian nirvana in which monthly dues are capped, but the complex or neighborhood is kept in pristine condition and all repairs are made within hours of being requested. They believe all disputes should immediately be resolved in the favor of the homeowner who should only have to follow the rules or policies that they decide to follow. Some folks clearly stated yesterday that they were aware of the covenants when they moved into a community, but figured they could change them and were shocked to find that other homeowners did not agree and voted against their proposed changes which they then deemed unfair.

  I also wonder if the Task Force is aware that they were used as a sounding board for two sides of a dispute in a northern Colorado community. I don't believe the purpose of this Task Force is to take sides in any dispute, especially without an objective examination of all the facts. Listening to two disputing parties hurl accusations at each other was a waste of valuable resources and time.
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  HOA Task Force

  by Cliff-BCII, over 2 years ago

  The following comments are intended for the HOA Task Force to consider. I have been sitting in on all the Task Force meeting as an HOA homeowner of four condominiums in Aurora, CO and as a Board Member (Treasurer) of one of the Associations. The January 2nd, 2024 meeting was in my observation 95% occupied by the public describing the 5% of the dysfunctional HOAs and with the vast majority of the speakers venting about individual personal conflicts within their HOAs. I suspect if all facts were known a good share of those speakers would be found to be the... Continue reading

  The following comments are intended for the HOA Task Force to consider. I have been sitting in on all the Task Force meeting as an HOA homeowner of four condominiums in Aurora, CO and as a Board Member (Treasurer) of one of the Associations. The January 2nd, 2024 meeting was in my observation 95% occupied by the public describing the 5% of the dysfunctional HOAs and with the vast majority of the speakers venting about individual personal conflicts within their HOAs. I suspect if all facts were known a good share of those speakers would be found to be the cause of their problem. I believe that probably 85 to 90% of the HOAs (in at least Aurora and Metro-Denver) operate reasonably efficiently with dedicated boards and effective management including the four in Aurora I own (I am a board member and Treasurer of one of them). Such suggestions as requiring some sort of formal education and licensing for board members would compound an already exasperating problem finding homeowners willing to serve. There is a pervasive problem with apathy among homeowners making it a problem to gather quorums for annual meetings. Further requirements of meeting attendance to make decisions would tie the hands of boards to operate an HOA. My biggest fear is this Task Force make recommendations and the Legislature ultimate propose "one-size-fit-all" laws addressing the 15% thus causing the 85% to pay addition costs suffering the unintended consequences. Respectfully submitted,

  Cliff Wagner, Treasurer

  BrandychaseII HOA Association
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  2 CCIOA items for the taskforce to consider

  by 1150H, over 2 years ago

  There are a couple of things that I think the HOA taskforce might wish to consider. Please pass these concerns along at the Jan. 2 meeting if possible.

  1. If I read CCIOA correctly, recording of HOA meetings is prohibited. I question the rationale of prohibiting the making of, referring to, and archiving of audio recordings of board and member meetings. Without a proper unbiased record, accuracy in writing of minutes and the precise wording of motions, for example, is severely challenged.

  Case in point: The actual motion at the directors meeting was “to proceed with the lawsuit if necessary”... Continue reading

  There are a couple of things that I think the HOA taskforce might wish to consider. Please pass these concerns along at the Jan. 2 meeting if possible.

  1. If I read CCIOA correctly, recording of HOA meetings is prohibited. I question the rationale of prohibiting the making of, referring to, and archiving of audio recordings of board and member meetings. Without a proper unbiased record, accuracy in writing of minutes and the precise wording of motions, for example, is severely challenged.

  Case in point: The actual motion at the directors meeting was “to proceed with the lawsuit if necessary” and the motion passed by a narrow margin. In the minutes, however, the words “if necessary” were omitted, and at least one board member was astonished that legal proceedings were immediately pursued, before any other action was undertaken.

  2. I question the ensuring of “compliance” with CCIOA’s covenant requirements by adding “policies” to outdated HOA bylaws without actually reviewing or amending existing covenants! Apparently, this is being encouraged - and billed - by some professional HOA attorneys who propose adding (ridiculous, if I may say so) “addenda” (one-size-fits-all boilerplate) to existing bylaws! It seems like a scare tactic to take advantage of HOAs that were unaware of recent CCIOA amendments. Surely this is not best practice, although my HOA certainly fell prey to it.

  Thank you.
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  Speeding Drivers Impact Peaceful Enjoyment of My Property

  by JNM3, over 2 years ago
  

  
  MY CONCERN:

  Language in C.R.S. § 38-33.3-209.5 (HB 22-1137) has recently been used to justify gutting Rules and Regulations for *NON-curable violations*, as well as for curable violations.

  
  

  At issue is a non-curable violation: exceeding the posted speed limit.

  
  

  BACKGROUND:

  In the past, our HOA effected changes in driver behavior using due process. We have photo radar equipment and trained enforcement staff. We had a schedule of fines and a fair hearing/appeal process, defined in our Rules.

  
  

  Our HOA owns and maintains 19 miles of rather steep and curving Private Roadways. On a daily basis, speeding drivers (1,000+) pose health... Continue reading

  
  MY CONCERN:

  Language in C.R.S. § 38-33.3-209.5 (HB 22-1137) has recently been used to justify gutting Rules and Regulations for *NON-curable violations*, as well as for curable violations.

  
  

  At issue is a non-curable violation: exceeding the posted speed limit.

  
  

  BACKGROUND:

  In the past, our HOA effected changes in driver behavior using due process. We have photo radar equipment and trained enforcement staff. We had a schedule of fines and a fair hearing/appeal process, defined in our Rules.

  
  

  Our HOA owns and maintains 19 miles of rather steep and curving Private Roadways. On a daily basis, speeding drivers (1,000+) pose health and safety risks to pedestrians, wildlife, other drivers, and homeowners who live adjacent to these thoroughfares.

  
  

  Hiding behind HB 1137, our HOA management (with backing from HOA legal counsel) has gutted a longstanding section of our Rules and Regulations that cover penalties for speeding, and other NON-curable violations.

  
  

  In its place are newly adopted Policies and Procedures that are weak and confusing. Not only are they difficult for a layperson to understand but may also be difficult to execute transparently.

  
  

  Some residents perceive the newly crafted legalese to be ‘weasel words’ based on pretzel logic. Gobbledygook, in other words.

  
  

  CONCLUSION:

  As a past HOA board member I believe CCIOA must be updated to clearly give Colorado HOAs the ability to properly enforce non-curable violations such as speeding.

  
  

  The manner of HOA speed limit enforcement should be allowed to mirror that used by state and county law enforcement personnel.

  
  

  Quality of life in our community — the peaceful enjoyment of one’s property — depends on it.
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  H O A property management companies participating in Unearned Fee kickback at closing of Federal Related Mortgage transactions

  by Liam in Broomfield, over 2 years ago
  At least on company, which provides downloads of H.O.A. documents to potential purchasers of resold properties are offering up to $80.00 of the $300.00 service fee charged to homebuyers. These fees are collected at closing and charged to homebuyers on the RESPA settlement statement (HUD-1). This practice is a violation of Real Estate Settlement Procedures Act. This information was presented in written statement by the property management company seeking an engagement with out H.O.A.,Inc.

  At least on company, which provides downloads of H.O.A. documents to potential purchasers of resold properties are offering up to $80.00 of the $300.00 service fee charged to homebuyers. These fees are collected at closing and charged to homebuyers on the RESPA settlement statement (HUD-1). This practice is a violation of Real Estate Settlement Procedures Act. This information was presented in written statement by the property management company seeking an engagement with out H.O.A.,Inc.
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  I have concerns

  by djcampanelli, over 2 years ago

  Hi,

  
  I own in a Homeowner Association Community. I am a Realtor since 2000 and I am also on the HOA Board of Directors and sit in the Treasurer role. Our homeowners' association is self-run. We do not have a paid management company.

  The biggest problem I see is that people buy in homeowner association communities thinking that everything is going to be done for them and that the association is some third-party entity.

  I have experienced this in our community where a person told our president that he thinks the association is just trying to screw over the little... Continue reading

  Hi,

  
  I own in a Homeowner Association Community. I am a Realtor since 2000 and I am also on the HOA Board of Directors and sit in the Treasurer role. Our homeowners' association is self-run. We do not have a paid management company.

  The biggest problem I see is that people buy in homeowner association communities thinking that everything is going to be done for them and that the association is some third-party entity.

  I have experienced this in our community where a person told our president that he thinks the association is just trying to screw over the little man. The president educated him on who the association is.

  The association is the homeowners. The board is made up of volunteer homeowners. Our goal is to keep the property and amenities in good repair so that we can maintain the value of our property and live in a nice place.

  This year our homeowners insurance doubled in price. It went from $111,000 to $232,000. That took an extra $121,000 out of our reserves. At the time of our renewal in March, we were told if we replaced our Federal Pacific electric panels that we could get our insurance back down to where we estimated in our budget ($130,000) because we would now be open to so many more insurance companies that previously wouldn't give us a quote.
  
  We had a meeting of the homeowners and we all agreed that we would replace our panels. After doing that the price reduction was not immediately forthcoming. Fast forward to October when we were creating our budget for 2024 and the insurance agent tells us our insurance will likely be in the $450,000 range in 2024. We had to go to the homeowners and explain that if we had to pay that $450,000 in March we would likely go bankrupt as it would leave us with no money in reserves or checking and no money for anything else. To cover this drastic increase we would need to double our dues from $314 to $600 per month.
  
  People in the community made ridiculous statements like where did all our money go. The board is lining their pockets. They wanted to see the last three years of budgets (which budget vs actual is published every month for them to see) so they could determine where things went wrong. I could go on. But suffice it to say, the homeowners are not engaged, not paying attention, and even when we explained it to them, they still said they weren't going to vote for the increase.
  
  After that meeting numerous homeowners gave us insurance agent contacts and we reached out to all of them to no avail. But our longstanding insurance agent, when he realized we were shopping for insurance, came back with a lower quote as long as we renew before the price increases that will happen on January 1. Our new policy will be $205,000 (not $130,000 as previously stated) and we would need to raise the dues to $398 per month. For many this was palatable compared to the $600 per month we were potentially facing. But there were still many people who voted against the increase.

  Fortunately, the majority voted yes and we will be solvent for another year. But our community was built in 1969 and many things need to be repaired. Like our streets which need to be paved at a cost of $550,000. Our sprinkler system broke this year and needed to be replaced throughout at a cost of $28,000 which was not in the budget. And in just the last 3 months we had 3 water line pipe breaks at a cost of $10,000 each. We had $5,000 in the budget. Our 2024 budget allows for $40,000 to go into reserves. In the last 3 years zero has gone into reserves and if we have as many water line breaks as we've had this year, I expect zero will go in again.
  
  My point here is that when people move into a homeowners association they have to realize that they are agreeing to be a member of the community and to work together with the other homeowners to keep it in good repair. This means paying their dues, and understanding that as things break it is the homeowners who have to pay for the repairs. The association is the homeowners. When one person doesn't pay their dues (which in our case it is more like 10%) that hurts us financially. We don't want to send people to collections. We want to be understanding of the situations people are in. But some people just don't ever get out of their bad situation and expect the others living in the community to just carry the weight. That is not fair to those who pay.

  On a separate note, I see that someone wants the board to go through training. We can barely get people to sit on the board let alone go for training. We just had to change our board requirements from 9 people to 7 because we can't get anyone to run for the board. If we tell people they have to go through training I expect we will get even less.
  
  I do think a disclosure to buyers about buying in a HOA Community would be valuable if done right. We had two homeowners who bought and never paid an HOA fee in 2 years because they thought it was included in their mortgage. They are now on payment plans.

  If you have questions on anything I wrote, please feel free to reach out.
  
  Sincerely,

  Donna Campanelli
  719-330-8531
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  I am a HOA Homeowner

  by RAK, over 2 years ago
  1. This site has been very difficult to enter! I have tried since it's inception and just now have been able to access this site!

  2. President of our HOA did a secret purchase of one share of non-potable water (in the thousands) without a vote from membership and was is in conflict with our Covenants.

  3. Illegal ballot counting, wherein HOA Board has either counted the ballots without a meeting or members present; or has assisted in the ballot counts on voting. This is a violation of CCIOA. HOA will not divulge the number of votes counted for each... Continue reading

  1. This site has been very difficult to enter! I have tried since it's inception and just now have been able to access this site!

  2. President of our HOA did a secret purchase of one share of non-potable water (in the thousands) without a vote from membership and was is in conflict with our Covenants.

  3. Illegal ballot counting, wherein HOA Board has either counted the ballots without a meeting or members present; or has assisted in the ballot counts on voting. This is a violation of CCIOA. HOA will not divulge the number of votes counted for each candidate, and it is suspect that the vote count was illegal for new Board members.

  4. HOA has not filed proper tax returns. This Association has interest income that was taxable and treasurer said "HOA didn't have to pay taxes because we're non-profit".

  5. NO PENALTIES IN COLORADO for wrongdoing by HOA Boards. This is wrong!!!

  6. Courts are sensitive to HOA's and support them and not the homeowners. Homeowners assessed over $10,000.00 each in 2021 for a water infrastructure that was an illegal vote.

  7. HOA Board allowed one homeowner to be relieved of his annual assessment without a vote or notice. Even an audit did not divulge.

  8. Please, please, make it a penalty state with HOA's. Association Boards are getting away with way too much and DORA has all of these rules, CCIOA, etc., that HOMEOWNERS have to follow, but Board members can do just about anything; even in violation of their own Covenants, and there is no penalty for any of it. Why have all these rules, when HOA Boards don't have to follow?