SB 24-021

Abstract

Current law exempts certain small cooperatives and limited-expense planned communities from most of the requirements of the "Colorado Common Interest Ownership Act", which governs the conduct of homeowners' associations (associations). A cooperative or planned community may avail itself of the exemption if: A cooperative was created on or after July 1, 1992, but before July 1, 1998, and either contains only units restricted to nonresidential use or contains no more than 10 units and is not subject to any development rights; A planned community was created on or after July 1, 1992, but before July 1, 1998, and contains no more than 10 units and is not subject to any development rights, or if a planned community provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes may not exceed $400, as adjusted for changes in the consumer price index (CPI); A cooperative or planned community was created on or after July 1, 1998, and contains only units restricted to nonresidential use or contains no more than 20 units and is not subject to any development rights; or A planned community was created after July 1, 1998, and provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes may not exceed $400, as adjusted for changes in the CPI. The act combines these exemptions, with amendments, to state that a cooperative or planned community may avail itself of the exemption if: A cooperative or planned community was created on or after July 1, 1992, and either contains only units restricted to nonresidential use or contains no more than 20 units and is not subject to any development rights; or A planned community provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes must not exceed $400, as adjusted annually since July 1, 1999, for changes in the CPI. A cooperative or planned community that may avail itself of the exemption may elect instead to be subject to the entire "Colorado Common Interest Ownership Act" by adopting an amendment to its declaration evidencing its election. The act requires the HOA information officer in the department of regulatory agencies to provide notice of the act to cooperatives and planned communities that are affected by the act, including notice of the option to opt out of the exemption. APPROVED by Governor April 11, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)