Description: This class will provide you with an overview of what an HOA is and how one is formed or terminated, the documents and statutes that govern HOAs and how they should be used/ implemented, who the players are in an HOA community, as well as what their roles are and what rights and responsibilities they have.
Description: Join the HOA Information and Resource Center along with other HOA board members in a round table discussion on how to tackle the issues facing your HOA through an exchange of ideas, tips and information.
Description: Join the HOA Information and Resource Center along with other HOA board members in a round table discussion on how to tackle the issues facing your HOA through an exchange of ideas, tips and information.
Description: This Ask-A-Specialist Series will focus on Mediation and its under use in HOA's. It will be presented by attorney and professional mediator Marianne K. Lizza-Irwin of Foothills Mediation and ADR. If you have questions on how best your HOA can utilize ADR or just want to learn more about the different ADR options, please join us.
Description: Join the HOA Center, your neighbors and CONO in discussing specific topics and sharing conversation to inspire action in your communities! Special activities and agenda to come!
Description: Join the HOA Center and the Colorado Judicial Branch in Pueblo County in Celebrating Legal Resource Day. There will be a variety of community organizations, Ask-An- Attorney sessions, as well as educational classes on topics regarding domestic relations, landlord tenant, HOA's and estate planning.
Description: Join the HOA Information and Resource Center along with other HOA board members in a round table discussion on how to tackle the issues facing your HOA through an exchange of ideas, tips and information.
Date: 11/6/19 @ 10 a.m.
Topic: HOA Forum: Ask A Specialist on Special Districts
Description: For this forum attorneys Heather Hartung and Trisha Harris of White Bear Ankele Tanaka & Waldron will be explaining Special Districts and how they interact with HOA's.
Description: This class will provide you with an overview of what an HOA is and how one is formed or terminated, the documents and statutes that govern HOAs and how they should be used/ implemented, who the players are in an HOA community, as well as what their roles are and what rights and responsibilities they have.
Description: Join the HOA Information and Resource Center along with other HOA board members in a round table discussion on how to tackle the issues facing your HOA through an exchange of ideas, tips and information.
Many associations have architectural restrictions to maintain the pleasing aesthetics of the community and to prevent homes from deteriorating. This process is often administered by a board-appointed committee of homeowners known as the architectural review committee or “ARC”. In short, the ARC has the vital job in maintaining the aesthetics and property values of your association.
The Authority
The ARC receives its authority to review plans prior to construction from the associations CCRs and bylaws.
In fact, your association’s governing documents may have architectural rules or restrictions that provide specific guidelines about what structures will be approved, whether there are limitations on height, color or placement. It may even have rules outlining the procedure and process for submitting plans, obtaining a hearing in front of the committee or appealing a decision to the Board of Directors.
The Provisions
To avoid ARC disputes and ensure compliance, it is important that the process and provisions are well written and should contain some combination of the following:
A provision indicating that prior written approval must be received by the applicant before any building or construction can commence.
A provision indicating that applicants should provide the approval documents of the municipal/county building departments.
A provision stating that failure to comply with all requirements pertaining to architectural modifications will result in withdrawal of approval and a demand that the property be reverted back to its original condition.
A provision stating that architectural approval is not a guarantee of structural safety or engineering soundness, and applicants are responsible for contracting with the appropriate parties to ensure proper design and engineering soundness.
A provision stating that applicants are responsible for any damages caused by their contractors to common elements or other units.
A provision specifying that applicants will not make any improvements not specified in the application without prior written approval from the board or committee.
A provision requiring applicants to notify the committee/board immediately after completion of the improvement, and authority for the committee or board to enter onto the property to inspect the improvement.
Where associations have the exterior maintenance obligations, a provision must be added stating that the applicant/owner will take on the additional maintenance and insurance obligations for the improvement, and this obligation should be incorporated into the association’s governing documents to ensure all future owners are aware of, and bound by, this obligation.
A provision in which applicants agree to comply with any association request to enter the property for purposes of determining if the improvement is being constructed in accordance with the approval plan and in compliance with the covenants and guidelines.
A provision specifying the time frame within which the project must be commenced and completed, as well as a statement that failure to comply with the timeline shall result in withdrawal of approval unless an extension is requested and approved in writing.
It is also important for associations to review and update these provisions on a yearly basis.
The Homeowners Role
As a homeowner, it is important to observe the governing documents and ARC provisions carefully to avoid adverse decisions preventing you from building your dream home and to prevent neighbor disputes over the erection of structures. Neighbors can seek to have an existing structure torn down for being in violation of the association’s CC&Rs. Many aggrieved owners will also turn to the court system to resolve architectural review disputes, and architectural review litigation is highly unpleasant, costly and time consuming for all those involved.
The Board’s Role
Part of the board’s role is to prevent disputes and resolve them quickly if they come up. As such, it is important to establish clear and concise ARC rules and provisions. If an association has ambiguous provisions, the board should adopt rules and guidelines to clarify those vague provisions. Moreover, the board and appointed committee should enforce the provisions fairly and uniformly.
While you may not always hear of instances where an HOA board member or management company steals from the HOA, it does occur. Not long ago I received a call from two managers who believed that their employing manager was committing transfer fraud. In this case, taking money from an HOA’s account for personal use and then covering the stolen funds from another HOA and continuing that pattern. Having some type of protection against this is extremely important.
Enter fidelity insurance or as the industry likes to call it, “employee dishonesty” coverage. Fidelity insurance is a policy meant to protect associations from loss of funds as a result of acts committed by its own employees, directors, officers and/or management companies.
Fidelity policies generally cover associations in instances of embezzlement, forgery, fund transfer fraud, computer fraud, and counterfeiting fraud. These policies also typically cover costs associated with investigating the theft.
Under the Colorado Common Interest Ownership Act “CCIOA” an association with 30 or more units must carry fidelity insurance in the amount of two months of assessments plus reserves. For FHA certification, an association regardless of size or the year created, must have fidelity insurance in the amount of 3 months of assessments plus reserves.
While fidelity coverage is extremely important, it is only one of the many types of required and recommended insurance coverages for associations. Take time to review the CCIOA and speak to your insurance specialist to make sure your HOA has all the recommended and required coverages.
