Appraisal Licensee Advisory: Valuation Bias

As an appraiser, you are required to follow the Colorado Appraiser Practice Act (§§ 12-10-601 through 12-10-623, C.R.S.) and the Rules Governing the Practice of Real Estate Appraisers of the Board of Real Estate Appraisers (4 C.C.R. 725-2). On November 2, 2023, the Board of Real Estate Appraisers (“BOREA”) reviewed and updated its rules for implementation on January 1, 2024.  Among other changes, the rules include requirements that licensees must take education courses in (1) valuation bias and (2) fair housing laws training requirements.

Many practitioners have heard about valuation bias or read articles pertaining to the importance of compliance with fair housing laws. In recent years, these concepts have received increased attention. This advisory is to provide information on the Valuation Bias and Fair Housing Laws and Regulations course. After careful consideration and consultation with practitioners, fair housing attorneys, and other stakeholders, the Appraisal Qualifications Board (“AQB”) developed a Valuation Bias and Fair Housing laws and Regulations course. In Colorado, the course will be mandatory after January 1, 2026 and may take three forms:

• a seven (7) hour course,
• an eight (8) hour course which is the seven (7) hour course plus a one (1) hour examination, and
• a four (4) hour course for practitioners in subsequent license cycles after having taken either (A) or (B) above in a previous license cycle.

As set forth by the AQB in the course outline, the principal course topics are:

• Understanding Real Estate Bias,
• Federal Fair Housing and Antidiscrimination Laws and Regulations,
• Valuation Bias, and
• Case Studies

The course is heavily weighted towards a historical perspective on these topics and is designed to provide students with information on the role that industry and government decisions made long ago still affect the current real estate market today. 

According to BOREA Rule 7.2.C, this course will be required every two (2) years beginning after January 1, 2026. The first time an existing licensee completes the continuing education requirement for this course, the course length will be seven (7) hours. If a Licensee successfully completed a seven (7) hour (plus one (1) hour exam) course as part of their Qualifying Education, they have satisfied this requirement.  Most recently in May 2025, the AQB updated their Q&A Document.  This important guidance contains several changes but perhaps the most significant revision involves clarification on when an appraiser must complete the initial 7-hour or 8-hour Valuation Bias and Fair Housing course under the 2026 Real Property Appraiser Qualification Criteria.  Specifically, the updated guidance now clarifies that appraisers must complete the initial 7-hour CE version (or the 8-hour QE version with exam) within the first two calendar years after the 2026 Criteria becomes effective.

Thereafter, the course length must be at least four (4) hours.  All practitioners should be advised that successful completion of the four (4) or seven (7) hour Valuation Bias and Fair Housing Laws and Regulations Courses will be credited toward the required twenty-eight (28) hours of Continuing Education required during every two (2) year licensing period.

As education providers develop these important appraisal courses, BOREA will approve those classes, and licensees will find them on the Division’s Approved Continuing Education course list. 

For more information, appraisal practitioners can visit the Appraisal Foundation website:

HOA Center Advisory A Quick Guide to Governing Documents

It should not come as a surprise that many homeowners in Colorado live in common interest communities, like HOAs, POAs, condominium associations, and cooperatives.  In fact, the Colorado HOA Information and Resource Center estimates that as of the end of 2024, approximately forty-six percent of Colorado’s population lives in a common interest community. Therefore, it is important for these people-and others interested in buying a home in a common interest community-to understand some of the fundamental documents that govern, control, and direct boards, management companies, and owners to live in and successfully manage a community. 

Colorado law is clear: the relationship between homeowners and homeowners’ associations is a contractual relationship. The most effective way of understanding governing documents is that they set forth the terms of that contract. Therefore, in addition to understanding laws like the Colorado Common Interest Ownership Act (“CCIOA”) and the Colorado Nonprofit Corporation Act (“CNCA”), possessing copies of your governing documents, understanding your governing documents, and participating in the homeowner’s association process is essential.

Therefore, without further delay, a brief discussion of each of the governing documents will assist anyone that is looking for more information:

1. Declaration of Covenants, Conditions, and Restrictions (also known as “Declaration” or “CC&Rs”): Colorado statutes define a declaration as any recorded instruments that create a common interest community, including any amendments to those instruments and also including, but not limited to, plats and maps. Section 38-33.3-205, C.R.S. sets forth a complete list of what must be included in the declaration. Generally, it should contain broad protective standards and restrictions for the community for which the rules, regulations and policies (each of which are discussed below) are intended to explain, clarify, and define in greater detail. The declaration should also provide how the association will allocate the allocated interests of each unit; specify the purpose and goals of the association; and, address any formalities regarding the transition from developer to owner control. Many associations share a copy of the declaration on a website, if the community has a website, or upon request by mail or email. In fact, the declaration and other governing documents are required to be shared with community members upon request.  However, because the declaration is recorded with the Clerk and Recorder’s Office for the county or counties where the community is located, interested parties can obtain a copy of the declaration by contacting the Clerk and Recorder’s office, as well. 
   
   
2. Articles of Incorporation: Associations are treated like private corporations under Colorado law and most associations are organized as nonprofit corporations. If this is the case for your association, the Colorado Nonprofit Corporation Act is one of the relevant laws to know and understand. Section 7-121-401, C.R.S. defines Articles of Incorporation as meaning not only the original articles, but also “amended Articles of Incorporation, restated Articles of Incorporation, and other instruments, however designated, on file in the records of the secretary of state that have the effect of amending or supplementing in some respect the original or amended Articles of Incorporation…” The Articles of Incorporation must define the legal name, address and corporate status of the HOA. Section 7-122-102, C.R.S. provides for what else must be contained in the Articles of Incorporation. Articles of incorporation may also contain provisions that define some of the functions of the association, as well as setting forth the general power and authority of the association. Since articles of incorporation are created and filed with the Colorado Secretary of State (“SOS”), if you do not have articles of incorporation, you may check with your board or the SOS.
   
   
3. Bylaws: Bylaws are also a mandatory document for the association, but, unlike the CCRs, this document is not filed with the county. The original of this document also would have been prepared by the developer (with HOAs, we call the developer the "Declarant"). The Bylaws are terms that define how the association is going to function as a corporation. Bylaws will determine the number and terms of directors, frequency of elections, and any other procedures that are specific to the HOA. Those other procedures include procedures for providing notice, holding meetings and elections, as well as defining the roles and authority of the board.
   
   
4. Governance Policies: Section 38-33.3.209.5, C.R.S. of CCIOA requires an association to adopt policies and procedures concerning multiple areas of association governance. There are currently nine required policies:

1. Collection Policy
2. Enforcement of Covenants Policy
3. Conflict of Interest Policy
4. Conduct of Meetings Policy
5. Adoption of Rules and Policies Policy
6. Investment of Reserves Policy
7. Alternative Dispute Resolution Policy
8. Inspection of Records Policy
9. Reserve Study Policy

5. Rules and Regulations: The rules and regulations of an association are intended to explain, clarify and define the broad protective standards and restrictions contained in the declaration, in greater detail.

For more information:

1. Please visit the HOA Information & Resource Center at: https://dre.colorado.gov/hoa-center
2. Please review the Colorado Common Interest Ownership Act, the Colorado Nonprofit Corporation Act, and other relevant laws at: https://dre.colorado.gov/ccioa-and-other-state-local-and-federal-laws
3. If you do not understand these documents, you might consider consulting with a professional, such as an accountant or attorney.

HOA Forum:
Registration - Getting into the Nitty-Gritty

The HOA Information & Resource Center strives to make the HOA registration process as smooth as possible for consumers.  Common challenges with registering an HOA include determining whether the HOA has already been registered, how to locate the correct information with the Secretary of State, when and how to change the Designated Agent (“DA”) account, and the functionality of the Online Registration Number (“ORN”).

Please join Amanda Lopez, the HOA Program Support Specialist, on Friday, June 27, 2025 at 1:00 PM (MST) for an in-depth presentation on HOA registration. This HOA Forum is specifically designed for board members and Community Association Managers; however, all are welcome to attend.

Presentation Details: 

• Date: Friday, June 27, 2025
• Time: 1:00 p.m. - 2:00 p.m. (MT)
• Location: Online Webinar Only

You may register for the event here:

Life is Busy - We Get It!

Did you miss any of our meetings or forums last month? No need to worry! You can click the links below to catch up and stay current with what is going on at the Division of Real Estate.

- May 1, 2025: Board of Real Estate Appraisers (BOREA) Meeting
  Webinar - Video

- May 21, 2025: Board of Mortgage Loan Originators (MLO)
  Webinar - Video

- May 14, 2025: Stipulation and Final Agency Order Executed By Division      of Real Estate Revoking Real Estate Broker License Upon Detailed              Investigation
  Press Release - Article

- May 14, 2025: Colorado Real Estate Commission Revokes Property            Manager’s Real Estate Broker License
  Press Release - Article