Date: 02/24/2010
Final
BILL SUMMARY for HB10-1278
HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
| Votes: View--> | Action Taken: |
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12:22 PM -- House Bill 10-1278
Representative Ryden, prime sponsor, presented House Bill 10-1278 concerning the creation of an ombudsman for matters arising under the "Colorado Common Interest Ownership Act". Current law authorizes the creation of common interest communities to be governed by unit owners' or homeowners' associations (HOAs). The bill creates the office of the HOA ombudsman in the Division of Real Estate, Department of Regulatory Agencies. The ombudsman is required to advocate for the rights of unit owners in the governance of unit owners' associations, offer to mediate disputes, act as a clearinghouse for information, and report suspected violations of rules to the division.
The Secretary of State is required to collect a surcharge on filing fees paid by unit owners' associations to cover the direct and indirect costs of the ombudsman office. A sunset review is required by September 1, 2010.
12:26 PM -- Linda Sasenick, representing herself, testified in support of the bill. She talked about the problems with the current law regarding HOAs. Ms. Sasenick talked about the benefits an ombudsman would provide homeowners.
12:31 PM -- Frank Kettlewell, representing homeowners, testified in support of the bill and distributed a handout of his testimony and a list of liens (Attachment D and E, respectively). He talked about issues he and other homeowners have had with various HOAs. Representative Stephens asked Mr. Kettlewell to explain how an ombudsman would address his issues with an HOA if they do not have any rule-making authority. Mr. Kettlewell responded. He responded to additional questions from the committee.
12:59 PM -- Donna Jack, representing herself, testified in support of the concept of the bill. She raised some concerns and questions about the ombudsman.
01:04 PM -- Kirk McDonald, representing himself, testified in support of the bill. He talked about his experience with the Colorado Common Interest Ownership Act and distributed a handout (Attachment F). He stated that there is currently no enforcement of the act.
01:15 PM
Representative Ryden responded to questions from Representative Balmer regarding HOA's enforcement actions.
01:18 PM -- Jeff Sacco, representing himself, testified in support of the bill. He stated that the bill will support homeowners. He spoke to his experiences interacting with his HOA and distributed a handout (Attachment G). He responded to questions from the committee.
01:30 PM -- Amy Redfern, Community Associations Institute, testified in opposition to the bill as currently written. She stated that discussions need to continue on how to best structure the bill to address the concerns of citizens.
01:32 PM -- Jeani Frickey Saito, Colorado Association of Home Builders, testified in opposition to the bill, stating that the mechanics of the bill do not work. She described the variety of HOAs in the state, and stated her belief that an ombudsman's office wouldn't have the expertise necessary to deal with the HOAs.
01:35 PM -- Erin Toll, Director of the Division of Real Estate, testified against the bill. She said the bill has no teeth and said it needs to be more specific. Representative Soper asked what the division does with complaints and she said currently they do the same thing an ombudsman would do since they have no jurisdiction; they tell people to either go to court, or to the board of directors. Representative Balmer commented that he would not like to see a punitive bill come forward if the sponsor does try to put teeth in the bill.
01:41 PM -- Jim Burneson, representing himself, testified and said he would like to see the HOAs licensed with the Real Estate Commission. He talked about the problems with taking these cases to court. Representative Bradford asked Mr. Burneson to talk about a website he mentioned in his earlier testimony. Representative Bradford asked whether Mr. Burneson himself has had an issue with an HOA.
01:53 PM
The chair laid the bill over until March 2.