Date: 08/19/2014
Final
Revisions to the Uniform Common Interest Ownership Act Section 3-116
COLORADO COMMISSION ON UNIFORM STATE LAWS
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10:53 AM -- Revisions to the Uniform Common Interest Ownership Act Section 3-116
Commissioners Morris and Mielke explained that the revisions are regarding a specific time period and the priorities of liens for unpaid common expenses owed and currently going unpaid to homeowners' associations during foreclosures. Units under foreclosure are not paying their portions of HOA dues and the costs of these outstanding maintenance expenses are being shifted to other unit owners to cover because the HOA has no priority to get payment money from the source. The Commission pointed out that these changes were proposed to address problems from the recent recession but the legislation is still necessary.
11:00 AM -- Dan Sweetser, Colorado Bar Association - Real Estate Section, indicated that there are concerns about unintended consequences from the law and this legislation should be considered carefully.
11:03 AM -- Candyce Cavanagh, Community Associations Institute - Colorado Legislative Action Committee (CAI-CLAC), confirmed that there currently is no recourse available for HOAs and indicated that there was some support for the legislation.
Commissioner Gardner mentioned that this act generated a lot of discussion at the national convention and that it may be questionable for moving forward through the general assembly this year. Commissioner Mielke encouraged those supporting the legislation to find a sponsor to help the Commission move it forward. Final decisions on approving legislation for introduction in 2015 will be made at the December meeting so all interested parties should be prepared to share their comments at that meeting.