By Aaron Goodlock, Orten Cavanagh Holmes & Hunt, LLC
CAI’s Legislative Action Committee (CLAC) is anticipating another active legislative session in 2024. Both the governor’s office and members of the general assembly have signaled that common interest communities continue to be a significant area of focus for the Colorado legislature.
Legislative reform presents both challenges and opportunities for community associations. Among CLAC’s objectives is to engage proactively with stakeholders and legislators in order to embrace opportunities and limit challenges.
Legislation Expected to be Introduced in 2024
As of October 2023, the Colorado HOA Homeowners’ Rights Task Force members have been appointed and task force meetings are underway, with the first public meeting scheduled for October 24, 2023. Additional task force meetings will be held through the end of 2023 and early 2024.
The HOA Homeowners’ Rights Task Force final report is scheduled to be published no later than April 15, 2024 – in the midst of the 2024 legislative session. Among the primary issues expected to be addressed in the report are legislative recommendations pertaining to:
- Common interest community fining authority and practices
- Community association foreclosure practices
- Communication practices between community associations and homeowners
- Availability and disclosure of association records
CAI members are encouraged to participate in the HOA Homeowners’ Rights Task Force survey and share comments or ideas by attending the task force meetings or submitting information online through the HOA Homeowners’ Rights Task Force website:
https://engagedora.org/hoa-task-force
Although it would seem premature to introduce legislation prior to the release of the task force’s final report, legislation affecting common interest communities is expected to be introduced throughout the 2024 legislative session. The following topics have been identified as potentially subject to new/additional legislation based on recent nationwide trends, public policy statements from local and statewide trade organizations, previous legislation introduced in Colorado, and recognized state-specific concerns:
- Insurance
- Reserve studies and funding
- Colorado House Bill 22-1137 reform
- Housing affordability and local/statewide land use regulation (e.g., ADUs)
- Community association collection practices and remedies
- Wildfire mitigation, conservation, and sustainability
- Regulation of home-based businesses
Key strategies and initiatives of CAI for the 2024 legislative session include:
- engaging in constructive dialogue and discussion with the HOA Homeowners’ Rights Task Force
- building and developing political support
- identifying legislators to sponsor meaningful change for community associations, with a vested interest in building and maintaining resilient and sustainable communities throughout Colorado
- developing pragmatic legislative solutions to address challenges arising from previous legislation (e.g., HB 22-1137 clean up)
- preventing further legislation that substantially adversely impacts Colorado common interest communities, homeowners, and residents
- promoting legislation that supports overall welfare of community associations
- advocating for changes and updates to CCIOA that reflect modern best practices, embrace technology, and support harmonious, thoughtful, and recognized public policies
What Else to Expect and Prepare for in 2024
The Colorado Fair Access to Insurance Requirements (FAIR) Plan.
The Colorado Division of Insurance will appoint the board of directors to oversee and implement the Colorado FAIR plan, established by Colorado House Bill 23-1288 and signed into law by the governor on May 12, 2023. The FAIR Plan board of directors is to be appointed by January 1, 2024.
The FAIR Plan will provide residential and commercial property insurance to eligible individuals and entities in Colorado (including community associations) when coverage is unavailable through traditional means.
Once appointed, the FAIR Plan board of directors is required to develop a “plan of operation” to be submitted to the Colorado Division of Insurance on or before July 1, 2024. The plan of operation will identify, among other things, the lines of coverage, coverage limits, policy forms, and covered perils to be made available and offered through the Colorado FAIR plan.
Continued discussion and analysis of future changes to CCIOA based on the HOA Homeowners’ Rights Task Force Final Report.
Community associations should expect ongoing discussion among legislators and interest groups about issues identified in the HOA Homeowners’ Rights Task Force Final Report, after it is published in April, 2024. In addition to the primary topics outlined above, the final report is expected to address and include recommendations regarding possible (future) changes to CCIOA to incorporate and implement aspects of the 2021 Uniform Common Interest Ownership Act.
To ensure that constituents’ voices are heard, CAI members are encouraged to attend and participate in the HOA Homeowners’ Rights Task Force proceedings and contact your local legislators prior to and during the upcoming legislative session.
Aaron J. Goodlock is a partner at Orten Cavanagh Holmes & Hunt, LLC. He provides general counsel and transactional services to community associations throughout Colorado and serves on the Colorado Legislative Action Committee for CAI.
