HOA Attorney Communication

The following is a summarized version of email communication sent by the Crest View Estates attorney via email. It was a follow-up to a meeting several HOA Board members had with her in April, 2016. Follow-up communication regarding the board's activities in regards to updating/clarifying the HOA's covenants will be provided on a regular basis, but please contact the HOA board with any questions you may have.

Email: CrestviewHOA@email.com

Emailed communication (June 14, 2016) from HOA Attorney following up from April 2016 meeting (Emailed to CrestviewHOA@email.com)

In regard to the question of whether or not lenders for homeowners need to be notified of any amendment to the Covenants, the answer is no, they do not. Your Covenants don’t require that notification and there is no separate statutory requirement in Colorado for such notification. The idea is that lenders who loaned (or loan) on the property have notice of your Covenants (through title work provided to lenders during real estate transactions) and the fact that there is no lender notification requirement. Re: the question of imposing fines on owners that do not comply with ACC or other requirements of the HOA. Your ACC provides for general enforcement, and also provides for Organization of the HOA to lead enforcement. While the law does interpret this “enforcement power” to include the ability to promulgate policies and procedures for fines and enforcement, you still need a written policy and a fair and impartial fact-finding and enforcement process as part of such policy. While you are looking at possible amendments to the Covenants, or policies and procedures to enforce the Covenants, consider such a policy as well. CCIOA (Colorado Common Interest Ownership Act, which does not apply to your HOA currently because you were created before CCIOA and you have dues of less than $300 annually) is what actually mandates the written policy and its specifics. Although you are not governed by CCIOWA, it is my advice that you follow it in regard to the written policy as such a policy can prevent questions/arguments/litigation regarding enforcement. Re: your HOA fees. We did find in your Bylaws that they are mandatory. This may be something else that you clarify to the HOA members during the amendment process. Collecting the fees, and penalties/procedures for delinquent fees, should also be in a written policy.

Kathryn T. James, Attorney at Law FOLKESTAD FAZEKAS BARRICK & PATOILE, P.C. Castle Rock, Colorado 80104-1909