Selling Your Home
March 9, 2006
Denver office David A. Closson, Esq.
Lone Tree Homeowner's Associationc/o Board of Directors8471 Sweet Water
Lone Tree, CO 80124
Re: Applicability of CCIOA and SB-100
Our File No. 9912.001
Dear Members of the Board: The Board has requested HindmanSanchez P.C. to
provide a letter regarding the applicability of specific Colorado laws as
they may pertain to the Lone Tree Homeowner's Association. The Colorado
Common Interest Ownership Act ("CCIOA") governs the formation, management,
and operation of most Colorado associations and common interest
communities ("CIC"). Senate Bill 100 ("SB 100") is a new law that not only
amends several existing provisions of CCIOA, but it also adds entirely new
sections for board members to master. Associations subject to CCIOA are
required to come into compliance with the provisions of SB 100 effective
January 1, 2006.
However, CCIOA and SB100 do not apply, in any respect, to voluntary
associations in communities that do not fall within the definition of a
CIC. Therefore, it is important to understand whether or not your
community qualifies as a CIC under Colorado law. As CIC is defined by
Colorado law to include "Real estate described in a declaration with
respect to which a person, by virtue of such person's ownership of a unit,
is obligated to pay for real estate taxes, insurance premiums,
maintenance, or improvement of other real estate described in a
declaration". Put another way, regardless of whether an association has
common areas or common elements, if the payment of association assessments
is not mandatory, the community does not fall within the definition of a
CIC and neither CCIOA or SB 100 apply to the association.
Therefore, since members of the Lone Tree Homeowner's Association are not
required to pay assessments, under Colorado law the Lone Tree Homeowner's
Association is not a CIC and the association is not subject to the
provisions of CCIOA or SB 100.
Please feel free to contact the LTHOA if you have any further questions.
David A. Closson, Esq.
DAC/cnhc: Elina B. Hindley, Esq.