It seems that after months of negotiations, both sides have come to an agreement. A bipartisan bill which would require more notice to the homeowners when the Homeowners Association intends to file litigation against a homebuilder.
Hoping that the bipartisan agreement will give builders the confidence to start building multi-family housing again, and homeowners the protection to purchase a good quality product. I believe Management Companies and Homeowners alike would like to see fewer apartments being constructed and more condominium style Associations.
For years it seems developers have been building smaller size multi-family communities as a strategic plan to avoid large litigations. The unintended impact on communities of this size (fifty or fewer units), is the cost of management fees. Since licensing has become a requirement to be a community association manager in the State of Colorado, it is nearly impossible for small HOA’s to find management companies that want to manage them for a fee that the community considers affordable. The economy of scale and the economics just aren’t there, creating hardships for volunteer Board members, who now find themselves acting as full time property managers to save on costs.
I hope to see the new bipartisan agreement sponsored by Minority Leader Lucia Guzman, D-Denver, and Jack Tate, R-Centennial, will create the confidence for the development of larger condominium & townhome associations.
It does not appear that there will be an arbitration as substitute for litigation in this bill. Homeowners will continue to have access to the judicial system if defects are to be found on the property. The new bill also requires the majority of homeowners give their approval to move forward with litigation, and disclose the expected costs involved in the litigation including the impact it may have on home sales during litigation phase.