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Subject: Colorado laws regarding HOA contract
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Author Messages
DouglasK1
(Florida)

Posts:1193


07/01/2018 7:10 PM  
Posted By TutaN on 07/01/2018 6:27 PM

I went back and reviewed the contract again. One other major flaw I found is the fact that the contract does not include: “ The designated manager’s license number”. This omission is in violation of the Code of Colorado Regulations, Secretary of State, State of Colorado 4 CCR 725-7. Does this omission invalidates the current contract? Thank you again for your help.


Even if the contract were somehow invalid, or the MC has breached it somehow, it would really be up to the board to do something about it. If they don't then I suppose you could sue the board or MC or both, but it would probably be very expensive, take a lot of time, and be difficult to predict the outcome.

I doubt you are going to find a quick fix to your issues and concerns. As I mentioned previously I think the best thing to do would be to replace enough of the board to have a majority that feels the way you do.

Escaped former treasurer and director of a self managed association.
TutaN
(Colorado)

Posts:32


07/01/2018 7:24 PM  
I am trying to fix the problems I need to start somewhere....
JanetB2
(Colorado)

Posts:4151


07/01/2018 8:37 PM  
Posted By JanetB2 on 06/30/2018 1:00 AM
Posted By TutaN on 06/28/2018 12:58 PM
I would like to find out what Colorado laws give me the right to request review of the contract between our HOA and the Management Company.
Thank you for your help.


Colorado gives you the right to review any and all HOA documents. YOU and your fellow homeowners are paying for their service and have the right to see and review the contract.



Just found out:


On April 10, 2018, the Senate Committee on Finance of the Colorado Legislature voted to postpone indefinitely HB18-1175 (the Bill Concerning the Continuation of the Community Association Manager Program under the Sunset law). The effect of this vote means that the legislature will not continue the Community Association Manager (CAM) Program and will allow it to sunset.

Potentially Shame On Them ... an the HOA’a in Colorado neet to go after their Legislators on this issue. If our HOA has had concerns with regards to the Property Management Company ... then talk to our legislators.
KerryL1
(California)

Posts:5655


07/01/2018 8:39 PM  
Please, Tuta. Pay attention. FORGET the contract with the MC EXCEPT for how you want the Board to fix it OR enforce the contract. The Board! Why are you ignoring everyone who says the BOARD is the problem.
AugustinD


Posts:1088


07/01/2018 10:38 PM  
Posted By TutaN on 07/01/2018 6:27 PM
I went back and reviewed the contract again. One other major flaw I found is the fact that the contract does not include: “ The designated manager’s license number”. This omission is in violation of the Code of Colorado Regulations, Secretary of State, State of Colorado 4 CCR 725-7. Does this omission invalidates the current contract? Thank you again for your help.


Hi TutaN, I just reviewed 4 CCR 725-7 (http://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=3243&deptID=18&agencyID=98&deptName=..&agencyName=725%20Division%20of%20Real%20Estate&seriesNum=4%20CCR%20725-7). You are right that Section F-6 2) requires the contract between the HOA and manager to have the manager's license number. But I do not think the absence of the license number would invalidate the contract.

I think one option that you are free to exercise is contacting the Colorado Department of Regulatory Agencies, Division of Real Estate. You could tell them you have concerns about a HOA manager violating numerous rules. Have a list of the exact rules and laws you think are being violated. Ask if the Division of Real Estate has any say about this. Be super polite and patient (you sound like you are). On the one hand, it is likely the state staff will realize that you are a disgruntled HOA member. On the other hand, why do these regulations exist? The state might want to look into this manager. On the third hand, I confess, at the moment I do not feel trying to get action from a state regulatory agency is going to get you what you want. It sounds like what you want is for the manager to do her/his job, as given in the contract. I tend to think the best way to make this happen is to get a new board. This means enlisting support from your fellow members.

One reason I take your questions seriously is because I think it is way too common to have HOA managers turn out to be embezzlers or criminal in other ways. It seems like I read of about one case a month. Perhaps Colorado's rules are an attempt to thwart such theft. So why not test the waters a bit? Just be ready for the staff to not take you seriously. Then again, they may take your concerns seriously.

You say the manager's license recently expired. I think I would bear in mind that the paperwork for renewal might have been delayed.
TutaN
(Colorado)

Posts:32


07/02/2018 7:15 AM  
Posted By KerryL1 on 07/01/2018 8:39 PM
Please, Tuta. Pay attention. FORGET the contract with the MC EXCEPT for how you want the Board to fix it OR enforce the contract. The Board! Why are you ignoring everyone who says the BOARD is the problem.




Kerry, please understand that I am not ignoring anybody. This is not my intention, and that is not the reason to be here. I understand that the Board is the main issue. In order to be able to fix problems I need to stop being gullible, and learn what are the duties and responsibilities of each party. Thank you.
TutaN
(Colorado)

Posts:32


07/02/2018 7:29 AM  
Posted By AugustinD on 07/01/2018 10:38 PM
Posted By TutaN on 07/01/2018 6:27 PM
I went back and reviewed the contract again. One other major flaw I found is the fact that the contract does not include: “ The designated manager’s license number”. This omission is in violation of the Code of Colorado Regulations, Secretary of State, State of Colorado 4 CCR 725-7. Does this omission invalidates the current contract? Thank you again for your help.


Hi TutaN, I just reviewed 4 CCR 725-7 (http://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=3243&deptID=18&agencyID=98&deptName=..&agencyName=725%20Division%20of%20Real%20Estate&seriesNum=4%20CCR%20725-7). You are right that Section F-6 2) requires the contract between the HOA and manager to have the manager's license number. But I do not think the absence of the license number would invalidate the contract.

I think one option that you are free to exercise is contacting the Colorado Department of Regulatory Agencies, Division of Real Estate. You could tell them you have concerns about a HOA manager violating numerous rules. Have a list of the exact rules and laws you think are being violated. Ask if the Division of Real Estate has any say about this. Be super polite and patient (you sound like you are). On the one hand, it is likely the state staff will realize that you are a disgruntled HOA member. On the other hand, why do these regulations exist? The state might want to look into this manager. On the third hand, I confess, at the moment I do not feel trying to get action from a state regulatory agency is going to get you what you want. It sounds like what you want is for the manager to do her/his job, as given in the contract. I tend to think the best way to make this happen is to get a new board. This means enlisting support from your fellow members.

One reason I take your questions seriously is because I think it is way too common to have HOA managers turn out to be embezzlers or criminal in other ways. It seems like I read of about one case a month. Perhaps Colorado's rules are an attempt to thwart such theft. So why not test the waters a bit? Just be ready for the staff to not take you seriously. Then again, they may take your concerns seriously.

You say the manager's license recently expired. I think I would bear in mind that the paperwork for renewal might have been delayed.




Augustin, thank you for the very sound advise. Just a quick update. I Just received an acknowledgement from the HOA Board president.

"The xxxHOA Board has received your email messages outlining your concerns related to our contract with xxxMC. The Board will be looking into these issues.
Thank you for your input, xxxHOA Board President"

We'll see their response on this. I will take your advise and contact DORA today. It is better to be ahead of the game, so people cannot pull the wool over our eyes. It seems that when you trust people they can disappoint you. Thank you again for your help. It is very much appreciated.

JanetB2
(Colorado)

Posts:4151


07/03/2018 8:40 AM  
File a complaint with DORA. You can file a complaint here: https://www.colorado.gov/pacific/dora/node/97701

Also, I would recommend you send correspondence via “Certified Return Receipt” when requesting anything. This way the Management Company and the HOA when copied needs to sign for the letter. This will insure you have proof that your correspondence was received and exactly when it was received.
AugustinD


Posts:1088


07/03/2018 10:03 AM  
Posted By JanetB2 on 07/03/2018 8:40 AM
File a complaint with DORA. You can file a complaint here: https://www.colorado.gov/pacific/dora/node/97701


Do you know anyone who did this? If so, what kind of response did they get?
JanetB2
(Colorado)

Posts:4151


07/03/2018 10:10 AM  
Posted By AugustinD on 07/03/2018 10:03 AM
Posted By JanetB2 on 07/03/2018 8:40 AM
File a complaint with DORA. You can file a complaint here: https://www.colorado.gov/pacific/dora/node/97701


Do you know anyone who did this? If so, what kind of response did they get?


I do not know of anyone with regards to the newer Management Company division. I know of many who filed with regards to HOA’s when they first started tracking and requiring state registration for HOA’s. However, for HOA’s DORA could not give legal advice ... they were mainly tracking type of complaints to see what needed to be changed in Statutes per my past number of conversations with their HOA Division. Because of all the Management Company complaints is potentially why they are now regulated in Colorado.
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