fiduciary duty

Started by JosephB • 6 replies • 2472 views

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JosephB (Pennsylvania)
Posts: 3

Posted:

Does the homeowner association corporation have any duty to keep association members (unit owners) informed of changes in state law (Colorado) that changes the obligations/rights of the owner or the obligations/rights of the association corporation?

Thanks

DaveD (Florida)
Posts: 15

Posted:

I doubt it, but frequent awareness notes make for an improved sense of community.

Dave

RogerB (Colorado)
Posts: 5,067

Posted:

JosephB, the answer is yes, IF they are aware of them. Unfortunately, self-managed associations may not be aware of laws which affect the owners, board, and association. In Colorado major changes were required by Senate Bill 05-100. This includes 7 specific Policies and Procedures (Rule & Regs) by 1/1/06. When these were approved by your board they should have been provided to every owner.

Roger

GeorgeM (Colorado)
Posts: 2

Posted:

As a director of a Colorado HOA, I've considered that question from the time of passage of SB100. The law is long, in many cases ambiguous, but its intent is clear. I see no obligation to "read" law to the electorate. Our duty will be well fulfilled by our publication of Policies and Procedures required by the law.

LuciusD
Posts: 139

Posted:

Of course they do. Check the annual owners education provision of SB-05-100.

ReneeD (Illinois)
Posts: 201

Posted:

Roger, does this apply to HOAs in Illinois and where would one begin looking for this sort of information? Thanks. ReneeD

RogerB (Colorado)
Posts: 5,067

Posted:

ReneeD, I'm not familiar with Illinois statutes. Ask your Managing Agent. Even if you are self-managed, you are legally responsible.

Also, your board has a duty even if they are not found to be personally responsible in a law suit. To protect the board, make sure the Articles of Incorporation have a good protective shield and have good D&O insurance. But failure to know the law does not protect the association when they do not comply and lose in court. One lost case could pay for the cost of a good Managing Agent for 10 or more years!

Roger

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