The Pines Homeowners Association is Non-Profit
Like any social welfare organization, a homeowners’ association described under Section 501(c)(4) is required to be operated exclusively for the promotion of social welfare by primarily promoting the common good and general welfare of the people of the community.
Residents of The Pines value the kind consideration of our neighbors, the natural and nature oriented environment found in our rural setting, and a neighborhood that is considered a desirable place to live.
We encourage an association of neighbors who voluntarily work together to increase property values and promote the spirit of respect and community.
Our association takes actions to maintain a safe, friendly and aesthetically pleasing place to live.
Some of the ways we’ve promoted these concepts in our community has been open communication with homeowners, member meetings, community picnics, and various services offered periodically to members for the benefit of improving our properties.
We strive to keep dues as low as possible. This means as HOA dues paying members, occasional services are announced and offered for free. Non-HOA members in the community are offered those services for a fee that represents a portion of the cost to the community.
Membership forms are available to print if you are interested in partnering with us!
Check the website or announcement boards located by our mailboxes to see if there are any upcoming events.
Like any social welfare organization, a homeowners’ association described under Section 501(c)(4) is required to be operated exclusively for the promotion of social welfare by primarily promoting the common good and general welfare of the people of the community.
Residents of The Pines value the kind consideration of our neighbors, the natural and nature oriented environment found in our rural setting, and a neighborhood that is considered a desirable place to live.
We encourage an association of neighbors who voluntarily work together to increase property values and promote the spirit of respect and community.
Our association takes actions to maintain a safe, friendly and aesthetically pleasing place to live.
Some of the ways we’ve promoted these concepts in our community has been open communication with homeowners, member meetings, community picnics, and various services offered periodically to members for the benefit of improving our properties.
We strive to keep dues as low as possible. This means as HOA dues paying members, occasional services are announced and offered for free. Non-HOA members in the community are offered those services for a fee that represents a portion of the cost to the community.
Membership forms are available to print if you are interested in partnering with us!
Check the website or announcement boards located by our mailboxes to see if there are any upcoming events.
| thepineshoamembershipforms.pdf |
State of Colorado
C.R.S. 7-128-401
COLORADO REVISED STATUTES
*** This document reflects changes current through all
laws passed at the First Regular Session
of the Sixty-Ninth
General Assembly of the State of Colorado (2013) ***
TITLE 7. CORPORATIONS AND ASSOCIATIONS
CORPORATIONS
- Continued
ARTICLE 128. DIRECTORS AND OFFICERS
PART 4. STANDARDS OF CONDUCT
C.R.S. 7-128-401 (2013)
7-128-401. General standards of conduct for directors and officers
(1) Each director shall
discharge the director's duties as a director, including the director's duties
as a member of a committee of the board, and each officer with discretionary
authority shall discharge the officer's duties under that authority:
(a) In good faith;
(b) With the care an
ordinarily prudent person in a like position would exercise under similar
circumstances; and
(c) In a manner the director or
officer reasonably believes to be in the best interests of the nonprofit
corporation.
(2) In discharging duties, a director
or officer is entitled to rely on information, opinions, reports, or statements,
including financial statements and other financial data, if prepared or
presented by:
(a) One or more officers or employees
of the nonprofit corporation whom the director or officer reasonably believes to
be reliable and competent in the matters presented;
(b) Legal counsel, a public accountant, or another person as to
matters the director or officer reasonably believes are within such person's
professional or expert competence;
(c) Religious
authorities or ministers, priests, rabbis, or other persons whose position or
duties in the nonprofit corporation, or in a religious organization with which
the nonprofit corporation is affiliated, the director or officer believes
justify reliance and confidence and who the director or officer believes to be
reliable and competent in the matters presented; or
(d) In the case of a director, a committee of the board of directors
of which the director is not a member if the director reasonably believes the
committee merits confidence.
(3) A director or
officer is not acting in good faith if the director or officer has knowledge
concerning the matter in question that makes reliance otherwise permitted by
subsection (2) of this section unwarranted.
(4) A
director or officer is not liable as such to the nonprofit corporation or its
members for any action taken or omitted to be taken as a director or officer, as
the case may be, if, in connection with such action or omission, the director or
officer performed the duties of the position in compliance with this section.
(5) A director, regardless of title, shall not be
deemed to be a trustee with respect to the nonprofit corporation or with respect
to any property held or administered by the nonprofit corporation including,
without limitation, property that may be subject to restrictions imposed by the
donor or transferor of such property.
(6) A
director or officer of a nonprofit corporation, in the performance of duties in
that capacity, shall not have any fiduciary duty to any creditor of the
nonprofit corporation arising only from the status as a creditor.
(7) No person shall be liable in contract or tort
merely by reason of being a director, officer, or member of a nonprofit
corporation that was suspended, declared defunct, administratively dissolved, or
dissolved by operation of law, and the business or activities of which have been
continued for nonprofit purposes, with or without knowledge of the suspension,
declaration, or dissolution, and the business and activities of which have not
been wound up.
HISTORY: Source: L. 97: Entire article added, p.
698, § 3, effective July 1, 1998.L. 2006: (6) and (7) added, p. 882, § 81,
effective July 1.
Cross references: For definitions applicable to this article, see § § 7-90-102 and 7-121-401.
Editor's note: Subsections (6) and (7) were originally enacted as
subsections (5) and (6) respectively in Senate Bill 06-187 but were renumbered
on revision for ease of location.
C.R.S. 38-33.3-303
COLORADO REVISED STATUTES
*** This document reflects changes current through all
laws passed at the First Regular Session
of the Sixty-Ninth
General Assembly of the State of Colorado (2013) ***
TITLE 38. PROPERTY - REAL AND PERSONAL
REAL
PROPERTY
ARTICLE 33.3. COLORADO COMMON INTEREST OWNERSHIP
ACT
PART 3. MANAGEMENT OF THE COMMON INTEREST
COMMUNITY
C.R.S. 38-33.3-303 (2013)
38-33.3-303. Executive board members and officers - powers and duties
- reserve funds - reserve study - audit
(1) (a) Except as provided in the declaration, the bylaws, or
subsection (3) of this section or any other provisions of this article, the
executive board may act in all instances on behalf of the association.
(b) Notwithstanding any provision of the declaration or bylaws to the
contrary, all members of the executive board shall have available to them all
information related to the responsibilities and operation of the association
obtained by any other member of the executive board. This information shall
include, but is not necessarily limited to, reports of detailed monthly
expenditures, contracts to which the association is a party, and copies of
communications, reports, and opinions to and from any member of the executive
board or any managing agent, attorney, or accountant employed or engaged by the
executive board to whom the executive board delegates responsibilities under
this article.
(2) Except as otherwise provided in
subsection (2.5) of this section:
(a) If appointed
by the declarant, in the performance of their duties, the officers and members
of the executive board are required to exercise the care required of fiduciaries
of the unit owners.
(b) If not appointed by the
declarant, no member of the executive board and no officer shall be liable for
actions taken or omissions made in the performance of such member's duties
except for wanton and willful acts or omissions.
(2.5) With regard to the investment of reserve funds of the
association, the officers and members of the executive board shall be subject to
the standards set forth in section 7-128-401,
C.R.S.; except that, as used in that section:
(a) "Corporation" or "nonprofit corporation" means the
association.
(b) "Director" means a member of the
association's executive board.
(c) "Officer" means
any person designated as an officer of the association and any person to whom
the executive board delegates responsibilities under this article, including,
without limitation, a managing agent, attorney, or accountant employed by the
executive board.
(3) (a) The executive board may
not act on behalf of the association to amend the declaration, to terminate the
common interest community, or to elect members of the executive board or
determine the qualifications, powers and duties, or terms of office of executive
board members, but the executive board may fill vacancies in its membership for
the unexpired portion of any term.
(b) Committees
of the association shall be appointed pursuant to the governing documents of the
association or, if the governing documents contain no applicable provisions,
pursuant to section 7-128-206, C.R.S. The person appointed
after August 15, 2009, to preside over any such committee shall meet the same
qualifications as are required by the governing documents of the association for
election or appointment to the executive board of the association.
(4) (a) Within ninety days after adoption of any
proposed budget for the common interest community, the executive board shall
mail, by ordinary first-class mail, or otherwise deliver a summary of the budget
to all the unit owners and shall set a date for a meeting of the unit owners to
consider the budget. Such meeting shall occur within a reasonable time after
mailing or other delivery of the summary, or as allowed for in the bylaws. The
executive board shall give notice to the unit owners of the meeting as allowed
for in the bylaws. Unless the declaration requires otherwise, the budget
proposed by the executive board does not require approval from the unit owners
and it will be deemed approved by the unit owners in the absence of a veto at
the noticed meeting by a majority of all unit owners, or if permitted in the
declaration, a majority of a class of unit owners, or any larger percentage
specified in the declaration, whether or not a quorum is present. In the event
that the proposed budget is vetoed, the periodic budget last proposed by the
executive board and not vetoed by the unit owners must be continued until a
subsequent budget proposed by the executive board is not vetoed by the unit
owners.
(b) (I) At the discretion of the executive
board or upon request pursuant to subparagraph (II) or (III) of this paragraph
(b) as applicable, the books and records of the association shall be subject to
an audit, using generally accepted auditing standards, or a review, using
statements on standards for accounting and review services, by an independent
and qualified person selected by the board. Such person need not be a certified
public accountant except in the case of an audit. A person selected to conduct a
review shall have at least a basic understanding of the principles of accounting
as a result of prior business experience, education above the high school level,
or bona fide home study. The audit or review report shall cover the
association's financial statements, which shall be prepared using generally
accepted accounting principles or the cash or tax basis of accounting.
(II) An audit shall be required under this paragraph (b) only when
both of the following conditions are met:
(A) The
association has annual revenues or expenditures of at least two hundred fifty
thousand dollars; and
(B) An audit is requested by
the owners of at least one-third of the units represented by the association.
(III) A review shall be required under this paragraph
(b) only when requested by the owners of at least one-third of the units
represented by the association.
(IV) Copies of an
audit or review under this paragraph (b) shall be made available upon request to
any unit owner beginning no later than thirty days after its completion.
(V) Notwithstanding section 38-33.3-117 (1.5) (h), this paragraph (b)
shall not apply to an association that includes time-share units, as defined in
section 38-33-110 (7).
(5)
(a) Subject to subsection (6) of this section:
(I)
The declaration, except a declaration for a large planned community, may provide
for a period of declarant control of the association, during which period a
declarant, or persons designated by such declarant, may appoint and remove the
officers and members of the executive board. Regardless of the period of
declarant control provided in the declaration, a period of declarant control
terminates no later than the earlier of sixty days after conveyance of
seventy-five percent of the units that may be created to unit owners other than
a declarant, two years after the last conveyance of a unit by the declarant in
the ordinary course of business, or two years after any right to add new units
was last exercised.
(II) The declaration for a
large planned community may provide for a period of declarant control of the
association during which period a declarant, or persons designated by such
declarant, may appoint and remove the officers and members of the executive
board. Regardless of the period of declarant control provided in the
declaration, a period of declarant control terminates in a large planned
community no later than the earlier of sixty days after conveyance of
seventy-five percent of the maximum number of units that may be created under
zoning or other governmental development approvals in effect for the large
planned community at any given time to unit owners other than a declarant, six
years after the last conveyance of a unit by the declarant in the ordinary
course of business, or twenty years after recordation of the declaration.
(b) A declarant may voluntarily surrender the right to
appoint and remove officers and members of the executive board before
termination of the period of declarant control, but, in that event, the
declarant may require, for the duration of the period of declarant control, that
specified actions of the association or executive board, as described in a
recorded instrument executed by the declarant, be approved by the declarant
before they become effective.
(c) If a period of
declarant control is to terminate in a large planned community pursuant to
subparagraph (II) of paragraph (a) of this subsection (5), the declarant, or
persons designated by the declarant, shall no longer have the right to appoint
and remove the officers and members of the executive board unless, prior to the
termination date, the association approves an extension of the declarant's
ability to appoint and remove no more than a majority of the executive board by
vote of a majority of the votes entitled to be cast in person or by proxy, other
than by the declarant, at a meeting duly convened as required by law. Any such
approval by the association may contain conditions and limitations. Such
extension of declarant's appointment and removal power, together with any
conditions and limitations approved as provided in this paragraph (c), shall be
included in an amendment to the declaration previously executed by the
declarant.
(6) Not later than sixty days after
conveyance of twenty-five percent of the units that may be created to unit
owners other than a declarant, at least one member and not less than twenty-five
percent of the members of the executive board must be elected by unit owners
other than the declarant. Not later than sixty days after conveyance of fifty
percent of the units that may be created to unit owners other than a declarant,
not less than thirty-three and one-third percent of the members of the executive
board must be elected by unit owners other than the declarant.
(7) Except as otherwise provided in section 38-33.3-220 (5), not later than the
termination of any period of declarant control, the unit owners shall elect an
executive board of at least three members, at least a majority of whom must be
unit owners other than the declarant or designated representatives of unit
owners other than the declarant. The executive board shall elect the officers.
The executive board members and officers shall take office upon election.
(8) Notwithstanding any provision of the declaration
or bylaws to the contrary, the unit owners, by a vote of sixty-seven percent of
all persons present and entitled to vote at any meeting of the unit owners at
which a quorum is present, may remove any member of the executive board with or
without cause, other than a member appointed by the declarant or a member
elected pursuant to a class vote under section 38-33.3-207 (4).
(9)
Within sixty days after the unit owners other than the declarant elect a
majority of the members of the executive board, the declarant shall deliver to
the association all property of the unit owners and of the association held by
or controlled by the declarant, including without limitation the following
items:
(a) The original or a certified copy of the
recorded declaration as amended, the association's articles of incorporation, if
the association is incorporated, bylaws, minute books, other books and records,
and any rules and regulations which may have been promulgated;
(b) An accounting for association funds and financial statements,
from the date the association received funds and ending on the date the period
of declarant control ends. The financial statements shall be audited by an
independent certified public accountant and shall be accompanied by the
accountant's letter, expressing either the opinion that the financial statements
present fairly the financial position of the association in conformity with
generally accepted accounting principles or a disclaimer of the accountant's
ability to attest to the fairness of the presentation of the financial
information in conformity with generally accepted accounting principles and the
reasons therefor. The expense of the audit shall not be paid for or charged to
the association.
(c) The association funds or
control thereof;
(d) All of the declarant's
tangible personal property that has been represented by the declarant to be the
property of the association or all of the declarant's tangible personal property
that is necessary for, and has been used exclusively in, the operation and
enjoyment of the common elements, and inventories of these properties;
(e) A copy, for the nonexclusive use by the association, of any plans
and specifications used in the construction of the improvements in the common
interest community;
(f) All insurance policies then
in force, in which the unit owners, the association, or its directors and
officers are named as insured persons;
(g) Copies
of any certificates of occupancy that may have been issued with respect to any
improvements comprising the common interest community;
(h)
Any other permits issued by governmental bodies applicable to the common
interest community and which are currently in force or which were issued within
one year prior to the date on which unit owners other than the declarant took
control of the association;
(i) Written warranties
of the contractor, subcontractors, suppliers, and manufacturers that are still
effective;
(j) A roster of unit owners and
mortgagees and their addresses and telephone numbers, if known, as shown on the
declarant's records;
(k) Employment contracts in
which the association is a contracting party;
(l)
Any service contract in which the association is a contracting party or in which
the association or the unit owners have any obligation to pay a fee to the
persons performing the services; and
(m) For large
planned communities, copies of all recorded deeds and all recorded and
unrecorded leases evidencing ownership or leasehold rights of the large planned
community unit owners' association in all common elements within the large
planned community.
HISTORY: Source: L. 91: Entire article added, p.
1737, § 1, effective July 1, 1992.L. 93: (7), (8), and (9)(e) amended, p. 651, §
16, effective April 30.L. 94: (5) and (8) amended, p. 2848, § 5, effective July
1.L. 95: (5)(a), (9)(k), and (9)(l) amended and (5)(c) and (9)(m) added, pp.
238, 239, § § 5, 6, effective July 1.L. 2002: (4) and (5)(a)(I) amended, p. 768,
§ 4, effective August 7.L. 2005: (4) amended, p. 1383, § 13, effective January
1, 2006.L. 2006: (2) and (4)(b) amended and (2.5) added, p. 1221, § 9, effective
May 26.L. 2009: (1) and (3) amended, (HB 09-1359), ch. 257, p. 1164, § 2, effective
August 5.
ANNOTATION
Director did not breach fiduciary duty to homeowners'
association, although a director of the association, by installing a satellite
dish in violation of a covenant, where the plan was submitted for approval,
approval was granted, and director was not involved in the decision whether to
grant initial approval for the dish. Woodmoor Improvement Ass'n v. Brenner, 919
P.2d 928 (Colo. App. 1996).
COLORADO REVISED STATUTES
*** This document reflects changes current through all
laws passed at the First Regular Session
of the Sixty-Ninth
General Assembly of the State of Colorado (2013) ***
TITLE 7. CORPORATIONS AND ASSOCIATIONS
CORPORATIONS
- Continued
ARTICLE 128. DIRECTORS AND OFFICERS
PART 4. STANDARDS OF CONDUCT
C.R.S. 7-128-401 (2013)
7-128-401. General standards of conduct for directors and officers
(1) Each director shall
discharge the director's duties as a director, including the director's duties
as a member of a committee of the board, and each officer with discretionary
authority shall discharge the officer's duties under that authority:
(a) In good faith;
(b) With the care an
ordinarily prudent person in a like position would exercise under similar
circumstances; and
(c) In a manner the director or
officer reasonably believes to be in the best interests of the nonprofit
corporation.
(2) In discharging duties, a director
or officer is entitled to rely on information, opinions, reports, or statements,
including financial statements and other financial data, if prepared or
presented by:
(a) One or more officers or employees
of the nonprofit corporation whom the director or officer reasonably believes to
be reliable and competent in the matters presented;
(b) Legal counsel, a public accountant, or another person as to
matters the director or officer reasonably believes are within such person's
professional or expert competence;
(c) Religious
authorities or ministers, priests, rabbis, or other persons whose position or
duties in the nonprofit corporation, or in a religious organization with which
the nonprofit corporation is affiliated, the director or officer believes
justify reliance and confidence and who the director or officer believes to be
reliable and competent in the matters presented; or
(d) In the case of a director, a committee of the board of directors
of which the director is not a member if the director reasonably believes the
committee merits confidence.
(3) A director or
officer is not acting in good faith if the director or officer has knowledge
concerning the matter in question that makes reliance otherwise permitted by
subsection (2) of this section unwarranted.
(4) A
director or officer is not liable as such to the nonprofit corporation or its
members for any action taken or omitted to be taken as a director or officer, as
the case may be, if, in connection with such action or omission, the director or
officer performed the duties of the position in compliance with this section.
(5) A director, regardless of title, shall not be
deemed to be a trustee with respect to the nonprofit corporation or with respect
to any property held or administered by the nonprofit corporation including,
without limitation, property that may be subject to restrictions imposed by the
donor or transferor of such property.
(6) A
director or officer of a nonprofit corporation, in the performance of duties in
that capacity, shall not have any fiduciary duty to any creditor of the
nonprofit corporation arising only from the status as a creditor.
(7) No person shall be liable in contract or tort
merely by reason of being a director, officer, or member of a nonprofit
corporation that was suspended, declared defunct, administratively dissolved, or
dissolved by operation of law, and the business or activities of which have been
continued for nonprofit purposes, with or without knowledge of the suspension,
declaration, or dissolution, and the business and activities of which have not
been wound up.
HISTORY: Source: L. 97: Entire article added, p.
698, § 3, effective July 1, 1998.L. 2006: (6) and (7) added, p. 882, § 81,
effective July 1.
Cross references: For definitions applicable to this article, see § § 7-90-102 and 7-121-401.
Editor's note: Subsections (6) and (7) were originally enacted as
subsections (5) and (6) respectively in Senate Bill 06-187 but were renumbered
on revision for ease of location.
C.R.S. 38-33.3-303
COLORADO REVISED STATUTES
*** This document reflects changes current through all
laws passed at the First Regular Session
of the Sixty-Ninth
General Assembly of the State of Colorado (2013) ***
TITLE 38. PROPERTY - REAL AND PERSONAL
REAL
PROPERTY
ARTICLE 33.3. COLORADO COMMON INTEREST OWNERSHIP
ACT
PART 3. MANAGEMENT OF THE COMMON INTEREST
COMMUNITY
C.R.S. 38-33.3-303 (2013)
38-33.3-303. Executive board members and officers - powers and duties
- reserve funds - reserve study - audit
(1) (a) Except as provided in the declaration, the bylaws, or
subsection (3) of this section or any other provisions of this article, the
executive board may act in all instances on behalf of the association.
(b) Notwithstanding any provision of the declaration or bylaws to the
contrary, all members of the executive board shall have available to them all
information related to the responsibilities and operation of the association
obtained by any other member of the executive board. This information shall
include, but is not necessarily limited to, reports of detailed monthly
expenditures, contracts to which the association is a party, and copies of
communications, reports, and opinions to and from any member of the executive
board or any managing agent, attorney, or accountant employed or engaged by the
executive board to whom the executive board delegates responsibilities under
this article.
(2) Except as otherwise provided in
subsection (2.5) of this section:
(a) If appointed
by the declarant, in the performance of their duties, the officers and members
of the executive board are required to exercise the care required of fiduciaries
of the unit owners.
(b) If not appointed by the
declarant, no member of the executive board and no officer shall be liable for
actions taken or omissions made in the performance of such member's duties
except for wanton and willful acts or omissions.
(2.5) With regard to the investment of reserve funds of the
association, the officers and members of the executive board shall be subject to
the standards set forth in section 7-128-401,
C.R.S.; except that, as used in that section:
(a) "Corporation" or "nonprofit corporation" means the
association.
(b) "Director" means a member of the
association's executive board.
(c) "Officer" means
any person designated as an officer of the association and any person to whom
the executive board delegates responsibilities under this article, including,
without limitation, a managing agent, attorney, or accountant employed by the
executive board.
(3) (a) The executive board may
not act on behalf of the association to amend the declaration, to terminate the
common interest community, or to elect members of the executive board or
determine the qualifications, powers and duties, or terms of office of executive
board members, but the executive board may fill vacancies in its membership for
the unexpired portion of any term.
(b) Committees
of the association shall be appointed pursuant to the governing documents of the
association or, if the governing documents contain no applicable provisions,
pursuant to section 7-128-206, C.R.S. The person appointed
after August 15, 2009, to preside over any such committee shall meet the same
qualifications as are required by the governing documents of the association for
election or appointment to the executive board of the association.
(4) (a) Within ninety days after adoption of any
proposed budget for the common interest community, the executive board shall
mail, by ordinary first-class mail, or otherwise deliver a summary of the budget
to all the unit owners and shall set a date for a meeting of the unit owners to
consider the budget. Such meeting shall occur within a reasonable time after
mailing or other delivery of the summary, or as allowed for in the bylaws. The
executive board shall give notice to the unit owners of the meeting as allowed
for in the bylaws. Unless the declaration requires otherwise, the budget
proposed by the executive board does not require approval from the unit owners
and it will be deemed approved by the unit owners in the absence of a veto at
the noticed meeting by a majority of all unit owners, or if permitted in the
declaration, a majority of a class of unit owners, or any larger percentage
specified in the declaration, whether or not a quorum is present. In the event
that the proposed budget is vetoed, the periodic budget last proposed by the
executive board and not vetoed by the unit owners must be continued until a
subsequent budget proposed by the executive board is not vetoed by the unit
owners.
(b) (I) At the discretion of the executive
board or upon request pursuant to subparagraph (II) or (III) of this paragraph
(b) as applicable, the books and records of the association shall be subject to
an audit, using generally accepted auditing standards, or a review, using
statements on standards for accounting and review services, by an independent
and qualified person selected by the board. Such person need not be a certified
public accountant except in the case of an audit. A person selected to conduct a
review shall have at least a basic understanding of the principles of accounting
as a result of prior business experience, education above the high school level,
or bona fide home study. The audit or review report shall cover the
association's financial statements, which shall be prepared using generally
accepted accounting principles or the cash or tax basis of accounting.
(II) An audit shall be required under this paragraph (b) only when
both of the following conditions are met:
(A) The
association has annual revenues or expenditures of at least two hundred fifty
thousand dollars; and
(B) An audit is requested by
the owners of at least one-third of the units represented by the association.
(III) A review shall be required under this paragraph
(b) only when requested by the owners of at least one-third of the units
represented by the association.
(IV) Copies of an
audit or review under this paragraph (b) shall be made available upon request to
any unit owner beginning no later than thirty days after its completion.
(V) Notwithstanding section 38-33.3-117 (1.5) (h), this paragraph (b)
shall not apply to an association that includes time-share units, as defined in
section 38-33-110 (7).
(5)
(a) Subject to subsection (6) of this section:
(I)
The declaration, except a declaration for a large planned community, may provide
for a period of declarant control of the association, during which period a
declarant, or persons designated by such declarant, may appoint and remove the
officers and members of the executive board. Regardless of the period of
declarant control provided in the declaration, a period of declarant control
terminates no later than the earlier of sixty days after conveyance of
seventy-five percent of the units that may be created to unit owners other than
a declarant, two years after the last conveyance of a unit by the declarant in
the ordinary course of business, or two years after any right to add new units
was last exercised.
(II) The declaration for a
large planned community may provide for a period of declarant control of the
association during which period a declarant, or persons designated by such
declarant, may appoint and remove the officers and members of the executive
board. Regardless of the period of declarant control provided in the
declaration, a period of declarant control terminates in a large planned
community no later than the earlier of sixty days after conveyance of
seventy-five percent of the maximum number of units that may be created under
zoning or other governmental development approvals in effect for the large
planned community at any given time to unit owners other than a declarant, six
years after the last conveyance of a unit by the declarant in the ordinary
course of business, or twenty years after recordation of the declaration.
(b) A declarant may voluntarily surrender the right to
appoint and remove officers and members of the executive board before
termination of the period of declarant control, but, in that event, the
declarant may require, for the duration of the period of declarant control, that
specified actions of the association or executive board, as described in a
recorded instrument executed by the declarant, be approved by the declarant
before they become effective.
(c) If a period of
declarant control is to terminate in a large planned community pursuant to
subparagraph (II) of paragraph (a) of this subsection (5), the declarant, or
persons designated by the declarant, shall no longer have the right to appoint
and remove the officers and members of the executive board unless, prior to the
termination date, the association approves an extension of the declarant's
ability to appoint and remove no more than a majority of the executive board by
vote of a majority of the votes entitled to be cast in person or by proxy, other
than by the declarant, at a meeting duly convened as required by law. Any such
approval by the association may contain conditions and limitations. Such
extension of declarant's appointment and removal power, together with any
conditions and limitations approved as provided in this paragraph (c), shall be
included in an amendment to the declaration previously executed by the
declarant.
(6) Not later than sixty days after
conveyance of twenty-five percent of the units that may be created to unit
owners other than a declarant, at least one member and not less than twenty-five
percent of the members of the executive board must be elected by unit owners
other than the declarant. Not later than sixty days after conveyance of fifty
percent of the units that may be created to unit owners other than a declarant,
not less than thirty-three and one-third percent of the members of the executive
board must be elected by unit owners other than the declarant.
(7) Except as otherwise provided in section 38-33.3-220 (5), not later than the
termination of any period of declarant control, the unit owners shall elect an
executive board of at least three members, at least a majority of whom must be
unit owners other than the declarant or designated representatives of unit
owners other than the declarant. The executive board shall elect the officers.
The executive board members and officers shall take office upon election.
(8) Notwithstanding any provision of the declaration
or bylaws to the contrary, the unit owners, by a vote of sixty-seven percent of
all persons present and entitled to vote at any meeting of the unit owners at
which a quorum is present, may remove any member of the executive board with or
without cause, other than a member appointed by the declarant or a member
elected pursuant to a class vote under section 38-33.3-207 (4).
(9)
Within sixty days after the unit owners other than the declarant elect a
majority of the members of the executive board, the declarant shall deliver to
the association all property of the unit owners and of the association held by
or controlled by the declarant, including without limitation the following
items:
(a) The original or a certified copy of the
recorded declaration as amended, the association's articles of incorporation, if
the association is incorporated, bylaws, minute books, other books and records,
and any rules and regulations which may have been promulgated;
(b) An accounting for association funds and financial statements,
from the date the association received funds and ending on the date the period
of declarant control ends. The financial statements shall be audited by an
independent certified public accountant and shall be accompanied by the
accountant's letter, expressing either the opinion that the financial statements
present fairly the financial position of the association in conformity with
generally accepted accounting principles or a disclaimer of the accountant's
ability to attest to the fairness of the presentation of the financial
information in conformity with generally accepted accounting principles and the
reasons therefor. The expense of the audit shall not be paid for or charged to
the association.
(c) The association funds or
control thereof;
(d) All of the declarant's
tangible personal property that has been represented by the declarant to be the
property of the association or all of the declarant's tangible personal property
that is necessary for, and has been used exclusively in, the operation and
enjoyment of the common elements, and inventories of these properties;
(e) A copy, for the nonexclusive use by the association, of any plans
and specifications used in the construction of the improvements in the common
interest community;
(f) All insurance policies then
in force, in which the unit owners, the association, or its directors and
officers are named as insured persons;
(g) Copies
of any certificates of occupancy that may have been issued with respect to any
improvements comprising the common interest community;
(h)
Any other permits issued by governmental bodies applicable to the common
interest community and which are currently in force or which were issued within
one year prior to the date on which unit owners other than the declarant took
control of the association;
(i) Written warranties
of the contractor, subcontractors, suppliers, and manufacturers that are still
effective;
(j) A roster of unit owners and
mortgagees and their addresses and telephone numbers, if known, as shown on the
declarant's records;
(k) Employment contracts in
which the association is a contracting party;
(l)
Any service contract in which the association is a contracting party or in which
the association or the unit owners have any obligation to pay a fee to the
persons performing the services; and
(m) For large
planned communities, copies of all recorded deeds and all recorded and
unrecorded leases evidencing ownership or leasehold rights of the large planned
community unit owners' association in all common elements within the large
planned community.
HISTORY: Source: L. 91: Entire article added, p.
1737, § 1, effective July 1, 1992.L. 93: (7), (8), and (9)(e) amended, p. 651, §
16, effective April 30.L. 94: (5) and (8) amended, p. 2848, § 5, effective July
1.L. 95: (5)(a), (9)(k), and (9)(l) amended and (5)(c) and (9)(m) added, pp.
238, 239, § § 5, 6, effective July 1.L. 2002: (4) and (5)(a)(I) amended, p. 768,
§ 4, effective August 7.L. 2005: (4) amended, p. 1383, § 13, effective January
1, 2006.L. 2006: (2) and (4)(b) amended and (2.5) added, p. 1221, § 9, effective
May 26.L. 2009: (1) and (3) amended, (HB 09-1359), ch. 257, p. 1164, § 2, effective
August 5.
ANNOTATION
Director did not breach fiduciary duty to homeowners'
association, although a director of the association, by installing a satellite
dish in violation of a covenant, where the plan was submitted for approval,
approval was granted, and director was not involved in the decision whether to
grant initial approval for the dish. Woodmoor Improvement Ass'n v. Brenner, 919
P.2d 928 (Colo. App. 1996).
