Homeowner associations (HOAs) are a common feature in many neighborhoods and communities across Colorado. They are typically governed by boards of directors made up of residents who are elected by their fellow homeowners. HOAs play a crucial role in maintaining the common areas of a neighborhood, such as roofs, pools, and other shared assets. They also enforce rules and regulations that residents must follow while living in the community.
In Colorado, between 40% and 45% of the population lives in HOAs, with over 8,000 registered associations and more than 900,000 units. However, despite their prevalence, HOAs can sometimes be a source of frustration for residents. Common complaints include lack of communication, maintenance issues, excessive fees, and foreclosures. Residents often struggle to get answers from HOA boards and management companies about important matters such as rising monthly dues and financial transparency.
One of the key challenges facing HOAs in Colorado is the issue of soaring home insurance rates, which are driving up monthly dues for homeowners. This has put financial strain on many residents, particularly those living in older multifamily buildings that have been hit hard by insurance rate hikes. As a result, some homeowners are facing foreclosure or the prospect of having to find a new home in one of the state’s expensive housing markets.
Legislators and residents alike are pushing for more accountability and transparency from HOA boards and management companies. Proposed reforms include requiring licensing for management companies, setting minimum sales bids for foreclosed homes to protect homeowners‘ equity, and lowering the threshold for changing association policy through homeowner votes. These reforms aim to address issues such as equity theft, excessive fees, and lack of oversight in the HOA industry.
Despite the challenges and frustrations associated with HOAs, some residents are taking matters into their own hands to bring about change. In communities like Todd Creek Farms and Cornerstone Condominiums, residents have formed new boards, taken legal action against previous boards, and advocated for legislative reforms to improve the governance of their HOAs. These efforts have led to increased transparency, better communication, and a sense of community empowerment among residents.
Overall, the debate around HOAs in Colorado reflects a broader conversation about housing affordability, accountability, and governance in the state. As more residents and lawmakers push for reforms, the future of HOAs in Colorado may see significant changes aimed at protecting homeowners‘ rights, promoting transparency, and ensuring that communities are well-managed and financially sustainable.