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Colorado HOA issue: we live at Arrowhead in Gunnison County,

 
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Customer Question

Colorado HOA issue: we live at Arrowhead in Gunnison County, half way between Montrose and Gunnison, and have a Board of Directors who are unwilling to allow homeowners to see detailed Income and Expense Summeries. how can we get these reports. We pay HOA dues and want to know in detail where the money is going.

thank you

 

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State/Country relating to question: Colorado

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residents have tried to talk to board members but are being ignored. the board refuses to hear anyones concern, especially when they have told us they have no money. every year we have a trash container brought up (cost $1000 per container) at least 3 times a year so that residents can through out stuff that we can not put into our household garbage container. this trash container allows those who have accumulated junk to be thrown out to get ride of stuff in a secure way. again, thank you

Submitted: 290 days and 18 hours ago.
Category: Real Estate Law
Value: $25
Status: CLOSED

Accepted Answer

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Expert:  Lucy, Esq. replied 290 days and 18 hours ago.

Hi,

My name is XXXXX XXXXX X'd be happy to answer your questions today. We have recently implemented a new payment and feedback system. Please be aware that you are rating my courtesy and service as a professional, and not whether the answer supports your legal position. If you have any questions at all, or there is anything I can clarify for you, please bypass the rating system and click “Continue the Conversation” or "Reply". Choosing either of the lowest two options reflects poorly on me (and not the law), so please reply to me if there is anything I can do to help before choosing those options. I appreciate your patience while we work out the kinks.

Colorado Stat., Section 38-33.3-317 requires a HOA to keep records of income and expenses, and to make those records "reasonably available for examination and copying by any unit owner and such owner's authorized agents." The statute also defines "reasonably available," so that's not within the board's discretion. The board must allow you to view the records "during normal business hours, upon notice of five business days, or at the next regularly scheduled meeting if such meeting occurs within thirty days after the request".

The first step in this situation is usually to send a letter to the board, explaining the requirements of the statute and demanding that they either allow you to examine the records at the next business meeting (if it's coming up), or send you copies of the records within 5 business days. They can charge you for the copies. If you send the letter via certified mail, you'll know exactly when they received it, which can help. You may also want to see if any of the other owners will support you buy signing the letter (it sounds as if some of them will). If necessary, you can file suit against the board for violation of their fiduciary duty to the community, and state law. The statute also allows you to recover reasonable attorneys fees from the board, and they cannot levy an assessment against those of you who brought the suit to pay those fees. 38-33.3-123.

Good luck.

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Customer replied 290 days and 17 hours ago.

thank you so very much...i will get this info out to our members.

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Expert:  Lucy, Esq. replied 290 days and 17 hours ago.

You're welcome, and thank you.

I'm sorry - I actually thought I included a link to the statute, but it looks like it didn't go through. Here's the full text.
http://www.cohoalaw.com/CCIOA%20-%202006%20annotated.pdf

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Customer replied 288 days and 10 hours ago.




Apparently we have no authority or right to find out about salaries...1/2 of our HOA dues is going to salaries and they are refusing to answer our questions as to who gets what....HELP!! one person is saying "i need a new attorney, and that you are totally wrong" again, HELP alot of owners are worried about where the money is going.


 


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State/Country relating to question: Colorado

Already Tried:
prior question regarding HOA owners rights to have access to expenses and the statue that concerns this issue....we need to know where our money is going and have 1/2 go to salaries when in the past most committies (?sp) were volunteer. Please Help!! we have 800 lots with owners that live all over the US and I am trying to give them info. thanks, XXXXX XXXXX




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Expert:  Lucy, Esq. replied 288 days and 10 hours ago.

The statute says:

(2) (a) Except as otherwise provided in paragraph (b) of this subsection (2), all financial and other records shall be made reasonably available for examination and copying by any unit owner and such owner's authorized agents.

(b) (I) Notwithstanding paragraph (a) of this subsection (2), a membership list or any part thereof may not be obtained or used by any person for any purpose unrelated to a unit owner's interest as a unit owner without consent of the executive board.


Colorado Stat., Section 38-33.3-317. So, it says that "all financial and other records" must be available to the unit owners, except the ones listed in part B, which only exempts a membership list. There is no basis for claiming that the Association members are not entitled to salary information. That just makes me worried that the board is paying themselves huge salaries that may not be authorized. If they refuse to produce the records, the association members can bring an action for (a) an accounting, to get the records, but also (b) breach of fiduciary duty, because it doesn't sound like the board members are acting in the best interests of the entire community and, quite possibly, (c) waste, which is dissipating the community's assets.

You may want to call a local attorney tomorrow. Again, if your suit is successful, the board members who are doing the wrongful acts will have to pay for the attorneys fees.

Customer replied 287 days and 18 hours ago.

I just received feed back from an individual who states that Colorado House Bill 12-1237 states that the HOA board does not have to give informaion on Salaries..we, the membership need to know so that we can determine where our monies are going...in the past, so much was done by volunteers..now we just want to know what areas are no longer volunteer and maybe we do not need these services and maybe the Board needs to do them is they are receiving monies.


 


again, thanks for you prompt answers.

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Expert:  Lucy, Esq. replied 286 days and 21 hours ago.

I'm sorry. I'm actually out of town for the weekend. If you can wait until Sunday, I can look into it. If you can't wait, I understand.

Customer replied 286 days and 20 hours ago.

No Problem--thanks

Accepted Answer

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Expert:  Lucy, Esq. replied 284 days and 18 hours ago.

Thank you - that bill isn't in the current version of the statute, because it just was passed on May 29, 2012. In most states, a bill that is signed into law doesn't become effective immediately unless the bill says otherwise. It's odd that Colorado would both have a contrary rule and not keep their online statutes up to date.

If there is any evidence that the board is breaching their fiduciary obligation to the board by doing kickbacks, paying inflated salaries, or things like that, the members of the community can still file suit against them for that breach. They could them ask the association to provide the documents under seal to the judge, who would review them personally and decide what, if any, information should be provided. Also, the bill prohibits only salary information related to specific individuals. A list of salaries that showed amounts paid and blacked out the amounts each person was earning, and job title, might still give you quite a bit of the information you want, and it wouldn't violate the statute. You can ask for that.

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