Chapter 4 - § 4.14 • CONDEMNATION

• Jurisdiction: Colorado

§ 4.14 • CONDEMNATION

When property in a common interest community is taken by eminent domain, consideration must be given to the unique aspects of ownership found in those communities. The CCIOA provides that when an individual unit — or part of a unit — is acquired by eminent domain and the owner of that unit is left with a remnant that may not practically or lawfully be used for any purpose allowed by the declaration, the award must compensate the owner for the unit and its allocated interests, regardless of whether any common elements are acquired.¹³⁸ On acquisition, unless the decree provides otherwise, the unit's allocated interests are automatically reallocated to the remaining units in proportion to their respective allocated interests before the taking, and any remnant of the unit remaining after part of it is taken is thereafter a common element.¹³⁹

Except as provided in the preceding paragraph, if part of a unit is acquired by eminent domain, the award must compensate the owner for the reduction in value of the unit and its interest in the common elements whether or not any common elements are acquired.¹⁴⁰ On acquisition, the unit's allocated interests are reduced in proportion to the reduction of the unit's size, or on any other basis specified in the declaration. The portion of allocated interests divested from the partially acquired unit is automatically reallocated to that unit and the remaining units in proportion to the respective interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced allocated interests unless the decree provides otherwise.¹⁴¹

Generally, if part of the common elements is acquired by eminent domain, that portion of any award attributable to the common elements must be paid to the association; however, any portion of an award attributable to acquisition of a limited common element is to be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition, unless the declaration provides otherwise.¹⁴²

Any reallocation of allocated interests must be confirmed by an amendment to the declaration prepared, executed, and recorded by the association.¹⁴³

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Notes:

^[138] C.R.S. § 38-33.3-107(1). A comment to the Uniform Act raises an interesting question: If a governmental body acquires a unit by eminent domain, may it also take that unit's allocated interests and assume membership in...