Chapter 5 - § 5.3 • RIGHTS OF UNIT OWNERS GENERALLY

• Jurisdiction: Colorado

§ 5.3 • RIGHTS OF UNIT OWNERS GENERALLY

Under the CCIOA, the status of "unit owner" carries with it many rights with respect to the association — and sometimes the declarant²⁵ or other owners — that governs the community.²⁶ For example, a unit owner is generally entitled to notice of matters affecting the common interest community.²⁷ A unit owner has the right to be free of certain restrictions on patriotic and political expression,²⁸ vehicle parking,²⁹ fire prevention strategies,³⁰ renewable energy generation devices,³¹ modifications necessary for persons with disabilities,³² and energy efficiency measures;³³ restrictions on deed, covenant, or other document provisions that set forth a permissible sale price or rental rate or promote affordable housing;³⁴ and restrictions on use of xeriscape or drought-tolerant vegetative landscapes³⁵ or use of a rain barrel to collect precipitation from a residential rooftop;³⁶ and to be protected from unconscionable agreements or contract terms.³⁷ When a unit owner is required to obtain permission for architectural or landscaping changes, as is often the case, he or she is entitled to have the decision on any application made in accordance with standards and procedures set forth in the declaration or in duly adopted rules and regulations or bylaws of the association, and he or she also has the right for the decision not be arbitrary or capricious.³⁸

The CCIOA also relieves unit owners of expenses connected to real estate in the community that is subject to development rights,³⁹ meaning generally the right to add real estate, create units or common elements or limited common elements, subdivide or convert units into common elements, or withdraw real estate from a common interest community.⁴⁰ Unit owners are not liable for any action based on a declarant's acts or omissions connected to any part of the community that the declarant had a responsibility to maintain, and unit owners are not to be joined personally as defendants in any action alleging an act or omission by the association.⁴¹

Any surplus funds — those funds remaining after payment of, or provision for, common expenses and any prepayment of, or provision for, reserves — must either be paid to unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.⁴²

Unit owners also have benefit of the obligation of good faith imposed on every contract or duty governed by the CCIOA⁴³ and of the duty under the Act of "responsible governance."⁴⁴ They have the right to a proper allocation of "allocated interests,"⁴⁵ generally defined as the undivided interest in the common elements, the common expense liability, and votes in the association.⁴⁶ Unit owners — meaning unit owners other than the declarant — are also entitled to have delivered to the association all property that belongs to them that is held or controlled by the declarant, within 60 days after they have elected a majority of the governing board.⁴⁷

The CCIOA also provides an "owner education right" not found in the Uniform Act. The CCIOA says that the association must provide education to owners addressing the general operations of the association and the rights and responsibilities of owners, the association, and the governing board — generally the unit owner-elected board of directors — under Colorado law. This education must be provided at no cost on at least an annual basis. But the CCIOA allows the governing board to determine the criteria for compliance with the education requirement.⁴⁸

There are many other more specific and extensive rights of unit owners that are explained in more detail in the sections below.

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Notes:

^[25] Note Snowmass Land Co. v. Two Creeks Homeowner's Ass'n, 159 P.3d 662 (Colo. App. 2006) (fundamental objective of CCIOA is to provide full disclosure to purchasers regarding applicable development rights).

^[26] See C.R.S. § 38-33.3-302 (powers of unit...