Chapter 5 - § 5.14 • EMINENT DOMAIN

• Jurisdiction: Colorado

§ 5.14 • EMINENT DOMAIN

The CCIOA sets out the rights of unit owners when a unit or part of a unit is taken by eminent domain. If a unit is taken by eminent domain — or if part of a unit is taken by eminent domain, leaving the unit owner with a remnant that may not practically or lawfully be used for any purpose permitted by the declaration — then the award must compensate the owner for the unit and for the interests allocated to that unit, regardless of whether common elements are acquired.²⁶¹ Unless otherwise provided in the decree, the unit's allocated interests must then be automatically reallocated to the remaining units in proportion to the respective allocated interests of those units before the taking, and any unit remnant remaining after part of it is taken becomes a common element.

If a part of a unit is taken without leaving the unit owner with a remnant that may not practically or lawfully be used, the award must compensate the unit owner for the reduction in value of the unit and for the unit's interest in the common elements, regardless of whether any common elements are acquired.²⁶² On acquisition, unless the decree otherwise provides, the unit's allocated interests are reduced in proportion to the reduction in the size of the unit, or on any other basis specified in the declaration, and the portion of allocated interests divested from the partially acquired unit is automatically reallocated to that unit and to the remaining units in proportion to the respective interests of those units before the taking, with the partially acquired unit participating on the basis of its reduced allocated interests.²⁶³

When a part of the common elements is acquired by eminent domain, the portion of the award attributable to those common elements must be paid to the association; however, unless the declaration provides otherwise, any portion of the award attributable to acquisition of a limited common element must be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition.²⁶⁴

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Notes:

^[261] C.R.S. § 38-33.3-107(1).

^[262] C.R.S. § 38-33.3-107(2).

^[263] C.R.S. § 38-33.3-107(2)(a) and (b). The statute provides an objective test by which to measure the portion of allocated interests that are to be reallocated and establishes a formula based on relative size. But the statute also allows the declaration to change that formula to some other more appropriate one, which...