Chapter 7 - § 7.2 • THE DECLARANT-APPOINTED BOARD

• Jurisdiction: Colorado

§ 7.2 • THE DECLARANT-APPOINTED BOARD

The declarant appoints the initial governing board. Under the CCIOA, board members appointed by the declarant must, in the performance of their duties, exercise the care required of fiduciaries of the unit owners.¹² The right to appoint or remove any board member during any period of declarant control is one of the "special declarant rights" set forth in the CCIOA.¹³ The period of declarant control is prescribed in the declaration,¹⁴ but terminates no later than the earlier of 60 days after conveyance of 75 percent of the units that may be created to unit owners other than a declarant, two years after the last conveyance of a unit by the declarant in the "ordinary course of business," or two years after any right to add new units was last exercised. The declarant may also voluntarily surrender the right to appoint and remove board members at any point, while retaining control over certain prescribed actions.¹⁵ Even during the period of declarant control, no later than 60 days after conveyance of 25 percent of the units that may be created to unit owners other than a declarant, at least one member, and not less than 25 percent of the members, of the board must be elected by unit owners other than the declarant. No later than 60 days after conveyance of 50 percent of the units that may be created to unit owners other than a declarant, no less than 33 and 1/3rd percent of the members of the board must be elected by unit owners other than the declarant.¹⁶

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Notes:

^[12] C.R.S. § 38-33.3-303(2)(a).

^[13] C.R.S. § 38-33.3-103(29).

^[14] C.R.S. § 38-33.3-303(5)(a)(I) (declaration, except in large planned community, may provide for period of declarant control of association during which declarant, or persons designated by declarant, may appoint and remove members of board).

^[15] C.R.S. § 38-33.3-303(5)(b)...