Chapter 7 - § 7.3 • POWERS OF THE BOARD OF DIRECTORS

• Jurisdiction: Colorado

§ 7.3 • POWERS OF THE BOARD OF DIRECTORS

The governing board is the body designated to act on behalf of the association,¹⁷ and the association is granted specific powers by the CCIOA. Those powers are:

• Adopt and amend bylaws and rules and regulations.¹⁸
• Adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from unit owners.¹⁹
• Hire and terminate managing agents and other employees, agents, and independent contractors.²⁰
• Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more unit owners on matters affecting the common interest community.²¹
• Make contracts and incur liabilities.²²
• Regulate the use, maintenance, repair, replacement, and modification of common elements.²³
• Cause additional improvements to be made as a part of the common elements.²⁴
• Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property.²⁵
• Grant easements, leases, licenses, and concessions through or over the common elements.²⁶
• Impose and receive any payments, fees, or charges for the use, rental, or operation of the common elements other than limited common elements.²⁷
• Impose charges for late payment of assessments, recover reasonable attorney fees and other legal costs for collection of assessments and other actions to enforce the power of the association, regardless of whether suit was initiated, and, after notice and an opportunity to be heard, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations of the association.²⁸
• Impose reasonable charges for the preparation and recording of amendments to the declaration or statements of unpaid assessments.²⁹
• Provide for the indemnification of officers and directors and maintain directors and officers liability insurance.³⁰
• Assign the right to future income, including the right to receive common expense assessments, but only to the extent the declaration expressly so provides.³¹
• Exercise any other powers conferred by the declaration or bylaws.³²
• Exercise all other powers that may be exercised by legal entities of the same type.³³
• Exercise any other powers necessary and proper for the governance and operation of the association.³⁴

Several other powers and responsibilities are listed in other statutes. These include:

• Certain declarations with limited terms of years may be extended if the board adopts a resolution recommending extension for a specific term not to exceed 20 years and directs the question to be submitted to the unit owners.³⁵
• When there is an application to reallocate limited common elements, the application must include a deposit against attorney fees and costs the association will incur in reviewing and effectuating the application, in an amount reasonably estimated by the board.³⁶
• The board is charged with determining criteria for compliance with a CCIOA requirement that associations provide owners with free education at least annually about the association's general operations and the rights and responsibilities of owners, the association, and the board under Colorado law.³⁷
• If unit owners wish to relocate boundaries between adjoining units, they must submit an application to the board. The application must include: (1) evidence sufficient to the board that the applicant has complied with all local rules and ordinances, along with evidence that the proposed relocation of boundaries does not violate the terms of any document evidencing a security interest; (2) any proposed reallocation of interests; (3) the proposed form for amendments to the declaration that may be necessary to show the altered boundaries between adjoining units, and their dimensions and identifying numbers; (4) a deposit against attorney fees and costs that the association will incur in reviewing and effectuating the application, in an amount reasonably estimated by the executive board; and (5) any other information that the board reasonably requests.³⁸
• A unit owner who wants to subdivide a unit must submit an application to the board that includes: (1) evidence that the applicant of the proposed subdivision has complied with all building codes, fire codes, zoning codes, planned unit development requirements, master plans, and other applicable ordinances or resolutions adopted and enforced by the local governing

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