Chapter 9 - § 9.5 • COMMON-INTEREST COMMUNITIES
| Jurisdiction | Colorado |
The Colorado Common Interest Ownership Act (CCIOA)69 became effective July 1, 1992. Except for small cooperatives and small and limited expense planned communities,70 CCIOA applies to all common-interest communities created in Colorado on or after July 1, 1992. The provisions of the Condominium Ownership Act other than those relating to time shares and condominium conversions do not apply to common-interest communities created on or after July 1, 1992.71 Except for small preexisting cooperatives and planned communities,72 certain provisions of CCIOA apply to all common-interest communities created before July 1, 1992 with respect to events and circumstances occurring on or after July 1, 1992.73 Similarly, except for small cooperatives and small and limited expense planned communities:74 (1) certain provisions of CCIOA apply to all common-interest communities created before July 1, 1992, with respect to events and circumstances occurring on or after January 1, 2006;75 and (2) certain provisions of CCIOA apply to all common-interest communities created before July 1, 1992 with respect to events and circumstances occurring on or after July 1, 2010.76 An organization created prior to July 1, 1992 may elect to have the common-interest community treated as if it were created after June 30, 1992 and thereby subject the common-interest community to all of the provisions of CCIOA.77
CCIOA does not apply to a planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that CCIOA does apply. CCIOA applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted, only if the declaration so provides or the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.78
CCIOA does not apply to common-interest communities or units located outside Colorado.79
For the regulation of persons who manage the affairs of common interest communities under CCIOA, see [2013] Colo. Sess. Laws, H.B. 1277, ch. 352.
§ 9.5.1—Nature and Creation of Common-Interest Community
A "common-interest community" is real estate described in a declaration with respect to which a person, by virtue of such person's ownership of a unit, is obligated to pay for real estate taxes, insurance premiums, maintenance, or improvement of other real estate described in a declaration. Ownership of a unit does not include holding a leasehold interest in a unit of less than 40 years, including renewal options. The period of the leasehold interest, including renewal options, is measured from the date the initial term commences.80 Real estate with respect to which each homeowner is obligated to pay to the homeowners' association fees that are used for maintenance of certain common elements is a "common-interest community."81 It is not necessary, however, that a common interest community have any common elements.82
A "condominium" is a common-interest community in which portions of the real estate are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate ownership portions. A common-interest community is not a condominium unless the undivided interests in the common elements are vested in the unit owners.83
A "cooperative" is a common-interest community in which the real property is owned by an association, each member of which is entitled by virtue of such member's ownership interest in the association to exclusive possession of a unit.84
A "leasehold common interest community" is a common-interest community in which all or a portion of the real estate is subject to a lease, the expiration or termination of which will terminate the common-interest community or reduce its size.85
A "phased community" is a common interest community in which the declarant retains development rights.86
A "planned community" is a common-interest community that is not a condominium or cooperative. A condominium or cooperative may be part of a planned community.87 A "large planned community" is a planned community that meets the criteria set forth in C.R.S. § 38-33.3-116.3(1).88 A large planned community is exempt from a number of the provisions of the Colorado Common Interest Ownership Act.89
A common-interest community may be created by recording a declaration executed in the same manner as a deed90 and, in the case of a cooperative, by conveying the real estate subject to the declaration to the association. The declaration must be recorded in every county in which any portion of the common-interest community is located, and must be indexed in the grantee's index in the name of the common-interest community and in the name of the association and in the grantor's index in the name of each person executing the declaration. No common-interest community is created until the plat or map for the common-interest community is recorded.91 A declaration may create a common-interest community by implication.92 In a common-interest community with horizontal unit boundaries, a declaration or an amendment to a declaration creating or adding units must include a certificate of completion executed by an independent licensed or registered engineer, surveyor, or architect stating that all structural components of all buildings containing or comprising any units thereby created are substantially completed.93
§ 9.5.2—Common-Interest Community Declaration
A declaration is any recorded document that creates a common-interest community.94 The declaration must contain:
• The names of the common-interest community and the association and a statement that the common-interest community is a condominium, cooperative, or planned community;95
• The name of every county in which any part of the common-interest community is situated;96
• A legally sufficient description of the real estate included in the common-interest community;97
• A statement of the maximum number of units that the declarant reserves the right to create;98
• In a condominium or planned community, a description, which may be by plat or map, of the boundaries of each unit created by the declaration, including the unit's identifying number; or, in a cooperative, a description, which may be by plat or map, of each unit created by the declaration, including the unit's identifying number, its size or number of rooms, and its location within a building if it is within a building containing more than one unit;99
• A description of any limited common elements (with certain exceptions) and, in a planned community, any real estate that is or must become common elements;100
• A description of any real estate, except real estate subject to development rights, that may be allocated subsequently as limited common elements (with certain exceptions), together with a statement that they may be so allocated;101
• Certain provisions regarding development rights;102
• An allocation to each unit of the allocated interests;103
• Any restrictions on the use, occupancy, and alienation of the units and on the amount for which a unit may be sold or on the amount that may be received by a unit owner on sale, condemnation, or casualty loss to the unit or to the common-interest community, or on termination of the common-interest community;104
• The recording data for easement and licenses appurtenant to, or included in, the common-interest community or to which any portion of the common-interest community is or may become subject by virtue of a reservation in the declaration;105
• Certain other matters required by CCIOA,106 including provisions regarding certificates of completion,107 leasehold common-interest communities,108 allocation of allocated interests,109 limited common elements,110 plats and maps,111 sales office, management offices, and models,112 easement rights,113 and budget approval;114 and
• Reasonable provisions concerning the manner in which notice of matters affecting the common-interest community may be given to unit owners by the association or other unit owners.115
If the common-interest community is a large planned community, certain additional matters must be included in the declaration.116 The declaration may contain any other matters the declarant considers appropriate.117
The declaration may, with certain exceptions, require that all or a specified number or percentage of lenders who hold security interests encumbering the units approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions.118
The plats and maps mentioned in C.R.S. § 38-33.3-209 are part of the declaration119 and may contain certain information required to be included in the declaration.120 For amendment of the declaration, see C.R.S. § 38-33.3-217. A provision requiring the declarant's written consent to amend the declaration relative to dispute resolution procedures for construction defect claims does not violate C.R.S. § 38-33.3-217(1)(a)(I).121 For amendment of pre-existing (i.e., pre-July 1, 1992) governing documents, see C.R.S. § 38-33.3-120 and C.R.S. § 38-33.3-217(7)(f). Where the association is a nonprofit corporation, the Colorado Revised Nonprofit Corporation Act establishes the time limit for amending its declaration based on action taken without a meeting.122
For the powers of the unit owners' association, see C.R.S. § 38-33.3-302. The power to engage in litigation includes arbitration.123 C.R.S. § 38-33.3-302(2) does not invalidate mandatory arbitration because the dispute resolution procedures apply to parties other than the declarant. Furthermore, CCPA claims may be subject to mandatory arbitration because the Colorado Consumer Protection Act does not include a nonwaiver provision.124
§ 9.5.3—Plats and Maps
A plat or map is...
To continue reading
Request your trial