If there are multiple violations of different covenants or rules, the association can fine up to a total of $500.00 for each violation. It is important to note that an association’s may only issues fines totaling $500.00 for any specific violation. If the owner again fails to cure the violation the association can issue a second fine, and at this point may turn the file over to the association’s legal counsel for legal action. The Association would then send a second 30-day violation letter out to the owner again informing the owner they have 30 days to cure the violation and informing the owner they may be fined if they do not cure the violation within the given 30 days as well as again offering notice and opportunity for a hearing regarding the violation. If an owner fails to cure the violation within 30 days, the association after inspection can levy the first fine. This courtesy letter need not be sent by certified mail). (Some associations are providing a 10 or 15 day courtesy letter prior to the first 30 day letter in an attempt to gain compliance prior to the threat of fine. First, when an association determines that a violation has taken place the association will send a violation letter via certified mail in a form compliant with HB-1137 providing the unit owner 30 days to cure the violation and informing the owner they may be fined if they do not cure the violation within the 30 days as well as offering notice and opportunity for a hearing regarding the violation. If the violation is not a health and safety violation, but rather a regular covenant violation, these violations are treated in a different manner. Additionally, since the violation involves health and safety, the Association should refer this issue to the attorney as soon as possible for legal recourse. There is no limit on the amount of fines which can be levied for a health and safety violation, however fines may only accrue every other day. If the owner fails to cure the violation, the association may levy fines on the owner in addition to taking legal action regarding the violation. We would recommend such notice be mailed and posted (with a time stamped picture of the posting) on the unit. Once the association has determined that a health and safety violation exists, the association must provide written notice which complies with HB-1137 to the owner informing the owner of the violation and providing 72 hours for the owner to cure the violation. However, it is our belief that these violations would include: a dog that bites another dog or person, but not a dog that growls or merely acts in an aggressive manner or it might include failure of an owner to allow access to their unit for maintenance of an association fire suppression system, but not to an owner who installs hardwood floors without approval. Unfortunately, the legislature did not provide us with any examples of violations that might threaten public safety or health. The first class of covenant violations are those violations which the Association reasonably determines threaten public safety or health. HB-1137 has created two different classes of violations, as well as different rules and standards for those classes. Since we have covered the old, it is now time for the new. Additionally, just like in years past, before a fine can be issued an owner must be provided notice and opportunity for a hearing in front of an impartial decision maker as defined in CCIOA at C.R.S. The association’s policy will have to comply with the provisions of HB-1137, so if your association has not adopted an updated enforcement policy, it needs to adopt one in addition to a new collection policy and conduct of meetings policy as soon as possible. First, all associations still need to have a covenant enforcement policy. While many can argue about the merit and/or need for those changes, the fact is the law has changed and associations need to comply with the new law. HB-1137 amended the Colorado Common Interest Ownership Act (“CCIOA”) and is probably the biggest shift in covenant enforcement that has occurred in the last 10 years. Does the Association want to continue to prohibit sheds, is there a new color pallet that the Association would like to adopt? This winter is the perfect time to review your governing documents for covenant and rule concerns as the legislature has made some key changes to covenant enforcement with the passage of HB-1137. Specifically, you want to make sure that your governing documents match up to how the Board and the community see the Association moving into the future. Winter is a great time to review your association’s governing documents including your declaration and rules and regulations to ensure your association is moving forward in a positive direction.
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