Wednesday, May 7, 2014
CAI Chalks Up Wins in HOA Reform Off Wallets of Home Owners
The defeat of Colorado SB 14-220, Construction Defects, joins HB 14-1254, the HOA Transfer Fees Limitation Bill that morphed into a token and ineffective "Disclosure" Bill, delivers a double blow to HOA home owners. SB 14-220 would have saved home owners millions of dollars by moving litigation from the court room to out of binding arbitration and protected home owners from HOA lawyers raiding reserve funds with frivolous law suits and pursuing costly court cases without home owner approval. HB 14-1254 was addressing the $15 million a year in unjustified and non-contestable fees on HOA home sales. It was changed to a Bill to require that home owners be notified of the fee without any specific details on charges, the fee amount (ranging from $50- to $1,150) was left to be determined without question by the property management company and let stand the practice that if the fee wasn't paid the home couldn't be sold. Both Bills were heavily lobbied for change/defeat by the Community Association Institute (CAI) whose members and the legal industry stood to lose tens of millions of dollars in fees income off the backs of HOA home owners. The success of the CAI in stifling any meaningful HOA legislative reform and controlling information and votes in the legislature must change or home owners will lose.