Tuesday, January 12, 2016

Denver Post Article Again in Error on Construction Defects Issues

"Climate for construction-defects reform in Colorado much changed", Jan 12, 2016
They simply refuse to get input from any HOA home owner's organization

The Denver Post again allows those making millions from HOA Construction Defects (CD) litigation to represent the voice and rights of home owners and distort the debate in CD legislative reform. No input from any recognized HOA home owner’s organizations. Their point person again on home owner’s rights is isolated to none other than the Community Association Institute (CAI). The CAI represents the interests of property managers and HOA lawyers, NOT HOME OWNERS.  If CD legislation is ever be explained in a truthful, balanced, and productive manner it must first get by the CAI smoke screen that is all too pervasive in this issue.  

First, almost all HOAs created in the past 15 years mandate in their Declaration that arbitration vs our court system be used in CD dispute resolution. Of the 8,500+ HOAs in the State most are beyond the statute of limitations to sue over CD. As a percentage or relative number of all HOAs, those that changed their Declaration (at the encouragement of HOA lawyers) is very, very small. Thus precluding HOAs from changing their declaration and infringing upon homeowner’s rights is a weak argument. Furthermore, a recent Colorado court case has ruled HOAs can be prevented from changing their Declaration. The CAI would have the public believe the inability to change the Declaration will have a profound impact on home owner’s rights but the reality is that it would mostly impact the ability of HOA lawyers to promote litigation in our costly court system.

The other issue involves requiring home owners to vote on the approval of the use of their own funds on CD litigation. Currently, any HOA Board at the encouragement of their attorney can spend unlimited HOA funds on litigation without the knowledge or approval of home owners. The CAI opposes this empowerment of home owners as it would effectively reduce litigation.

We at the Colorado HOA Form offer the following CD legislative proposal to mitigate litigation and empower home owners: "HOA home owners are required to be apprised of and vote on the use of HOA funds in all litigation". Why is this so difficult!

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