We have received several emails that have asked why we haven't been
excited about HB 16-1217 (see below).
The presentation of this Bill is that it will change things for home
owners; it will implement the significant components of the State HOA Study
2013; and it will improve upon home owner's rights and an ability to resolve
HOA disputes out of court.
Unfortunately, none of this is fact and HB 16-1217 is more "feel
good" legislation than impacting.
You make the call. We would like
to be more optimistic about HOA legislation this session but the only proposed
Bill 16-1133 (simply requiring a receipt for fees assessed home owners) was
vetoed. If you think we are wrong let us
know but we get exhausted with HOA Bills that are proposed with no means of
enforcement.
1. This Bill will use a
different methodology to compute HOA registration fees: a per unit fee. Fine but no particular impact on home owners
and the current law appears to authorize this.
2. Develop, maintain, and
publish a statewide election monitoring referral list consisting of independent
contractors who can monitor HOA elections.
First, how will "independence" be determined and who will
select the contractor: home owner or HOA Board?
Who are these folks and what qualifies them to monitor HOA
elections? There is no background check
on the integrity or experience of these contractors? There is no certification of contractors as
to their HOA educational requirements and HOA law? The bigger question is who will pay for these
contractors and what is the process to get these folks involved in an HOA
election? Who puts the money upfront to
pay for these contractors? The cost of
these contractors will most certainly be several thousand dollars to do a
thorough job with any report of the election and recommendation for changes
mostly unenforceable. Election
irregularities will require the home owner to go to court to get enforced (same
as now!). What happens when the HOA
refuses to allow these folks in to oversee an election? These contractors may
monitor an election but what authority do they have to demand election
procedure changes or when improprieties occur what enforcement authority do
they have to demand election results be invalidated and another election occur:
back to court? Thus it appears we will
have a list of costly and unvetted election officials that can have little to
no experience in HOA matters, have no formal HOA education, have no enforcement
authority, will keep HOA disputes in court, will cost home owners, and finally,
get this, the law specifically states DORA will place a disclaimer on their
site that they do not endorse anyone on the list.
3. Require the officer to
develop, maintain, and publish a statewide referral list containing the names
and contact information for independent contractors who provide mediation or
arbitration services on HOA matters.
First, mediation costs and adds time and process to dispute resolution
with NO guarantee of a decision and/or a decision that is enforceable. Licensing HOAs will bring an out of court
binding dispute resolution process that is affordable and accessible and we are
working on this, not mediation that has failed home owners for decades. Next, anyone, you, me, the Orkin bug man, can
be a mediator: there are no professional mediator standards set by any
licensing Board. The folks on this list
will not be required to have any confirmed formal HOA law and/or HOA coursework
or history of HOA mediation. The people
on this list will not be vetted except for what they place on a resume. The list will not provide the cost to the
home owner. If you currently want a
mediator you can Google "HOA mediator" and your list will be as
vetted as the DORA list. DORA will
disclaim endorsement of any mediator.
The list will not include any information as to what a mediator can
accomplish, what is enforceable, indicate that the parties can walk away from
an agreement at any time without prejudice (see CCIOA), discuss that the HOA need
not attend the session or can walk out of the session at any time leaving the
tab to the home owner, etc. Thus we get
a list of unvetted, unlicensed, no guarantee of knowledge of HOA law mediators
for you to pay with you hard earned money.
This is the situation today.
