| Summary |
Current law exempts certain small cooperatives and
limited-expense planned communities from most of the requirements of
the Colorado Common Interest Ownership Act, which governs the
conduct of homeowners' associations (associations). A cooperative or
planned community may avail itself of the exemption if:
•
A cooperative was created on or after July 1, 1992, but
before July 1, 1998, and either contains only units restricted
to nonresidential use or contains no more than 10 units and
is not subject to any development rights;
•
A planned community was created on or after July 1, 1992,
but before July 1, 1998, and contains no more than 10 units
and is not subject to any development rights, or if a planned
community provides in its declaration that the annual
average common expense liability of each unit restricted to
residential purposes may not exceed $400, as adjusted for
changes in the consumer price index (CPI);
•
A cooperative or planned community was created on or
after July 1, 1998, and contains only units restricted to
nonresidential use or contains no more than 20 units and is
not subject to any development rights; or
•
A planned community was created after July 1, 1998, and
provides in its declaration that the annual average common
expense liability of each unit restricted to residential
purposes may not exceed $400, as adjusted for changes in
the CPI.
The bill combines these exemptions, with amendments, to state
that a cooperative or planned community may avail itself of the
exemption if:
•
A cooperative or planned community was created on or
after July 1, 1992, and either contains only units restricted
to nonresidential use or contains no more than 20 units and
is not subject to any development rights; or
•
A planned community provides in its declaration that the
annual average common expense liability of each unit
restricted to residential purposes must not exceed $400, as
adjusted annually since July 1, 1999, for changes in the
CPI.
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