HB 18-1342

House Bill 18-1342, which has been signed into law, allows homeowners in older Colorado neighborhoods with Homeowners' Associations (HOAs) that were established before July 1, 1992, to vote on and potentially reject the HOA's budget proposal. This means that a majority of unit owners can now decide whether to approve or veto the budget set by their HOA’s executive board. However, this rule doesn't apply if the original HOA documents already limit how much the annual budget can increase. The bill impacts older HOAs and gives more power to homeowners in these communities to have a say over financial decisions made by their HOA boards.

Official Summary

Common interest communities created before the July 1, 1992, enactment of the 'Colorado Common Interest Ownership Act' (Act) are exempt from many of the Act's provisions, including a provision allowing a majority of the unit owners in a common interest community to veto a budget proposed by the common interest community's executive board. The bill requires a common interest community that predates the Act to allow its unit owners to veto, by majority vote, a budget proposed by the common interest community's executive board; except that the bill does not apply to a common interest community that predates the Act if the common interest community's declaration sets a maximum assessment amount or provides a limit on the amount that the common interest community's annual budget may be increased. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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