Highline Gardens

House Bill 100, the Colorado Property Owner's Bill of Rights

Jun 07, 2005

Rocky Mountain News
June 7, 2005

The 1.5 million Coloradans who live in neighborhoods governed by homeowners associations won the right Monday to fly American flags, to check their associations' books and to speak up and complain.

Gov. Bill Owens signed Senate Bill 100, the bill that protects homeowners from the sometimes heavy-handed practices of HOAs.

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"It's a beautiful day in the neighborhood," Senate sponsor Bob Hagedorn, D-Aurora, quipped. "This is a landmark day for property rights for the little guy and gal whose biggest investment is the house."

House sponsor Rep. Morgan Carroll, D-Aurora, praised the governor.

"This was a pretty courageous signing," she said. "He really did have to stand up against some serious special interests" who opposed the bill.

She was referring to 11th-hour opposition from home builders and resort managers, who worried that the bill would lead to more litigation.

"I could never get them to read the bill and tell me specifically what they were opposed to," Carroll said.

"I asked them, 'Do you want the right to have secret meetings? Do you want the right to have a conflict of interest?' They didn't answer me."

Owens had several concerns with the bill, but his assistants worked them out with the sponsors, so his signature wasn't a big surprise, Carroll said.

She noted that Owens on Monday vetoed two bills that favor individual property rights. "It would have looked bad if we would have vetoed all three property-rights measures."

HOAs have many of the powers of government - to foreclose and to impose liens and assessments - but few of the responsibilities of government, Carroll said.

Until the governor signed the bill, HOAs could call secret meetings, shield financial records from members, impose extra charges and keep secret what they do with the money.

"Transparency is really the key to good governing," Carroll said. "Some of these HOAs flat out barred constitutionally protected free-speech rights. We should never be forcing people to choose between property rights and speech rights."

Rudy Sisneros, who lives in the Weld County community of Frederick, spent $300 for an 18-foot flagpole only to find that his HOA prohibits him from flying the U.S. flag on it.

"I poured the concrete, put up a light, did everything right, and all I got was a $50 fine," he said.

Sisneros hopes the governor's signature will clear up the matter and he'll be able to fly it. "I'd fly it 24 hours a day every day if they let me," he said.

The free-speech rights addressed by SB 100 go into effect immediately, while other parts of the law go into effect Jan. 1.

Twenty years ago, people who had trouble with their HOAs easily could find another neighborhood that wasn't run that way, proponents of the bill say. But increasingly, it's hard to find a newer condominium or town house, or even a newer single-family home, that isn't run by an HOA.

Owens signed seven other bills Monday, including:

?• HB 1317, which provides a way to give taxpayers refunds for certain years during the period in which the Taxpayer's Bill of Rights reforms are in effect, if the voters approve the changes in November.

?• SB 31, which stiffens penalties for making false statements designed to affect an election.

HOA powers reined in

House Bill 100, the Colorado Property Owner's Bill of Rights, guarantees property owners several protections, including the rights to:

?• Display political yard signs, flags and military service flags, effective immediately.

?• Speak at homeowners association board meetings, effective immediately.

?• Inspect association financial records, effective Jan. 1.

?• Read bylaws and covenants before closing on a home, effective Jan. 1.

?• Xeriscape within guidelines of the association, effective Jan. 1.

Source: Bill Sponsors Sen. Bob Hagedorn, D-Aurora, And Rep. Morgan Carroll, D-Aurora.