Court of appeals rules that HOA lien is not spurious, despite claim that annexation was invalid

Today, the Colorado Court of Appeals reversed a order that had deemed a homeowner association’s lien to be spurious.

The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999. Several years later, the developer repurchased the property through a foreclosure sale. Despite its prior approval of the annexation, the developer refused to pay community maintenance assessments, which prompted the association to record a lien under its covenants and a statutory provision of the Colorado Common Interest Ownership Act (CCIOA).

The parties remained in a standoff until 2016, when the Colorado Supreme Court announced two decisions that adopted a stricter standard for annexing property into communities subject to CCIOA.

Big news from The Witt Law Firm

2018 was a great year for The Witt Law Firm, and 2019 is bringing big changes.

I am excited to announce that I have decided to accept an Of Counsel position with Frascona, Joiner, Goodman and Greenstein. Founded in 1974, the firm has grown to become Colorado's preeminent real estate and business law firm, and its outstanding team of lawyers and paralegals will be an excellent complement to my construction law and litigation practice.

To all my clients and colleagues, I wish you the happiest of holidays. I look forward to working with you in the new year at the new firm!

-Jesse

Colorado's new construction defect law takes effect in September: What you need to know.

 Colorado’s new construction defect law officially takes effect this month. Although HB 17-1279 was passed in May, the statutory text provides that it only applies “with respect to events and circumstances occurring on or after September 1, 2017.” With that date now upon us, practitioners should be mindful of the law’s new requirements.

The law applies to any lawsuit wherein a homeowner association files a construction defect action on behalf of two or more of its members. “Construction defect action” is defined broadly to include any claims against construction professionals relating to deficiencies in design or construction of real property. Before an association may commence such an action, its board must follow several steps.

Colorado Supreme Court rules that developers can retain perpetual control over HOA covenants

The Colorado Supreme Court ruled today that developers can retain control over community covenants in perpetuity by recording a covenant that requires declarant consent to any amendments. Although the Colorado Common Interest Ownership Act (CCIOA) states that such controls should be void, the court nevertheless ruled that a declarant may veto amendments that alter the dispute resolution procedures for construction defect actions at any time.

The case of Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., 395 P.3d 788, 2017 CO 69, arose when the community’s members discovered widespread construction defects.