I can’t even begin to tell you just how appalled, angry, disgusted and frustrated I am at the state of housing, American style. Most countries in the world have a healthier respect for private spaces, whether those spaces are owned by the residents or leased. But with the proliferation of mandatory, forced membership in residential corporations, Americans are subject to the whims and caprices of neighborhood self appointed “enforcers” and their hired ” professionals” aka, HOA attorneys. After all, they really are not smart enough or capable enough to live in their own homes without a lot of oversight.
John Cowherd and Bill Davis join us On The Commons in the first of a two part show analyzing how and why we got to having such disrespect and disdain for private property. The largest tools in these tyrants’ toolbox is the statutory right to fine and then to foreclose to collect these fines. No oversight is provided by the governmental bodies authorizing these remedies, no thought to protecting the rights of the owners. After all, they agreed, right?
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“The largest tools in these tyrants’ toolbox is the statutory right to fine and then to foreclose to collect these fines. No oversight is provided by the governmental bodies authorizing these remedies, no thought to protecting the rights of the owners.”
Here in Colorado, our legislators not only allow but encourage H.O.A. corporations to assess fines against homeowners; see CO HB 91-1292 / C.R.S. § 38-33.3-101 et seq. / the so-called “Colorado Common Interest Ownership Act” (C.C.I.O.A.).
I’m sure it’s just a coincidence that (then) State Representative Mike Coffman (Republican) owned a property management company at time he was also a Prime Sponsor of the legislation 28 years ago.
The Colorado State legislature declared that it is in the interest of the State to increase the power of H.O.A. corporations to collect fines:
C.R.S. § 38-33.3-102. Legislative declaration. (1) The general assembly hereby finds, determines, and declares, as follows:
(a) That it is in the best interests of the state and its citizens to establish a clear, comprehensive, and uniform framework for the creation and operation of common interest communities;
(b) That the continuation of the economic prosperity of Colorado is dependent upon the strengthening of homeowner associations in common interest communities financially through the setting of budget guidelines, the creation of statutory assessment liens, the granting of six months’ lien priority, the facilitation of borrowing, and more certain powers in the association to sue on behalf of the owners and through enhancing the financial stability of associations by increasing the association’s powers to collect delinquent assessments, late charges, fines, and enforcement costs;
The Colorado State legislature declared that H.O.A. corporations shall have the power to assess and collect fines, “without specific authorization in the declaration”:
C.R.S. § 38-33.3-302. Powers of unit owners’ association. (1) Except as provided in subsections (2) and (3) of this section, and subject to the provisions of the declaration, the association, without specific authorization in the declaration, may:
(k) (I) Impose charges for late payment of assessments, recover reasonable attorney fees and other legal costs for collection of assessments and other actions to enforce the power of the association, regardless of whether or not suit was initiated, and, after notice and an opportunity to be heard, levy reasonable fines for violations of the declaration, bylaws, and rules and regulations of the association.
The Colorado State legislature declared that H.O.A. fines are “enforceable as assessments” (the “priority of payments” or “application of payments” accounting scam):
C.R.S. § 38-33.3-316. Lien for assessments. (1) The association, if such association is incorporated or organized as a limited liability company, has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner. Unless the declaration otherwise provides, fees, charges, late charges, attorney fees, fines, and interest charged pursuant to section 38-33.3-302 (1)(j), (1)(k), and (1)(l), section 38-33.3-313 (6), and section 38-33.3-315 (2) are enforceable as assessments under this article. The amount of the lien shall include all those items set forth in this section from the time such items become due. If an assessment is payable in installments, each installment is a lien from the time it becomes due, including the due date set by any valid association’s acceleration of installment obligations.