|
Committee agrees: HOAs need reining inBut ombudsman for homeowners bill put on holdDebi Brazzale, Colorado News AgencyThursday, February 25, 2010 | |
A legislative committee agreed yesterday that homeowners associations need reining in, but the lawmakers wouldn’t OK a plan to create a state ombudsman’s office for homeowners until revisions are made to the proposal. That was after the panel heard from homeowners complaining about overreaching associations in what one witness called the “wild, wild, west of HOA land.”
“Nobody disputes that there are issues with HOAs,” said Rep. Joe Rice, D-Littleton, who heads the Business Affairs and Labor Committee that heard the measure, House Bill 1278.
Rice, along with both Republican and Democratic committee members, liked the concept of homeowners being afforded the services that an ombudsman could provide, but they said they could not support the bill in its current form because of issues raised by state regulators, who would oversee ombudsman, and others who came to speak to the panel.
Division of Real Estate chief Erin Toll said the bill as is won’t work because there is not written into law a standard of conduct for homeowners’ associations that would guide and direct the ombudsman.
“I already know what the complaints are, we hear them everyday,” said Toll. “There needs to be clear standards of conduct about what HOAs can and can’t do along with clear sanctions if they don’t follow those standards of conduct.”
Yet, some were skeptical that an ombudsman is even the right approach to the concerns of homeowners, questioning the creation of another layer of bureaucracy in what some homeowners say is already a labyrinth of bureaucratic red-tape when HOAs and their attorneys are at odds with individual homeowners. Rep. Amy Stephens, R-Monument was among the skeptics.
“I’m not sure this is the right vehicle to get to where we want to be,” said Stephens.
Another concern raised and echoed in testimony was that the bill’s provision for two full-time employees to manage the office isn’t nearly enough.
“We want to be realistic about the expectations about this office of ombudsman,” said Amy Redfern, speaking for the Community Association Institute, which provides educational services to HOAs. Redfern said that they would like to see the bill revisited after more discussions with groups like theirs.
The bill is sponsored by two Democratic lawmakers from Aurora, Rep. Sue Ryden in the House and Sen. Morgan Carroll in the Senate. Carroll has been at the forefront of HOA legislation in previous years, and she and Ryden will sit down with the stakeholders to fine-tune the bill before bringing it back to committee. The next hearing on the bill has been scheduled for March 2.
| Comments: |
| dianna @ 2010-02-25 14:05:12 | Can you be more specific on what the HOA concerns are please? |
| Flag this comment as Inappropriate / Spam |
| Julie @ 2010-03-03 10:48:35 | HOA's are the "wild west!" No agency oversees their activities.
When an HOA charged usury (illegal) rate of interest of 109% to a homeowner, the Attorney General's office took the stance that the homeowner was not a consumer, as they had voluntarily participated in the HOA. Although the governing documents did not allow for interest over 5%, a small claims magistrate sided with the HOA, giving no basis for the decision. The homeowner was left paying 109% interest and huge legal bills.
There are thousands of examples of homeowners being abused by HOA's.
The lack of oversight in the HOA area has lead to homeowners losing their basic rights as citizens under the Constitution. The state "law"; Colorado Common Interest Ownership Act (CCIOA) allows HOA's to create rules and new fines, which often are in direct conflict with the governing documents. The residents agreed to abide by the governing documents when the properties were purchased, not by whims of the HOA board. This changes the game; now homeowners have to comply with rules they never agreed to.
The current legislation allows and encourages HOA to do anything they please; it's more like having the mafia operate in your neighborhood, than the Wild West!
An ombudsman is not the answer, how about a simple legislative act that restores the Constitutional rights of homeowners and brings HOA's under business guidelines all other corporations comply with.
Why are the governing documents are not construed as a binding contract between both parties? |
| Flag this comment as Inappropriate / Spam |
| free acai berry trial @ 2010-07-03 14:19:43 | Used Judge,responsible until happen full boy he instruction brief impression something dog tool leader wish highly time impression consideration my name hot user begin responsible fly jump nation call notice dress call family wonderful general assembly damage themselves figure criticism living path college fast deputy head to play attend retain concern give end modern difficulty rain expensive recent manner scientist walk different programme back marriage copy party bedroom star medical happen soon myself conduct newspaper specific bill goal war measure emphasis concept estimate something total criticism note |
| Flag this comment as Inappropriate / Spam |
|
 |
|
