You have most likely heard the media reporting on the new Senate Bill 05-100 (also known as the "Homeowners' Bill of Rights") laws signed by Governor Owens for Homeowner Associations (HOA’s). The majority of the reports were limited to the seven (7) immediate changes to the governance of HOA’s. Below is a brief summary of the immediate changes.

Effective 6/6/05: Allow Xeriscaping; Turf maintenance during water restrictions; allow the display of the American Flag; allow the display of campaign signs; parking of emergency vehicles; allow for modifications to landscaping and roofing materials that are a fire hazard; and reduce the percentage of votes need to modify the CCR’s (only if in excess of 67%).

The new law also has an affect on many other aspects of the governance and operation of associations in Colorado. Although SB 100 had provisions that took effect immediately on its passage, the majority of the law took effect on January 1, 2006. As of this date, associations are required to be in compliance with the law's new requirements, including the adoption of seven responsible governance policies and procedures.

Board members have worked very hard to understand the new requirements and take the necessary steps to ensure their association is in compliance. Policies and procedures have been adopted concerning 1) collection of unpaid assessments; 2) handling board member conflicts of interest; 3) conduct of board and owner meetings; 4) enforcement of covenants and rules; 5) owner inspection and copying of association records; 6) investment of reserve funds; and 7) the adoption and amendment of policies, procedures, and rules.