Limit Home Owners' Association Fee Increases For Common Elements
Impact
The passage of SB 60 would fundamentally alter the framework governing fee structures within HOAs across the state. By imposing a cap on allowable fee increases, the bill protects homeowners from unexpected financial burdens and incentivizes associations to operate with transparency and accountability. Should the bill come into effect, it would amend existing statutes regarding the powers of unit owners' associations, thus streamlining the process for fee adjustments while ensuring homeowner participation in such decisions.
Summary
Senate Bill 60, introduced in the Colorado General Assembly, seeks to regulate the fee increases imposed by homeowners' associations (HOAs) within common interest communities. Specifically, the bill prohibits unit owners' associations from increasing fees associated with the use, rental, or operation of common elements by more than 10% in any 12-month period unless a majority of the unit owners approve the hike. This legislative measure aims to provide financial protection to community members and prevent sudden and substantial cost increases that could burden residents.
Contention
Debate surrounding SB 60 primarily centers on the balance of power between unit owners and their associations. Proponents argue that the bill serves as a necessary safeguard for homeowners who might be subjected to arbitrary fee increases. Conversely, some stakeholders within the HOA community express concern over limiting associations' autonomy to manage their financial affairs effectively. This discourse highlights the broader tension between local governance and individual rights within community living arrangements.