Protecting the HOA in Spite of Itself: Shareholder Derivative Actions
Unfortunately, construction defects are far from uncommon in townhome, condominium, and other common interest communities. When faced with defects, the typical response of an HOA Board of Directors is to retain legal counsel and pursue the developer, contractor(s), and/or design professionals, ultimately putting the financial burden of the needed repairs on those who caused the construction defects in the first place. What happens though when an HOA Board of Directors is unwilling to take legal action?
Colorado SB-220 Runs Out of Time, is Dead
May 5, 2014, the Colorado Senate Committee on State, Military, and Veterans Affairs took two-and-one-half hours of testimony on SB-220, which would have gutted the rights of homeowners associations to bring construction defect claims by requiring non-appealable arbitration in all instances, as well as placing other onerous requirements on such defect claims.
Colorado Legislature Immediately Kills SB-219, Homebuilders’ Proposal to Study the Alleged Shortage
May 1 the Colorado Senate Appropriations Committee voted 5-2 to kill Senate Bill 219, which would have given the divisions of housing, insurance, and law a combined $150,000 to collect data on and investigate the current homebuilder-alleged shortage of owner-occupied affordable housing (a/k/a condominiums and townhomes).