THE HOA INFORMATION AND RESOURCE CENTER

Disclaimer • Note: The Information provided during this presentation is for educational purposes only and is not meant to provide or to be construed as legal advice. Any legal questions should be directed to your attorney.

WHAT IS DORA?

“DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer Protection is our mission.”

Meetings • Types of meetings: • Owner’s meetings – annual and special. • §38-33.3-308(1), C.R.S. – Meetings of the owners shall be held at least once per year. • Notice of: Not < than 10 nor > than 50 days.

• Special meetings of unit owners: • §38-33.3-308(1), C.R.S. – provision requiring an association to hold a special meeting upon request of unit owners having twenty percent, or any lower percentage specified in the bylaws.

• Board meetings – regular and special. • §38-33.3-308, C.R.S.

• Conduct at meetings. • §38-33.3-209.5(1)(b)(III), C.R.S. – requiring associations to adopt responsible governance policies concerning conduct of meetings.

Meetings

§38-33.3-308

• Board meetings are open. • Agendas shall be made reasonable available. • Members have the right to speak. • The board can regulate the amount of time to speak. • A reasonable number of persons must be allowed to speak on each side of an issue.

Statutory Authority • §38-33.3-308 (2.5) • (a) Notwithstanding any provision in the declaration, bylaws, or other documents to the contrary, all meetings of the association and board of directors are open to every unit owner of the association, or to any person designated by a unit owner in writing as the unit owner's representative. • (b) At an appropriate time determined by the board, but before the board votes on an issue under discussion, unit owners or their designated representatives shall be permitted to speak regarding that issue. The board may place reasonable time restrictions on persons speaking during the meeting. If more than one person desires to address an issue and there are opposing views, the board shall provide for a reasonable number of persons to speak on each side of the issue.

Owner’s Meetings • • • • • • • •

Purpose and Authority Types – Annual and Special Notice Attendance Quorum Procedure Disruptions (facilitator or mediator) Owner forums

Board Meetings • • • • • • • •

Purpose and Authority Types – Regular and Special Notice Attendance Quorum Procedure Owner forums Board Executive Sessions

Working Sessions • • • •

Not defined Usually for a specific purpose. Open if not in executive session. No decisions being made, so no right to speak? • Business meetings.

Board Executive Sessions •

§38-33.3-308(4), C.R.S. – requiring the association board of directors to limit their discussions in executive sessions to specific enumerated topics.

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Matters pertaining to employees or manager’s contract or involving employment, promotion, discipline or dismissal of an officer, agent or employee. Consultation with legal counsel concerning disputes that are the subject of pending or imminent court proceedings or matters that are privileged or confidential between attorney and client. Investigative proceedings concerning possible or actual criminal misconduct. Matters subject to specific constitutional, statutory or judicially imposed requirements protecting proceedings or matters from public disclosure. Any matter, the disclosure of which would constitute an unwarranted invasion of individual privacy. Review of or discussion relating to any written or oral communication from legal counsel.

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Proper Procedure: - Before going into executive session, must announce the general matter of discussion. - May not adopt any rule or regulation during executive session. - Minutes of meeting must indicate that an executive session was held and the general subject matter.

Problems in Meetings • Meeting and motion procedures. - Consider Robert’s Rules • Notice of meetings • Open meetings • Owner’s right to participate • Ability to speak and time • Disruptions • Need for a meeting facilitator • Security concerns

Decisions Made Outside of a Meeting • • • • • •

Authority. Look at bylaws Consent, Notice and Waiver. Decisions in writing. Ratified at next meeting. Reflect in minutes.

Minutes • • • •

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Association’s record of approved action. Written minutes. Recordings. Contents of minutes (detailed wording of the motion and result of the vote). Detail of the minutes varies and is usually brief. Approval of minutes (at next board meeting or annual meeting – sometimes earlier). Publication and accessibility of minutes. Availability for prospective purchasers. HB12-1237: CIC Record-Keeping § 38-33.3-317(1)(c), C.R.S. – Minutes of all meetings of its unit owners and executive board, a record of all actions taken by the unit owners or executive board without a meeting, and a record of all actions taken by any committee of the executive board. § 38-33.3-317(2)(a), C.R.S. – records maintained by the association must be available for examination and copying by a unit owner or the owner's authorized agent (unless excepted).

Elections • • • • •

Annual election. Voting in person or by proxy. Election monitoring. Election disputes. Quorums: §38-33.3-309, C.R.S.

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(1) Unless the bylaws provide otherwise, a quorum is deemed present throughout any meeting of the association if persons entitled to cast twenty percent, or, in the case of an association with over one thousand unit owners, ten percent, of the votes which may be cast for election of the executive board are present, in person or by proxy at the beginning of the meeting. (2) Unless the bylaws specify a larger percentage, a quorum is deemed present throughout any meeting of the executive board if persons entitled to cast fifty percent of the votes on that board are present at the beginning of the meeting or grant their proxy, as provided in section 7-128-205 (4), C.R.S.

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Voting and Proxies §38-33.3-310 • Votes for contested positions on the board are by secret ballot. • Ballots shall be counted by a neutral 3rd party of by a committee of volunteers. • Results of the vote taken by secret ballot shall be reported without reference to the names, addresses, or other identifying information of unit owners participating in such vote. • Votes allocated to a unit may be cast pursuant to a proxy duly executed by a unit owner. • Unless otherwise provided for in the governing documents, appointment of proxies may be made substantially as provided in §7-127-203, C.R.S. (Colorado Non-Profit Act).

Voting Voting in person or by proxy. • §38-33.3-310(b)(I), C.R.S. – requiring that votes for contested positions on the executive board be taken by secret ballot; and that the ballot be counted by a neutral third party or by a unit owner(s) who is not a candidate, who attends the meeting at which the vote is held. • § 38-33.3-310.5(1), C.R.S. – requiring any association board member to declare a conflict of interest and abstain from voting on any issue that would financially benefit himself/herself or a member of their immediate family. • Applies to executive boards and officers, and any person to whom the board delegates responsibilities under this article, including, without limitation, a managing agent, attorney, or accountant employed by the board. • §7-128-501, C.R.S. (Colorado Non-Profit Act) applies to this provision.

Colorado Non-Profit Act provisions • Meetings: •

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§7-121-402. Notice. - In person; telephone, telegraph, teletype, electronically transmitted, or other form of wire or wireless communication; or by mail or by private carrier. §7-127-101. Annual and regular meetings. - For members. §7-127-102. Special meeting. - Procedures to call special meetings. §7-127-103. Court-ordered meeting. - Application to the Court to hold or notice member meeting. §7-127-104. Notice of meeting. - Notice consistent with its bylaws and in a fair and reasonable manner.

Colorado Non-Profit Act provisions •

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§7-127-201. Members list for meeting and action by written ballot. - An alphabetical list of the names of all its members who are entitled to notice of, and to vote at, the meeting or to take such action by written ballot. - List made available for inspection. §7-127-202. Voting entitlement generally. §7-127-203. Proxies. - Unless otherwise provided by the bylaws, a member entitled to vote may vote or otherwise act in person or by proxy. - Appointment of a proxy (See statute section.) §7-127-204. Nonprofit corporation's acceptance of votes. §7-127-205. Quorum and voting requirements for voting groups. - A quorum must be present to vote. Unless otherwise provided in articles 121 to 137 of this title or the bylaws, twenty-five percent of the votes entitled to be cast on the matter by the voting group constitutes a quorum of that voting group for action on that matter.

Colorado Non-Profit Act provisions •

Meetings and Action of the Board:

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§7-128-201. Meetings. - May hold regular or special meetings. §7-128-202. Action without meeting. - Process for holding such meetings and notice. §7-128-203. Notice of meeting. - Unless otherwise provided in articles 121 to 137 of this title or in the bylaws, regular meetings of the board of directors may be held without notice of the date, time, place, or purpose of the meeting. §7-128-204. Waiver of notice. - Director may waive notice of meeting. §7-128-205. Quorum and voting. - Unless a greater or lesser number is required by the bylaws, a quorum of a board of directors consists of a majority of the number of directors in office immediately before the meeting begins. §7-128-206. Committees of the board. - Board of directors may create one or more committees of the board and appoint one or more directors to serve on them.

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HOA Information and Resource Center • Gary Kujawski HOA Information Officer 1560 Broadway, Suite 925 Denver, CO 80202 ph# 303-894-2355

Email: [email protected] Website: www.dora.colorado.gov/dre

THANK YOU DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission.