(editor’s note: Stan Hrincevich is a hero in the Colorado HOA fight. After years of fighting he’s gotten a few legislators to pay attention and pass a handful of reform bills. The bills still need work. But the reaction to Stan by the CAI is interesting, and instructive to all of us.)
guest blog by Stan Hrincevich (letter to legislators from coloradoHOAforum.com)
The fight for financial relief for small CAMs in this Bill was not supported by the CAI in the last legislative session. The cost of a license for small CAMs can equal a year’s income: it’s abusive and burdensome. Previous misinformation spread was that the goal was to exempt small CAMs from being licensed: not true, never in any proposal but believed by too many. This Bill provides fairness and relief to small business with reduced fees and educational requirements commensurate with knowledge to legally and competently service small HOAs of 30 or less units. Educational providers are able to offer small HOA CAM courses at a reduced cost. Costs for Colorado Department of Regulatory Agencies to implement should be covered in the same manner as completed when the total licensing law was implemented.
The Community Association Institute (CAI), the group representing property manager and HOA legal interests, has been lobbying the legislature to oppose our upcoming Bill to improve the CAM licensing law even before the Bill has been officially submitted. The misinformation and untruths are insulting to home owners and exemplifies how CAI wants to continue to be a protected organization/profession with special privileges and the power to operate with secrecy and no accountability.
Here is what I picked up from legislators about CAI’s objections to our proposed Bill:
1. Our Bill proposes that all CAM fees be documented on a receipt to the payee, include an itemization of the charges, be in compliance with the law (in the case of Transfer Fees), justify charges by work performed, explain how the fee is not included and paid for by HOA dues (duplicate charging), and as in the case of the Transfer Fee, a receipt be provided to the home owner 3 days prior to closing. Additionally, all fees should be reasonable. THE CAI OBJECTS TO THIS! THEY WANT THE PRIVILEGE TO BILL YOU WITHOUT PROVIDING A RECEIPT OR JUSTIFYING CHARGES. JUST DO IT BECAUSE THEY CAN. Do you think Master Card, VISA, Comcast, or Xcel Energy would get away with demanding a payment and not justifying the charges?
3. We want to improve and better define how CAMs must comply with State HOA law and HOA governing documents. No, the law is not very defined but is general and lacks specific accountability. CAI feels the broad and ambiguous statements in the law and rules are adequate. What do they have against requiring any clarity in following the law? This speaks for itself.
4. The fight for financial relief for small CAMs in this Bill was not supported by the CAI in the last legislative session. The cost of a license for small CAMs can equal a year’s income: it’s abusive and burdensome. Previous misinformation spread was that the goal was to exempt small CAMs from being licensed: not true, never in any proposal but believed by too many. This Bill provides fairness and relief to small business with reduced fees and educational requirements commensurate with knowledge to legally and competently service small HOAs of 30 or less units. Educational providers are able to offer small HOA CAM courses at a reduced cost. Costs for Colorado Department of Regulatory Agencies to implement should be covered in the same manner as completed when the total licensing law was implemented.
Eventually, all of us in this fight for homeowners rights get discouraged. The goal of educating other homeowners is frustrating. Often it seems impossible. We wonder how we can make even a little dent in the massive corruption that infests and characterizes the Homeowners Association movement.
But don’t ever doubt your power as a individual human being to change the world.
Back in 2009, Dave Carroll, a musician from Nova Scotia, was frustrated when his expensive Taylor guitar was severely damaged through the negligence of United Airlines. He was even more frustrated by the callous handling of his damage claim. He couldn’t fight back. But as a musician, he could write a song.
Now, Carroll is a star on the international speakers circuit. He’s making a fortune with his CDs, his books, his concerts and his personal appearances.
Dave Carroll is just one voice out of seven billion. Yet since 2009 his song and his story have been viewed and have impacted more than 150 million people. And United Airlines has spent a fortune trying to repair its damaged image.
The new paradigm is social media. And you and I, my friends, are squarely in the middle of the revolution.
Here’s link to Carroll’s TEDx talk, along with his song, United Breaks Guitars:
There’s yet another home confiscation in Florida, this one in the Waters Edge Homeowners Association. A young Florida family got behind in their HOA dues and their home was snatched right out from under them.
Young families are not wise to the ways of the world. They don’t understand how profoundly corrupt organizations like the HOA movement can simply steal what they own. Young people trust in the honesty of neighbors and neighborhood lawyers. Sadly, too many families who are just searching for a dream end up living a nightmare.
guest blog by Stan Hrincevich (coloradohoaforum.com)
Colorado Springs Town Hall Meeting: let us know how you can help get the word out about this meeting on Feb 13: contact legislators, post flyer at your HOA, local media, etc.
Construction Defects Legislation: here we go again with the Denver Post exclusively contacting the Community Associations Institute (CAI) to represent homeowners’ interests in how homeowners’ money is used in litigation. Below is our letter to the editor of the Denver Post and copied to legislators:
“The Denver Post again allows those making millions of dollars from HOA Construction Defects (CD) litigation to represent the voice and rights of homeowners and distort the debate in CD legislation reform. No input is accepted from any recognized homeowner’s organizations. Once again, the only point person on homeowner’s rights is none other than the Community Associations Institute (CAI). The CAI represents the interests of property managers and HOA lawyers, NOT HOMEOWNERS! If CD legislation is ever be explained in a truthful, balanced, and productive manner it must first get by the pervasive CAI smoke screen.
First, almost all HOAs created in the past 15 years mandate in their Declaration that arbitration must be used in CD dispute resolution. Of the 8,500+ HOAs in the State most are beyond the statute of limitations and cannot sue. As a percentage or relative number of all HOAs, those that changed their Declaration (at the encouragement of HOA lawyers) is very, very small. Thus, precluding HOAs from changing their declaration and infringing upon homeowner’s rights is a weak argument. Furthermore, a recent Colorado court case has ruled HOAs can be prevented from changing their Declaration. The CAI would have the public believe the inability to change the Declaration will have a profound impact on homeowners’ rights but the reality is that it would mostly impact the ability of HOA lawyers to promote litigation in our costly court system.
The other issue involves requiring homeowners to vote on the approval of the use of their own funds in CD litigation. Currently, any HOA Board at the encouragement of their attorney can spend unlimited HOA funds on litigation without the knowledge or approval of homeowners. The CAI opposes this empowerment of homeowners as it would effectively reduce litigation.
We at the Colorado HOA Forum offer the following CD legislative proposal to mitigate litigation and empower homeowners: “HOA homeowners are required to be apprised of and vote on the use of HOA funds in all litigation.” Why is this so difficult?”
