Amendment regarding Small and Limited Expense Planned Communities effective July 1, 2018

C.R.S. 38-33.3-116 and 38-33.3.-119 of the Colorado Common Interest Ownership Act (CCIOA) currently excludes= certain small and limited expense communities from having to comply with most provisions of CCIOA with the exception of sections 38.33.3, subsections 105-107. The limitation does not apply if an association’s Declaration subjects it to all of the provisions of CCIOA.

To currently qualify for the exemption, an association must meet the following requirements:

If the community was created prior to July 1, 1998:

1. A community cannot contain more than ten (10) units; AND
2. The community must not be subject to development rights

If a community was created on or after July 1, 1998:

The exemption applies to the following communities:

1. A community with only units restricted to nonresidential use OR
2. If the community contains no more than twenty (20) units AND is not subject to development rights.

Alternatively, a community can

qualify for the exemption if it provides in its declaration that the annual average common expense liability for each unit restricted to residential purposes (exclusive of optional user fees and any insurance premiums paid by the association) cannot exceed three hundred $300.00 dollars. However, this monetary limit will be increased to $400.00 effective on July 1, 2018.  This, of course, is not a fixed monetary limit and can increase in accordance with increases in the consumer price index (cpi).