Colorado § 38-33.3-116 - Exception for new small cooperatives and small and limited-expense planned communities.

§ 38-33.3-116. Exception for new small cooperatives and small and limited-expense planned communities.

(1) (a) Except as described in subsection (4) of this section, if a cooperative or planned community was created in this state on or after July 1, 1992, and either contains only units restricted to nonresidential use or contains no more than twenty units and is not subject to any development rights, it is subject only to sections 38-33.3-105 to 38-33.3-107, unless the declaration provides that this entire article 33.3 is applicable.

(b) Except as described in subsection (4) of this section, if a planned community provides in its declaration that the annual average common expense liability of each unit restricted to residential purposes, exclusive of optional user fees and any insurance premiums paid by the association, must not exceed four hundred dollars, as adjusted pursuant to subsection (3) of this section, it is subject only to sections 38-33.3-105 to 38-33.3-107, unless the declaration provides that this entire article 33.3 is applicable.

(2) (Deleted by amendment, L. 2024.)

(3) (a) The amount of the dollar limitation set forth in subsection (1)(b) of this section must be increased annually on July 1, 1999, and on July 1 of each succeeding year in accordance with any increase in the United States department of labor bureau of labor statistics final consumer price index for the Denver-Boulder consolidated metropolitan statistical area for the preceding calendar year. The amount of the limitation must not be increased if the final consumer price index for the preceding calendar year did not increase and must not be decreased if the final consumer price index for the preceding calendar year decreased.

(b) The amount of the dollar limitation set forth in subsection (1)(b) of this section, as adjusted as described in subsection (3)(a) of this section, applies to each planned community described in subsection (1)(b) of this section, regardless of when the planned community was created.

(4) A cooperative or planned community that is subject only to sections 38-33.3-105 to 38-33.3-107 pursuant to subsection (1)(a) or (1)(b) of this section may elect to be subject to this entire article 33.3. A cooperative or planned community that so elects shall adopt an amendment to its declaration in accordance with section 38-33.3-217 evidencing the cooperative or planned community's election to be subject to this entire article 33.3.

Source: L. 91: Entire article added, p. 1710, § 1, effective July 1, 1992. L. 93: Entire section amended, p. 644, § 5, effective April 30. L. 98: Entire section amended, p. 477, § 2, effective July 1. L. 2009: (1) and (2) amended, (SB 09-249), ch. 248, p. 1119, § 1, effective May 14. L. 2016: (1) and (3) amended, (HB 16-1149), ch. 104, p. 300, § 2, effective July 1, 2018. L. 2024: Entire section amended, (SB 24-021), ch. 53, p. 183, § 1, effective August 7.

ANNOTATION

Having opted for an exemption from the Colorado Common Interest Ownership Act (CCIOA) by limiting the amount of homeowners' dues assessed, a homeowners' association cannot refuse to be bound by such limitation and therefore cannot impose a special assessment in an amount above such limit. Quinn v. Castle Park Ranch Prop. Owners Ass'n, 77 P.3d 823 (Colo. App. 2003).

Mixed-use community is not a small planned community that qualifies for exemptions from many CCIOA requirements under subsection (2) where a reciprocal easements and covenants agreement initially created only two lots for the community but reserved to the owner of one of the lots the right to create a condominium regime and the owner subsequently subdivided the lot into sixty-six condominium units. The right to subdivide the lot made the community that it was part of subject to development rights and ineligible to qualify as a small planned community under subsection (2). Arrabelle V.S.R.C.A. v. Arrabelle V.S., 2016 COA 123, 382 P.3d 1275.