DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

HOA INFORMATION AND RESOURCE CENTER 

EMERGENCY RULE

4CCR 725 -5

TEMPORARY REGISTRATION FOR HOMEOWNERS’ ASSOCIATIONS

Section 1.	Authority
Section 2. 	Scope and Purpose
Section 3. 	Applicability
Section 4.	Temporary Registration for Homeowners’ Associations
Section 5.	Effective Date

Section 1	Authority

The Director of the Division of Real Estate adopts the following emergency rule according to her authority as found in §§ 12-61-406.5(5) and 24-4-103(6), C.R.S.

Section 2	Scope and Purpose

The Director finds that immediate adoption of this rule is imperatively necessary for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of § 24-4-103, C.R.S., would be contrary to public interest.

The Director has learned that homeowners’ associations (“HOA”) required to be newly registered pursuant to the passage of House Bill 10-1278 may need additional time in order to comply.  Section 38-33.3-401(1), C.R.S. requires every unit owners’ association organized under § 38-33.3-301, C.R.S. to register annually with the Director of the Division of Real Estate.  The registration requirement begins on January 1, 2011.  Pursuant to § 38-33.3.401(3), C.R.S. a HOA that fails to register is ineligible to impose or enforce a lien for assessments or to pursue any action or employ any other enforcement mechanism under § 38-33.3-123, C.R.S.  The Division of Real Estate registration database will be operational on December 30, 2011.  It is anticipated that over 12,000 HOA’s will be registering on this database.  Therefore, it is anticipated that many HOA’s may be non-compliant with the registration requirement and therefore unable to legally exercise their right to recover delinquent assessments.  The purpose of this rule is to provide an immediate and automatic temporary registration to HOA’s who have not been required to be registered in the past, but are now required to do so pursuant to House Bill 10-1278.

To prevent a HOA from exercising its ability to assess liens until fully compliant with the provisions of the statute would cause severe and grave economic harm to them and, potentially, an undue burden on the courts of the State of Colorado.  Accordingly, the Division must promulgate an emergency rule that allows both for immediate temporary registration of all HOA’s and provide adequate time for these affected associations to become compliant with registration requirements. Without the immediate adoption of this emergency rule, the public’s interest is not served.  Wherefore, the Director, pursuant to § 24-4-103(6), C.R.S. has an obvious and stated need to adopt this rule.

Section 3	Applicability

This emergency rule governs all homeowners’ associations in the State of Colorado as defined in §12-61-401(2.5).  

Section 4.	Temporary Registration for Homeowners’ Associations

1.	All HOA’s defined under §12-61-401(2.5), C.R.S. are hereby granted an immediate and automatic temporary registration by the Director.

2.	Temporary registrations will expire on March 1, 2011.  Applicants are required to validly register with the Division of Real Estate prior to March 1, 2011.

3.	Any temporary registration issued by the Director shall have the same force and effect of the registration required by § 38-33.3-401, C.R.S. for the period of time it is in effect.

5.	Once the HOA fully complies with the terms of the new law as determined by the Director, the Director shall register the HOA in accordance with § 38-33.3-401, C.R.S.  The date this occurs will be the HOA’s anniversary date for purposes of compliance with the annual registration requirement of § 38-33.3-401(3), C.R.S.

Section 5.	Effective Date

This emergency rule is effective December 15, 2010.