A developer in Jefferson County creates a planned residential community with 200 homes and an HOA. The developer sells all units over three years. Under CCIOA, once the developer has sold a sufficient percentage of units, what significant change in HOA governance must occur?
Correct Answer
A) The developer must transition control of the HOA to the unit owners through a mandatory declarant control period expiration
Under CCIOA (C.R.S. § 38-33.3-303), a developer (declarant) may control the HOA during an initial 'declarant control period,' but this control must be transitioned to the unit owners once specified thresholds are met — such as when a certain percentage of units have been sold or a maximum time period has elapsed. CCIOA mandates that unit owners ultimately gain control of their association's governance, protecting them from indefinite developer dominance over the HOA's decisions, budget, and management.
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Related Topics & Key Terms
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Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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