UPDATING SR6 HOA’S GOVERNING DOCUMENTS
Note that the draft documents can be accessed at the bottom of this page or by clicking here
Background: The Declaration of Covenants, Conditions, and Restrictions governing our Community was prepared by the developer, McStain Enterprises, in 1980 -- over 44 years ago. It is basically the “constitution” for our Community, supplemented by the SR6 Articles of Incorporation and Bylaws (the “Governing Documents”). Since then, the State Legislature adopted the Colorado Common Interest Ownership Act (CCIOA) that governs HOAs like ours. Our current Governing Documents are not in compliance with CCIOA, contain many provisions that are no longer relevant, and have many ambiguities and details that are better located in our general rules and regulations. The intent of redoing our current Governing Documents is not to change any substantive rights, but to clean the documents up and make them compliant with CCIOA and consistent with one another.
Amended and Restated Governing Documents. Last year, the Board engaged Altitude Law – a Denver law firm specializing in HOA matters – to help prepare updated and more modern Governing Documents that comply with CCIOA. The Board has tentatively approved the drafts that are attached below.
Pursuant to the current Declaration and CCIOA, Owners representing at least 67% of all votes in the HOA must approve the new proposed Declaration, and a majority must approve the proposed new Articles of Incorporation and Bylaws. The attached drafts include Notes from Altitude Law that help explain the changes. Given the number of organizational, formatting, and other changes from our current Governing Documents useful word by word redlines were not deemed possible or useful.
Owner Input Requested. The Board wants to hear comments, questions, or concerns you may have. Please review the proposed new Governing Documents and send any comments, questions, or concerns to the Board using the following email link: shanahanridgesixhoa+DraftComments@gmail.com. Please make your remarks as specific as possible.
The deadline for submitting comments has been extended to 6 pm on Sunday July 28. Please send your comments to: shanahanridgesixhoa+DraftComments@gmail.com. If you have already submitted written comments, you need not resubmit them.
The Board will hold a community meeting on Thursday August 1 starting at 6 pm at the Pool House to allow live discussion and follow up questions on the written comments received. Please be there at the start. If you have questions or want to follow up on the written comments you submitted, this is your chance.
The Board will then meet at the Pool House at 5 pm on Tuesday August 20 to discuss among themselves what if any changes will be made to draft documents based on the written comments and suggestions received. You are welcome but not required to attend. There will be limited time for additional member input.
The Board will then send any proposed changes to Altitude Law for review. Once this is completed, redlined versions of the documents will be emailed to all members.
Shortly thereafter, Ballots will be mailed to all to vote on each of the proposed documents. There will be a 60 day voting period.
Owner Approval. The new proposed Declaration must receive the written approval from owners representing at least 67% of the total votes in the Association for it to pass. The proposed new Bylaws must be approved by the affirmative vote of 75% of the votes entitled to be cast with at least a quorum of owners voting. The proposed new Articles must be approved by the affirmative vote of a majority of the votes entitled to be cast with at least a quorum of owners voting. Shortly after the Annual Meeting a written ballot will be mailed to each Owner to separately approve or disapprove each of the proposed new Governing Documents. Using the mail ballot voting process has been recommended by the attorneys because it is very difficult to get the requisite owner approval at a meeting.
QUESTIONS AND ANSWERS
Question 1. Why do we need new Governing Documents?
Answer: As indicated above, the current Governing Documents are 44 years old and are outdated. In many instances they no longer comply with State law. The Declaration has many now irrelevant and unenforceable provisions, such as voting rights of McStain and restrictions on signs and xeriscaping.
Question 2: Why do the Governing Documents have to be so long?
Answer: CCIOA and other state laws are much more complex than they used to be. Also, care must be taken to avoid ambiguities, confusion, and try to avoid future disputes. Most such legal documents have gotten much longer over the last 44 years.
Question 3: Do the new Governing Document change my voting rights or assessment fees?
Answer: No.
Question 4: Do the new Governing Documents change my rights to use the Common Areas?
Answer: No.
Question 5: Do the new Governing Documents restrict my rights to sell or lease my property?
Answer: No. But upon the sale of a home, the proposed new Declaration requires the purchaser to pay an amount equal to six months’ assessment, which amount will be deposited into the Association’s reserves to help pay for future unexpected expenses that may arise.
Question 6: Do the new Governing Documents give the Board more power?
Answer: No. But they do clarify that the Board has the power to enforce the provisions of the Declaration and its rules and regulations, including the obligation of the Owners to maintain their homes in a good, neat, attractive, and well-kept condition.
Question 7: Do the proposed new Governing Documents change our architectural or fence requirements?
Answer: No, but the details regarding allowed colors, material, and design will be moved from the Declaration into our Architectural Review Policy to allow easier updating.
Question 8: What about parking and RVs?
Answer: The new proposed Governing Documents do not address these but instead give the Board the right to adopt rules and regulations about these and other matters in the future. The Owners will be given notice of any proposed changes to the Association’s current rules and regulations and an opportunity to provide input at an open Board meeting before they are adopted. This will allow a more focused discussion of such items. The Association’s current regulations do not allow parking of RV’s, trailers, detached campers, and mobile homes in the common parking area except during active loading and unloading.
Question 9: What are the proposed changes in the Articles of Incorporation and Bylaws?
Answer: The current Articles of Incorporation and Bylaws are also over 44 years old. The proposed new Articles and Bylaws make them consistent with the proposed new Declaration and state law. The changes are explained in Altitude Law’s Notes in the attached annotated versions of the Articles and Bylaws.