Milo recently obtained a victory at the Colorado Court of Appeals for a homeowners association in a dispute with a national builder over unpaid dues and misappropriation of Association funds. Milo’s client, the HOA, alleged it was owed approximately $400,000 in past dues and assessments from the builder/developer.
Previously, most HOAs in Colorado struggled to obtain unpaid dues and/or assessments from Declarants who argue assessment payments are not owed until annexation of each lot, which is typically at or near the time of sale to the purchasing homeowner.
In what appears to be a case of first impression in Colorado, the Court found that the Colorado Common Interest Ownership Act (“CCIOA”) and the HOA’s Declaration of Covenants, Condition & Restrictions entitled the Association to collect past dues/assessments, and damages, from the Declarant who failed to pay its share of dues/assessments for properties owned by the Declarant in the community. The developer argued that such payments were not due until annexation of each lot, which pushed the dues burden to the new and existing homeowners. In issuing its unpublished opinion, the Court of Appeals found the Association was entitled to Developer-paid dues/assessments for each lot created from the filing of the Association’s Declaration and plat until sale to the homeowner. The Court also found that the Board members appointed by the developer/builder acting as the Declarant owed a fiduciary duty to the Association.
Milo represents property owners, developers, builders, contractors and subcontractors throughout Colorado. Milo’s extensive construction experience provides his diverse client base with a unique perspective on how to achieve desired results.