6.14.104: NOTICE TO HOMEOWNERS:
Homeowners shall be informed by the executive boards of homeowners' associations of actions regarding construction defects and shall have the right to: a) give meaningful input, b) make well considered judgments, and c) give, or withhold, informed consent, as provided herein. Accordingly, if a governing board of a homeowners' association intends to institute an action asserting one or more construction defects that affects five (5) or more units, the board must do each of the following:
A. Before filing any action under Colorado Revised Statutes section 38-33.3-303.5, mail or deliver a written notice to each homeowner at the homeowner's last known address.
B. The notice required by this section must contain the following information:
1. The nature of the action and the relief sought;
2. The amount of expenses, fees, and attorney fees the executive board anticipates will be incurred in prosecuting the action;
3. The last date(s) upon which a claim(s) may be filed under applicable statutes of limitation or repose;
4. The expected range of recovery if the association prevails, excluding attorney fees and other fees and expenses associated with litigation;
5. If the executive board has, or intends, to enter into a contingency fee arrangement, the percentage of the gross or net recovery for the attorney fee, and other fees and expenses of litigation that are in addition to the contingency fee;
6. The estimated amount of attorney fees and costs for which the homeowners' association may be liable if it is not the prevailing party, including the opposing party's attorney fees and costs;
7. A statement that if the association does not prevail, it may also have to repair the construction defects;
8. A statement that until the construction defects are repaired, and while the construction defect claim is pending: a) the market value of units may be adversely affected, b) unit owners may experience problems with refinancing, and c) prospective purchasers may experience problems with financing;
9. An estimated range of time during which the construction defect claim may remain pending;
10. Whether the builder has offered to make any repairs and, if so, whether the builder has made any repairs; and
11. The steps taken by the builder to address the alleged construction defects, including any acknowledgments, inspections or repairs.
C. Nothing in this section shall: 1) require the disclosure in the notice or the disclosure to a homeowner of attorney-client communications or other privileged communications; 2) permit the notice to serve as a basis for any person to assert the waiver of any applicable privilege or right of confidentiality resulting from, or to claim immunity in connection with, the disclosure of information in the notice; or 3) limit or impair the ability of the executive board to contract for legal services, or limit or impair its ability to enforce such a contract for legal services, consistent with consent provided under section 6.14.105 of this part.
D. To the extent the foregoing notice includes information that is an amount, estimate, or range, the notice must provide either the basis for such determination, which may be the good faith belief of the executive board of the homeowners' association, or a statement that such information is unknown. (Ord. 15-93)
