Published in The Legal Intelligencer
VF Law of counsel Lee Freedman provides insight regarding affordable housing considerations for common interest communities. Freedman discusses the recent legislative efforts in Colorado aimed at promoting affordable housing within homeowners associations (HOAs) and common interest communities. While the intent is to make housing more accessible, Freedman argues that these policies often shift the financial burden from noncompliant owners—those who fail to pay assessments or abide by community rules—to compliant ones. As a result, responsible owners may face higher fees or a reduction in essential services. This dynamic can undermine the financial stability of associations, threatening the quality of life and property values within the communities.
The article emphasizes that HOAs are nonprofit entities reliant on assessments from owners to fulfill their legal obligations, such as maintaining common areas and preserving home values. When delinquent owners are shielded from consequences, associations are forced to either raise costs for everyone else or defer maintenance, which can have serious consequences—as seen in the tragic Surfside, Florida condominium collapse. Freedman warns that weakening an HOA’s ability to enforce rules and collect funds may ultimately harm the very communities affordable housing policies are meant to help, creating a “slippery slope” that endangers both property values and resident safety.
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