Blog
By Heidi Scanlan
Most HOA boards don’t run out of ideas they run into too many of them. Meeting agendas get packed, budgets keep carrying old “zombie” line items, and discussions circle around without much getting finished. The fix isn’t more meetings, it’s a simple system that takes a community’s wish list and turns it into a funded, 90-day action plan.
Here’s a 5-step framework any HOA can use, with tips on using common HOA specific industry software to make it practical in conjunction with your Community Management Team.
1) One Door for New Ideas
Owners, committees, and vendors all have ideas. Without a single way to collect them, the loudest voice wins.
How to fix it:
Why it works: Everyone gets equal access, and the board sees better, more complete requests.
2) Rank Requests with Clear Criteria
Debates shrink when everyone agrees on how to judge projects.
Score each request on things like:
Top-scoring projects go into the next 90-day work cycle.
3) Work in 90-Day “Sprints”
Annual budgets set a big picture. Real progress happens in quarters.
4) Tie the Budget to Real Goals
A budget shouldn’t just be a list of expenses, it should show what the community is trying to achieve.
Now when an owner asks, “Where’s my money going?” you can say:
5) Report What Matters, Drop the Rest
Skip long reports. Use three simple tools:
Zombie test for line items:
Saying “no” without burning bridges is possible when the process is framed as fair and consistent. For example, if a project scores below the quarterly cut-off, it isn’t rejected outright—it stays in the backlog for review at the next cycle. If an item lacks an owner, scope, or clear goal, it can be closed with the option to resubmit if circumstances change. This way, the decision feels process-driven, not personal.
To make sure good ideas aren’t lost, “nice-to-haves” can be placed in a parking lot. These items are reviewed quarterly rather than monthly, creating space for higher-priority work. If an idea sits untouched for a year, it is automatically retired unless re-submitted. This keeps the list fresh while preserving opportunities for future consideration.
At its core, the HOA budget is the community’s financial plan. It balances day-to-day operation such as landscaping, utilities, insurance, and management with reserves set aside for long-term repairs like roofs, siding, or elevators. Best practices include taking a conservative approach to expect cost surprises, aligning the one-year budget with three- and five-year plans, gathering owner input through short surveys, and staying compliant with governing documents and state law.
Strong governance requires clear guardrails. Boards must act in the best interest of the entire community, ensuring that financials and approved budgets are shared on time. Major budget decisions must be approved by the whole board, not by individual directors acting alone.
With this approach, several positive changes take place. Owners gain clarity on where their money goes, projects move forward within 90 days instead of lingering for years, and every idea is reviewed under the same criteria. The community also becomes more resilient, with the ability to address emergencies without chaos. Ultimately, budgets stop being seen as spreadsheets and instead become the community’s roadmap. Every dollar tells a story, and this method ensures it moves from wish list to visible results.
Awaiting bio & headshot: By Heidi Scanlan for Common Interest (CAI-RMC)
As we come to the close of another year for Colorado community associations, it’s clear that HOAs are navigating an increasingly complex landscape. From variable insurance costs to accelerating repair cycles all the while trying to navigate Colorado’s unpredictable weather, the pressures on boards and managers continue to build. These challenges are not isolated — they intersect, amplifying both the financial and operational strain on associations of every size.
Our committee has spent considerable time discussing these trends, and while the picture may seem daunting, we also see opportunity.
With thoughtful planning, transparent communication, and a proactive mindset, communities can adapt to today’s realities while preparing for tomorrow’s demands. This article is our collective effort to provide perspective, guidance, and a few practical tools that can help board members chart a more confident path forward.
In the following sections, we will explore a key area shaping the future of community management — from reserves and insurance to construction, lending, and overall governance. We’ll highlight what we’re seeing now, what’s likely ahead, and most importantly, what steps boards can take today to be better prepared for what’s coming next.
General Financial Outlook
Although inflation continues to trend upward, the increases we’re seeing are somewhat more palatable than the significant spikes experienced earlier in 2025 and in previous years. Interest rates—both for investments and debt—have remained relatively steady, though experts have projected we can anticipate a continued slow and gradual decrease in late 2025 and early 2026.
The most productive action for an HOA board at this time is to focus on positioning the Association as favorably as possible in the financial market by addressing items commonly reviewed by underwriters. In addition to reserve funding, both insurers and lenders evaluate a community’s financial position through delinquencies/bad debt ratios and rental percentages.
This year we’ve spent a significant amount of time exploring the negative effect of delinquencies on community associations in detail and state legislation has certainly kept this focus as well (although perhaps with a misunderstanding of the detriment uncollectable debts have on the ability for an Association to maintain its physical elements properly). Proactively managing these two areas (as well as committing to the reserve funding plan) can often benefit the Association through improved insurance premium rates and more favorable consideration if a loan is needed in the future. By maintaining a strong financial position, the Association can reduce its exposure to higher rates.
It is also a good idea to take advantage of current rates by investing in appropriate interest drawing accounts if the projected rate decreases. Availability of higher rates through certificates of deposits (cds) and money market accounts can help an association maximize its reserve funds before the money is needed for future projects.
Insurance
The HOA insurance market continues to evolve under mounting pressure from economic, environmental, and regulatory forces. Historically, across Colorado and beyond, communities are experiencing sharp premium increases, limited carrier availability, and stricter underwriting requirements. Understanding these trends — and responding proactively — can help your association remain an attractive risk in the eyes of insurers.
The Current Landscape: Carriers are facing unprecedented losses due to inflation, rising construction costs, and an uptick in severe weather events. Carriers have become more selective, often reducing capacity in high-risk regions or tightening terms for older buildings and communities with deferred maintenance. Property valuations are being closely scrutinized, and policies are being restructured to ensure replacement cost accuracy. Meanwhile, liability and directors & officers (D&O) claims are growing as communities navigate complex governance and vendor relationships.
The Outlook Ahead:Although we are seeing rate decreases after a mild year of relatively few hail storms and a mild wildfire season; forecasts suggest that premium pressures will persist over the next 12–24 months as insurers balance portfolios and rebuild reserves. Communities with poor loss history, inadequate reserve funding, or outdated property maintenance records will face the toughest renewals. However, associations that demonstrate strong risk management practices and financial responsibility will remain top candidates for competitive coverage options.
The Bottom Line: While the HOA insurance market is challenging, preparation is power. Communities that treat insurance as a year-round partnership — not a once-a-year renewal — will not only mitigate premium increases but also stand out as preferred risks in a tightening market.
Reserves
One of the most common inquiries we receive from readers is - when will a Reserve Study law be implemented in Colorado?
In 2022, a Reserve bill landed on the desk of the governor, but was then vetoed. No new Reserve Study related legislation was presented on the floor in 2023, 2024, or 2025. Will 2026 be the same? We will see.
However, what is important for boards to understand is they are ultimately responsible for the funding for their community, regardless of the legislation. Even if a bill is not passed, boards and owners need to understand that the responsibility for paying for the ongoing maintenance of the HOA ultimately rests on themselves.
We want to encourage boards that they have the ability to cast the vision for their association. They can change course for the better. It is not easy, but it can be done. What are some things to remind our board members?
Roofing and Building Components
Problems occur with roofing and exterior components when deferred maintenance is left unchecked and there is a lack of annual inspections. With the weather we get in Colorado, annual roof inspections should be expected.
It is a common occurrence when a roofing company is requested to inspect a community’s roof only to find that previous hail damage is causing an issue, and to make matters worse, the damage can no longer be used to pursue a claim due to filing timeline restrictions. Additionally, many old and aging communities have inadequate reserves or have no funding plans to address deferred maintenance. Annual inspections, preventive maintenance, and proper future planning is key.
Another issue is that homeowners may not have proper HO-6 loss assessment insurance coverage to pay for their assessment/portion of the deductible for an insurance claim. This requires some homeowners to pay large portions out of pocket when they could have had the right coverage.
Another issue is when a board elects to not have the building inspected after the building has experienced substantial hail and wind storm. Neglecting an inspection could affect future insurability, as well as lead to future leaks and maintenance issues. If the owners eventually discover an issue due to the prior storm, the replacement cost could be 100% out of pocket for the homeowners. The board has a fiduciary responsibility to take care of their community, and that includes annual inspections.
The Editorial Committee has spent a considerable amount of time this year exploring complex issues affecting community associations and different ways to present tools and multiple perspectives that can help the leadership in every community association address these complex issues and strategize ways to stay ahead of what might being coming next. It is our hope that through education, communication and proper planning we can all use these lessons to make our communities stronger.
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By Marcia Pryor, LMI Colorado
If your community’s water bill keeps climbing while the turf keeps browning, that’s not “bad luck,” that’s a system problem you can fix. Colorado’s semi-arid climate isn’t changing in your favor, and two-to-three-day watering schedules are the new normal. Plan for it, budget for it, and design for it. Here’s a blunt, board-friendly roadmap to get water use down and curb appeal up without turning your property into a gravel pit.
Start with a Plan (before you touch a sprinkler)
Xeriscape isn’t code for “zeroscape.” Done right, it’s green, colorful, seasonal, and functional. The framework is seven principles: (1) plan/design; (2) soil improvement; (3) hydrozoning; (4) practical turf; (5) efficient irrigation; (6) mulching; and (6) appropriate maintenance. Use them as your agenda for a working session with your landscape partner, and document decisions by area (entrances, streetscapes, parks, courtyards) so you can phase over 2–3 years rather than attempt a budget-busting overhaul in one shot.
Key decision rules:
Irrigation: Fix the System, Then the Schedule
You won’t save water with thirsty designs, and you won’t save it with leaky, mismatched irrigation either. Expect to make targeted upgrades and then manage the system like an asset, not a set-and-forget timer.
High-impact upgrades (ranked for ROI):
Operational standards:
Phasing & Budgeting
Most communities succeed with a three-phase plan that blends quick wins and capital items:
Phase 1 (0-6 months): “Control What You Can Today.” Smart controllers, pressure regulation, nozzle retrofits, leak repairs, top dress mulch to retain moister levels, mowing height policy, and resident education (“Every drop counts”). Commit to a strong and thorough landscape maintenance program to protect your assets. Expect immediate savings and healthier plant response.
Phase 2 (6-18 months): “Design Out the Waste.” Remove nonfunctional turf (strips, slopes, islands). Convert those areas to hydrozoned planting beds with drip, fabric-free mulch, and region-appropriate plants. Prioritize high-visibility entrances and chronic problem zones first.
Phase 3 (18-36 months): “Future-Proof.” Where lawns are truly needed, convert to lower-water turf varieties; continue bed conversions; add monitoring tech (flow sensors, alerts) to catch stuck valves/leaks quickly; formalize an annual irrigation audit and soil program.
Governance: Set Targets, Then Inspect What You Expect
Common Pitfalls (and how to avoid them)
Bottom line: you can’t control the weather, but you can control design, hardware, and habits. Plan ahead, phase intelligently, and manage to metrics. Your landscape will look better, your water spend will shrink, and your community will be set up for the climate we actually have… not the one we wish we had. Every drop still counts.
Author Bio
Marcia Pryor have been in the landscape industry for over 40 years and has held many roles including Landscape Architect, Account Manager, and Business Developer. She is currently a BD for LMI Colorado, a local commercial landscaping company who prides itself on providing superior landscape and irrigation design, development, commercial maintenance, and snow removal services. Sustainability is a part of all aspects of the company.
By Mike Wachtel
When it comes to maintaining a community, proactive care always outperforms reactive fixes by both reducing risk and lowering costs. For HOA communities, where shared spaces are central to residents’ quality of life, preventative maintenance and annual inspections aren’t just best practices; they are essential.
Why Annual Inspections Matter An annual inspection provides a clear picture of your property’s current condition, helping communities and managers prioritize needs before they become emergencies or costly issues.
Unaddressed minor issues can cause large risks. Identifying small cracks in asphalt before they expand, trimming trees before limbs become hazardous, or repairing lighting before dark walkways invite accidents can make all the difference in safety and long-term costs. When minor issues become major risks, legal liability for injury increases.
Inspections protect residents and preserve property values. In many cases, manufacturer warranties for major systems and materials require regular inspections. Skipping an annual inspection could put your insurance coverage at risk. Taking proactive steps to identify and mitigate risk can help reduce insurance premiums as well.
Not only do annual inspections comply with manufacturer warranties and insurance providers but they ensure community members are in compliance with HOA rules and regulations. A well-maintained community promotes curb appeal, increasing property value and attracting potential buyers.
Responsibility Parties
The people responsible for ensuring annual inspections and annual budget allocation may vary based on the community. It could be HOA board officers, HOA community managers, or a third-party service that conducts the annual inspection and reports the findings to the board or community. Conducting inspections helps to prioritize the annual budget.
Prioritization Protects Budgets Annual inspections often reveal a wide range of needs,from simple fixes like rusted railings, pavement potholes, or burnt-out lights, to more significant concerns such as structural issues, roof leaks, deteriorating siding, or damaged windows and doors. Because not every project can be completed at once, it’s important to create a phased, multi-year maintenance plan. This approach ensures urgent safety issues are addressed first while allowing larger improvements to be scheduled and budgeted over time. By also setting aside funds for routine and emergency repairs, boards can minimize unexpected reallocations and keep the community both safe and well maintained throughout the year.
Building Safer, Stronger Communities Not all states require annual HOA inspections including Colorado. However, HOAs in Colorado must register with the Colorado Division of Real Estate and file a periodic report with the Colorado Secretary of State. While state law does not yet require every HOA to conduct a reserve study on a fixed schedule, commissioning a study at lease every five years is considered best practice and is strongly recommended to ensure long term financial health.
Annual inspections and preventative maintenance aren’t just about protecting physical assets; they’re about creating safe, welcoming spaces for every resident, from children at the playground to seniors walking pathways at night. By prioritizing and planning ahead, HOA boards and managers can keep their communities thriving while staying within budget.
About the Author
Mike Wachtel brings over fourteen years of experience managing complex building envelope projects across multi-family, commercial, and historic properties. With a degree in Architecture and a national Class B contractor license, Mike combines technical expertise and hands-on experience to deliver safe, high-quality, and budget-conscious solutions for the communities he serves.
By Devin Pozzi
Working at the intersection of health, wellness, and community, I’ve seen firsthand the value of integrating contemplative practices into modern life. Through my work with for-profit organizations, nonprofits, and the people who live and/or work within them, I emphasize that genuine connection and meaningful collaboration are essential to building a strong, resilient foundation.
For the past few years, I have observed a quiet but powerful shift taking place within homeowners associations (HOAs) across the country. It’s a shift that reflects a growing desire for more connected and wellness oriented communities.
Let’s face it - the primary focus of HOA leadership, as far as I understood it, has been on rules enforcement, maintenance, and compliance. But today, communities seem to be asking for something more. Homeowners are no longer content with simply living in neighborhoods that are well maintained,they want to live in neighborhoods that are well lived.
This is where future-focused community visioning comes in and it’s a critical evolution.
Beyond the Bylaws: Building a Shared Vision
A community without a vision is like a home without a foundation. You can repair cracks and paint walls, but the structure won’t stand up over time without a real solution.
What we’re seeing, and encouraging, is a movement toward proactive, values driven leadership in HOAs. It’s about guiding your neighborhood, not just by taking care of the exterior. It’s about taking care of the people that call it home.
Trends to Consider:
1. Strategic Planning
More HOA boards are stepping away from relying purely on their monthly checklists and are engaging in facilitated strategic planning. These sessions create a space to ask deeper questions:
These aren’t just visionary exercises - they’re investments in long term sustainability, stability, and satisfaction.
2. Community-Driven Planning
The best visions are not crafted in a boardroom, by the board alone. Instead, they’re co-created with homeowners.
Surveys, focus groups - these aren’t just things to do to say you’ve done it. They’re tools that empower people to have a voice. In our experience, when homeowners feel seen, heard, and actually valued, they show up differently. They take pride. They contribute. They get involved.
We’ve seen communities where even one listening session, so long as there is a neutral party to help facilitate, sparks new energy and engagement among neighbors who previously felt disconnected. Keep in mind, this is different than a board meeting. It’s facilitated planning with the purpose of connection and true collaboration.
3. Adopting Vision Statements with Heart
We encourage communities to adopt formal vision statements that go beyond landscaping standards or parking policies. These statements reflect who the community wants to be:
Vision statements become guide posts, helping to inform design decisions, budget priorities, and amenity upgrades. These statements can even guide the tone of communication from the board. You don’t have to give up fiscal responsibility to care about the lives that live in the community.
From My Perspective: Why This Matters
When we take the time to plan with purpose, we don’t just improve infrastructure within the community, we improve lives.
A visioning process invites connection. It inspires alignment. It encourages healthier interactions, both socially and structurally. It’s the first step toward building neighborhoods that support mental well-being AND physical vitality, the foundations of any thriving community.
A Call to HOA Leaders and Community Managers
You are not just stewards of bylaws. You are culture creators.
Future focused community visioning shouldn’t be an exception to the rule. In my opinion, it’s a necessity in a time where expectations are higher and life seems to be more complex. But the good news is: you don’t have to figure it out alone. Facilitators can help to guide these conversations. To help boards listen. To bridge the gap between governance and community life.
Let’s Redefine What HOA Leadership Looks Like
I truly believe that the HOAs that will thrive are the ones that look beyond maintenance and enforcement, and also ask:
“What kind of life do we want to create here?”
Let’s start there. Let’s build from vision.
Devin Pozzi is a meditation teacher and health and wellness coach dedicated to bridging the worlds of deep contemplative practice and modern professional life. His approach is informed by a rich and varied contemplative background, shaped by immersive practice and rigorous study in monasteries across Nepal, India, France, and the United States. Devin's mission is to bring the value based practices into the task-centric professional world. He empowers individuals and teams to move beyond burnout and cultivate a life of greater wellness, meaning, and purposeful service.
By Scott Magyar, Associa
The story of homeowners’ associations (HOAs) in Colorado begins with a national movement toward planned communities that started in the 1940s. One of the first and most influential examples was Levittown, built on 4,000 acres of Long Island, New York, to provide housing for returning World War II veterans. While Levittown didn’t have a formal HOA with a board of directors, it did establish community rules and standards — laying the foundation for the modern HOA.
Inspired by developments like Levittown, Colorado saw its own early experiment in cooperative housing. In 1948, a group of university professors formed the Mile High Housing Association (MHHA), creating the state’s first single-family housing cooperative.
The Federal Highway Act of 1956 helped fuel this growth even further by making more areas accessible for development. Then in 1960 the creation of the National Association of Housing Cooperatives (NAHC) gave these new communities more structure and support, paving the way for today’s formal homeowners’ associations.
A major turning point came in 1963, when the Federal Housing Administration (FHA) began approving mortgage insurance only for homes and condominiums in communities managed by HOAs. This policy quickly made HOA-style neighborhoods more common, as they offered shared amenities, consistent upkeep, and higher property values.
As communities became larger and more complex, volunteer HOA boards often struggled to handle day-to-day operations. This created a need for professional management companies to assist with finances, maintenance, and rule enforcement — a trend that took off in the 1970s.
Today, the Community Association Institute (CAI) estimates there are over 370,000 HOAs across the United States managing more than 40 million homes. In Colorado alone, there are nearly 12,000 HOAs, and about 42% of Coloradans live in HOA-governed communities — the second-highest rate in the nation after Florida.
Colorado’s HOAs operate under the 1990 Common Interest Ownership Act (CCIOA), which defines the rights and responsibilities of both homeowners and associations. This law is designed to ensure transparency, fair communication, and proper dispute resolution, helping Colorado earn a reputation as a homeowner-friendly state.
HOAs have also become an important part of Colorado’s economy. By maintaining neighborhood standards and shared spaces, they help boost property values — with HOA homes valued about 4% higher on average than those outside of associations. Since many new housing developments are HOA-managed, this activity supports Colorado’s real estate industry, a major source of jobs and economic growth.
Looking ahead, HOAs are continuing to evolve. New communities are being formed every year — an estimated 5,000 annually across the U.S. — and the HOA model is expanding into retirement communities, timeshares, and mixed-use developments that blend homes, shops, and cultural spaces.
From Levittown to modern-day Colorado, HOAs have become a defining feature of community life — shaping how neighborhoods grow, how homes are maintained, and how people connect with one another.
Scott Magyar - President, Associa – Colorado Association Services. Scott Magyar grew up in Carbondale. After spending his college, consulting, and several industry years in Texas, Scott has come home to Colorado as President of Associa - Colorado Association Services.
By Natalie Tuccio, Kennedy Richter Construction
When a homeowners’ association learns that major repairs are needed—whether it’s siding, deck or roof replacements, or structural or drainage corrections—the instinct is often to “get bids.” It sounds logical: gather a few numbers, compare prices, and pick the most reasonable one. But for large, complex community repair projects, that approach can lead to frustration, change orders, and unplanned costs once construction begins.
There’s a better path: preconstruction. Preconstruction is a collaborative planning phase where a contractor and engineer work together—alongside the HOA board and community manager—to develop a fully defined, realistic, and constructible project plan before anyone breaks ground. It bridges the gap between design, budget, and execution—ensuring that the final plan is financially sound and practically achievable.
Why Projects Benefit from Preconstruction Before Bidding
When a set of design documents is created and immediately sent out for bid, boards often discover that costs come in higher than expected or that contractors make different assumptions about how the work will be performed. This doesn’t mean the plans were wrong—only that additional coordination and cost validation are needed to align the design with the realities of today’s market conditions and construction logistics.
That’s where Preconstruction comes in. It’s a proactive phase that brings the engineer and contractor to the same table early, ensuring every detail—from material selection to site access—is understood and optimized before pricing is finalized. The goal is to make bidding more accurate, not more complicated.
What Happens During Preconstruction
In a Preconstruction partnership, the engineer leads the technical design—identifying scope, specifications, and code requirements—while the contractor contributes constructability insight, current market pricing, and phasing logistics. Together, they collaborate with the HOA to answer key questions before the project ever goes to bid:
By answering these questions collaboratively, boards gain a transparent, data-driven roadmap for success. The result is a design that’s both technically sound and financially attainable—before the first bid ever goes out.
Tangible Benefits to HOAs
A True Partnership Between Design and Construction
The most successful communities view Preconstruction as an investment in collaboration, not an added cost. Engineers bring the design expertise; contractors bring practical field knowledge. Together, they create a plan that is not only code-compliant and technically correct, but also efficient, safe, and financially viable.
When both disciplines collaborate early, boards benefit from a unified team focused on one goal: delivering a high-quality, well-planned repair project that protects the association’s investment and minimizes resident disruption.
For today’s HOAs, preconstruction isn’t an extra step—it’s the step that makes everything else work.
With more than a decade of experience serving Colorado HOAs, Natalie Tuccio is a seasoned expert in assisting HOAs with their construction projects. As the Director of Business Development at Kennedy Richter Construction, an owner-operated firm, she is dedicated to helping communities plan and execute projects that align with their specific needs and budgets. Kennedy Richter Construction is recognized as the leading contractor for HOAs, specializing in preconstruction, construction defect repair, intrusive testing, and building envelope restoration. KRC approaches each project with a blend of creativity, expertise, and a deep understanding of the unique challenges presented by occupied spaces such as HOAs.
By Tressa Bishop, Alliant Insurance Services
As condominium and townhome community boards of directors continue to feel significant pressure to reduce the insurance line item in their budgets, changing who is responsible for insuring the residential buildings is becoming a more prevalent solution.
Can We Do This?
After consulting with the association’s legal counsel to verify whether this type of change is allowed (by statute as well as the community’s governing documents), the process can take anywhere from a few weeks (Board Resolution) to several months or longer (Declaration Amendment).
The timing of switching from insuring the buildings on the association’s master insurance policy to requiring each owner to insure their unit as a single-family home to include their portion of the exterior of the building is important to consider. In addition to mortgage company notification requirements as outlined in the Declaration, Boards should allow ample time for each owner to secure an appropriate insurance policy to ensure they are properly covered.
Ch-Ch-Ch-Ch-Changes
Change seems to be constant in the insurance industry, including personal lines insurance. There are carriers that decline to quote single-family homeowners policies for units that are attached to other units. Their rationale ranges from issues with the ownership structure of the buildings to the increased chance of liability claims from neighbors who share the party-wall(s). Some carriers require not only the insurance responsibility be shifted to the owners, but also the maintenance responsibilities. On the association’s insurance front, carrier ratings differ for associations that retain maintenance responsibilities for the buildings they no longer insure.
Insurance, Maintenance, and Reserves
Confusion frequently arises when owners are responsible for insuring the building exteriors and roofs, but not maintaining them. If a hailstorm damages the roof, the owner’s insurance would be used to repair or replace it. What happens when two-thirds of owners replace their roofs following the hailstorm using funds from their insurance carrier but one-third does not, either due to their carriers denying the claim or their refusal to file a claim because they aren’t experiencing any leaks nor visible damage from ground level?
Since the association is still required to maintain the roofs, the regular monthly or quarterly assessments will continue to include collecting funds the for the eventual roof replacement as part of their reserve plan for the general common elements. If a change is made to the insurance and maintenance responsibility, what happens to the reserve funds previously earmarked for roof replacement? Thinking through those potential situations and challenges will be important prior to enacting any change to the insurance and maintenance responsibility.
Is It Always Less Expensive to Change the Insurance Responsibility?
The answer is one that you frequently get from well-meaning insurance professionals: It depends.
The total cost of insurance for each owner will vary significantly following a change to the insurance responsibility. Some owners will end up paying less than when the association insured the buildings and others will end up paying more. Some owners will have an easy time switching the type of homeowners policy with their current carrier and others will have to move to another carrier, oftentimes requesting quotes from multiple carriers before finding appropriate coverage that they deem affordable.
Consult Industry Experts and Use Available Resources
As always, any time there is a major change such as this, it is imperative to consult industry experts including your HOA attorney, specialized insurance professionals, management company resources, and other peers in the community association space. CAI’s online forum is a fantastic resource where homeowner leaders and managers can ask questions of others in the industry who have gone through similar decision points in the life of their community. Thinking longer term about the financial impacts of changing the insurance and maintenance responsibility is critical to fulfilling your fiduciary duty for the community.
Tressa Bishop, Senior Vice President at Alliant Insurance Services, is a CAI Educated Business Partner, and is one of just under 130 insurance brokers (as of this publication date) to hold the Community Insurance and Risk Management Specialist (CIRMS) designation through CAI. Tressa enjoys working closely with board members and managers to ensure a high-quality risk management program is in place for their communities. Her ability to communicate effectively and negotiate aggressively for coverage has allowed her to positively impact the communities she serves following loss.
By Jason Ryan, WestWork Management
Does the thought of a calm and productive Monday morning feel like a reality? For many community managers, board members and business owners the answer is a resounding no. Sifting through endless emails, tackling urgent issues, preparing for meetings, and juggling a whirlwind of daily tasks can leave anyone exhausted. A 2024 CAI survey revealed that 40% of a community manager’s week—two full days—is consumed by administrative tasks. This relentless workload drains the energy needed for what truly matters: being human. Our humanity is our greatest asset, and it should be the cornerstone of every organization. This challenge isn’t unique to community management—it’s a universal business and interpersonal issue.
So, how do we combat a dehumanized work environment? Surprisingly, the solution lies in embracing more technology, but used wisely. While AI burnout is real, technology’s true potential shines when it frees up time for meaningful human connection. Imagine a world where digital tools handle repetitive, time-consuming tasks, allowing you to focus on your strengths: building relationships, resolving conflicts with empathy, and engaging with residents, board members, colleagues, and even your family. By leveraging technology, we can restore humanity to our industry and unlock new paths to success.
After returning from a recent industry conference brimming with inspiration, I was determined to transform my company and our industry with smarter tools. While many of us rely on industry-standard accounting software with AI add-ons or management platforms, no single tool can do it all. To thrive in 2025 and beyond, we must explore emerging technologies and identify gaps in our current processes that innovative solutions can fill.
Fortunately, 2025’s technological landscape offers a range of smart assistants, moving far beyond outdated, clunky tools. Two standout additions to my workflow—monday.com and Grok by xAI—have proven transformative when used effectively.
The best use of an organizational tool like monday.com varies depending on your needs, but its user-friendly drag-and-drop boards turn chaotic to-do lists into clear and actionable plans. Whether you’re tracking budget approvals, scheduling snow removal, managing insurance renewals, or onboarding new clients, monday.com’s customizable templates streamline the process while syncing teams and boards in real time. Gone are the days of relying on scattered Excel spreadsheets, Outlook calendars, or handwritten checklists. This budget season, our managers are using the time saved to pick up the phone and discuss plans and goals with board members—imagine the impact of those conversations!
Then there’s Grok, xAI’s innovative tool that might just outshine Google—and sometimes even my own memory. Try asking Grok or a similar AI like ChatGPT to retrieve budget requirements for pre-CCIOA communities or notice requirements for board meetings. You may know the basics, but can you pinpoint the exact legal section or related requirements with sources in seconds? Grok can. By making critical information instantly accessible, Grok clears the mental fog, freeing up bandwidth for a quick call to a resident or a lunch meeting with a teammate. As it turns out, giving yourself time to decompress reduces burnout, as mundane micro-tasks are offloaded to your AI assistant.
Let’s be realistic—adopting new technology isn’t without challenges. Privacy concerns, tech-resistant colleagues or residents, and the hassle of logging into yet another system can feel like barriers. The key is to start small. Begin by using an organizational tool like monday.com to manage your association’s calendar. Ask Grok to locate a licensed chimney inspector or clarify a regulation. Through gradual steps and a commitment to growth, you’ll discover the perfect combination of tools that quiets the noise and lets you return to being the proactive professional you are at heart.
It’s time to break free from the grind and burnout. These tools aren’t here to replace you—they’re here to empower you. Authentic customer service and genuine human interaction cannot be replicated by machines. To stand out in a tech-driven world, use the time saved to answer your phone with a smile, engage in meaningful conversations, and reclaim your humanity. Technology, when harnessed thoughtfully, becomes the key to unlocking your potential and transforming the way we work.
Jason Ryan, co-owner of WestWork Management, leads a premier community association management firm serving Colorado's Front Range. Specializing in townhomes and HOAs, he combines innovative technology with personalized service to enhance community living. WestWork is celebrating its 10th year as champions for excellence in association management.
By Lee Freedman, VF Law
Alternative Dispute Resolution (“ADR”) has been a moving target for various disputes over the years. In the community association industry, it is no different. On May 7, 2025, the Colorado legislative session ended. ADR in the community association industry was a focus during this recent legislative session through House Bill 25-1123, a bill that ultimately died at the end of the session. HB25-1123 fell short of providing a fair and amicable dispute resolution mechanism that would not impact the affordability of home ownership in common interest communities. Future legislation in this area should be well focused on not duplicating prior legal issues, ensure ADR applies to actual legal disputes, and focused on maintaining the affordability of residences in common interest communities.
The Community Association Institute (“CAI”) describes itself as “an international membership organization dedicated to advancing excellence in the governance, management, and quality of life of community associations.” CAI, through its local legislative action committee in Colorado, supported sensible amendments to HB25-1123 which would provide a reasonable dispute resolution approach to community association disputes without unreasonable expense to community associations, and ultimately, all of the owners within such common interest communities.
Such a position is consistent with CAI’s recently adopted ADR policy, which states, “CAI recognizes the need for and supports the use of fair alternative dispute resolution mechanisms to resolve disputes arising in community associations, particularly in appropriate cases where such measures can facilitate efficient and equitable resolution.”
Unfortunately, after a multitude of unsuccessful attempts by numerous groups and the bill sponsors to amend HB25-1125, it was postponed indefinitely in the Colorado Senate committee.
ADR can be used to facilitate face-to-face discussions in situations where, for example, an owner does not understand their obligations under the governing documents in a community or the association's board does not acknowledge or understand the owner’s concerns. There is a saying that the best settlement is one where neither party wins. This means that the goal of negotiations and mediation is to have both sides give up something to reach a fair resolution.
Most disputes in the common interest communities are between neighbors. Board members are normally owners elected to the association’s board. These disputing parties must continue to live together within the community. The hope in these settlement negotiations is to work towards maintaining the communal nature of the community and limiting the number of similar disputes that may arise in the future.
Historically, it was thought that arbitration was a less expensive and quicker method to have a legal case heard by a finder-of-fact. However, that is not always the case. Especially in community association disputes, arbitration can take as long to get to the arbitration hearing as a court case can get to trial.
During this past legislative session in Colorado when HB25-1123 was introduced, the initial goal was to require “a dispute between a unit owner and a unit owners’ association to go through an internal dispute resolution process before the parties can file a complaint with the court. If the parties are unable to reach a mediation agreement, the bill allows the parties to undergo arbitration or commence a legal proceeding.”
The last version of the ADR procedure submitted for approval under HB25-1123 would have cost community associations, and, in turn, owners a substantial amount of money and negatively impact the affordability of homes in common interest communities. It placed few restrictions on the types of disputes that a party could seek mediation, encouraged disparate treatment of the various owners, favored non-compliant owners over compliant owners, and would have created situations that left compliant owners to have to cover most of the expense caused by non-compliant owners.
Without limiting the type of disputes that could be raised, any “dispute” an owner in a community could raise would require the board members to not only take time out of their private schedule to participate in a meeting with each disputing owner, but it would require an association board to consult with their attorney to determine if the dispute is a legal issue, what are the association’s legal duties, and to what resolution, if any, can the association legally agree.
Allowing an unlimited number and type of disputes to be presented to an association would have resulted in an enormous expense for most associations. Community associations are nonprofit corporations that do not operate from any funds they make from selling something. They operate only from funds received from assessments levied against the units within the community based on an annual budget. The amount and type of services an association provides are based on the governing documents and requirements under the law.
If the expenses for an association increase because it has to participate in some kind of ADR for each and every kind of dispute that could exist in the community, the association either has to cut the services it provides to or for the benefit of the owners or it has to increase the assessments levied against each unit, which impacts the affordability of living in a community association or the fair market values of the units within the community.
An ADR bill like HB25-1123 must be drafted carefully to properly balance the need for covenant compliance, proper governance, and affordability and protection of the homes in the community. HB25-1123 failed to pass and did not become law for a number of varying reasons. It did not contain the right balance for the best interests of both associations and owners alike.
C.R.S. § 38-33.3-209.5 requires community associations to adopt responsible governance policies, including “[p]rocedures for addressing disputes arising between the association and unit owners.”
Requiring arbitration of all such disputes, though, does not benefit owners or associations alike. Requiring them to pay the high costs for arbitration is cost-prohibitive to both parties and would result in increasing assessments in community associations at the expense of services an association can provide.
One proposal gained steam this past legislative session among a number of different stakeholder groups for a post-filing mediation and negotiations procedure for certain disputes between an owner and an association.
C.R.C.P. 11 helps limit the number of frivolous claims that can be asserted in a court of law in Colorado by requiring attorneys of parties to sign every complaint affirming that, among other things, the attorney has a reasonable and good faith belief that the complaint (or other pleading) is well grounded in fact and law and is not presented for an improper purpose. This helps limit the filing of frivolous or groundless complaints.
The expense for filing litigation also helps assure that most filed lawsuits have a true legal basis that a court has authority to resolve. If mediation is required pre-filing, associations would again face the consequences of having to incur the substantial cost associated with having to participate in mediation for issues that do not have legal sufficiency.
Post-filing mediation would require the court to immediately keep the case while the parties participate in mediation. If a resolution occurs, the case will be dismissed. Costs would be limited at that point to mediation unless mediation failed to result in a resolution.
Initial amendments approved by the Colorado House on HB25-1123 excluded the following types of disputes from the ADR process, among others: disputes involving violation of law; claims of discrimination, harassment, or other civil rights violations; emergency or injunctive relief; those which have already been adjudicated in court or through arbitration, and those which involve collection of past-due assessments claimed by an association. These exclusions are fair and will help maintain the affordability in community associations.
It is expected that new legislation will be introduced during the next legislative session in Colorado seeking to create a fair mechanism for dispute resolution of association and owner disputes.
The search continues for the holy grail of legislation in Colorado for fair ADR mechanisms to resolve disputes arising in community associations, but the parameters for such a mechanism exist. We will see where this next legislative session leads us.
Lee Freedman is of counsel in VF Law’s Colorado office. He may be reached at Lee.Freedman@vf-law.com.
