Sec. 22-711. Informed consent of homeowners.
(a) Homeowners are entitled to be kept informed by boards of homeowners' associations of the board's consideration of actions regarding construction defects and to have meaningful input and a right to make a considered judgment and give or withhold informed consent. Accordingly, if a board of a homeowners' association considers or intends to institute an action asserting one or more construction defects, the board must do each of the following:
(1) At least 60 days before filing any action under C.R.S. § 13-20-803.5, the claimant must mail or deliver written notice to each homeowner at the homeowner's last known address.
(2) The notice must be signed by a person other than, and not employed or otherwise affiliated with, the attorney or law firm that represents or will represent the association in the construction defects claim.
(3) The notice required by this section must contain the following information:
a. The nature of the action and the relief sought.
b. The amount of expenses and fees the board anticipates will be incurred, directly or indirectly, in prosecuting the action, including attorney fees, consultant fees, expert witness fees and court costs, whether incurred by the association directly or for which it may be liable if it is not the prevailing party or if it does not proceed with the action.
c. The estimated cost of repairing the construction defect, or if the construction defect is not repaired, the estimated reduction in value of the unit.
d. The estimated impact on the marketability of units that are not the subject of the action, including any impact on the ability of the owners to refinance their property during and after the action.
e. The manner in which the association proposes to fund the cost of the action, including any proposed special assessments or the use of any revenues.
f. The anticipated duration of the action and the likelihood of success.
g. Whether the builder has offered to make any repairs and, if so, whether the builder has made repairs.
h. The steps taken by the builder in accordance with this article to address the alleged construction defect, including any acknowledgement, inspection, election to repair or repairs.
(b) The homeowners' association may not commence the action unless the board obtains the written consent of homeowners holding at least a majority of the total voting rights in the association after giving the notice required by this section. Homeowners may vote either directly or through a written ballot signed by the homeowner. Such consent must be obtained within 60 days after such notice is provided, otherwise the homeowners shall be deemed to have declined to provide their informed consent to such action. (Ord. No. 2015-35, § 1, 9-14-2015)