New owners, who have never been members of a community association or homeowners’ association, often have questions on how these associations operate. Colorado community associations are generally non-profit corporations under Colorado law. When you purchase a home, condominium or townhome, within a common interest community or homeowner association, you automatically become a member of the community association as provided in the governing documents. Members are similar to shareholders in a corporation. As a member, you are called upon once a year to attend the annual meeting of the members of the association. Members comprising 20% of the entire membership in the Association are allowed to call a special meeting of the members on any topic or in order to recall the Executive Board or specific Directors.
Usually, the primary business of the annual meeting of the membership is to vote on approving next year’s budget and electing directors to serve on the Executive Board for the Association. The Executive Board, sometimes called the Board of Directors, may adopt and amend management policies and procedures, and direct enforcement of all the governing document provisions for the Association. The Executive Board determines who will serve as the President, Secretary, Treasurer, and other officers on behalf the Association. The Bylaws of the Association usually delineate the authority and responsibilities of the Executive Board and its officers. The Board of Directors will often meet monthly, semi-monthly or quarterly as set forth in the Bylaws. Directors usually have staggered terms so the entire board is not subject to election or re-election in the same year to maintain some continuity in leadership from year to year.
Directors, Officers and Members have important roles and responsibilities to exercise within the Association and on behalf of the community.