Court of Appeals Rules that HOA Lien is not Spurious, Despite Claim that Annexation was Invalid

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The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999.

March 27, 2019
Jesse Howard Witt - The Witt Law Firm

Today, the Colorado Court of appeals reversed a order that had deemed a homeowner association’s lien to be spurious.

The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999. Several years later, the developer repurchased the property through a foreclosure sale. Despite its prior approval of the annexation, the developer refused to pay community maintenance assessments, which prompted the association to record a lien under its covenants and a statutory provision of the Colorado Common Interest Ownership Act (CCIOA).

The parties remained in a standoff until 2016, when the Colorado Supreme Court announced two decisions that adopted a stricter standard for annexing property into communities subject to CCIOA. Relying on this new authority, the developer at Stroh Ranch argued that the 1999 annexation was no longer valid. The district court agreed and declared the association’s lien to be spurious.

Reprinted courtesy of Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law

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