FRISCO, Colo. — Holly Crystal says her homeowners association in Frisco has been in turmoil for years.
Court records show she has fought a long legal battle after she said her four-house HOA granted themselves an easement on her property. Last month, a court of appeals ruled in her favor on that issue.
"I'm horrified to the point where I need to do something," she said. "To date, I'm now over $400,000 in legal fees, and my journey through this process has been horrifying."
Now, she is part of a growing Colorado chorus calling for HOA reform.
State Rep. Naquetta Ricks (D-Aurora) has been fighting to restrict HOA foreclosures and change current laws allowing homes to be sold for a small fraction of their value.
"With this law intact it means that Colorado is basically sanctioning equity theft, and that is something that we need to change here in Colorado," said Ricks.
She served on an HOA task force this year and said the group came up with a list of proposed legislation, such as licensing property managers, a proposal that failed in the past.
"HOAs are almost like third-world dictatorships, where they can do almost anything they want, even flat-out crime," said Patrick Johansen, with HOA Reform Leaders (HRLING), a national HOA reform advocacy group. "So the biggest problem is that there's no enforcement of the laws. The only thing that the homeowners can do is to take them to court. The homeowners have to use their own money and could potentially risk their home, trying to force the HOA board to follow the laws."
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The Community Association Institute, which represents HOA management companies and boards also supports changes to legislation, but their focus is on requiring reserve studies for HOAs.
Meanwhile, Crystal and other HOA groups have launched a grassroots effort, launching a YouTube channel, printing T-shirts, and even organizing a rally at 3 p.m. Sept. 14.
"What I wanted to do is take what I've been through and try to make some good and have a social impact," she said.
