Supreme Court of Colorado

Ryan Ranch Community Association, Inc., Petitioner v. John E. Kelley, Kelly D. Kelley, Rick Zimmerman, and Lora…

September 26, 2016380 P.3d 137

Summary

The court held that annexing property to a common interest community is an exercise of a statutory development right and must comply with the Colorado Common Interest Ownership Act. The purported annexation of the Kelley Lots was invalid because the documents did not reallocate allocated interests among all units and were not properly indexed as required for an amendment to the declaration; the lots therefore were not subject to the community's covenants or assessments. The court affirmed the court of appeals and remanded for further proceedings concerning fees and costs. Justice Coats, specially concurring, agreed with the result but would have more broadly held that the statutory scheme independently forecloses annexation by deed unless the declarant records a complete amendment before or contemporaneously with conveying the lots.