Community associations are generally structured with a real property component, the covenants, and with a corporate component, the association. These components intertwine. The covenants authorize and empower the association, and the association operates the day-to-day functioning of the community under and pursuant to the covenants. The components of two or more distinct communities can be combined through merger or consolidation.

In the past, Colorado recognized a distinction between mergers and consolidations. In a "merger", one association absorbed the other and remained in existence while the other was terminated. In a "consolidation" a new association was created and the two previously existing associations were terminated. However, the Colorado Revised Nonprofit Corporations Act has eliminated this distinction and recognizes only mergers.

Read More