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Taking A Closer Look At Mirasol
5 Questions
Below is a list of questions that need to be answered concerning the Mirasol Community Association Inc. I have suggested some
possible answers to the many unanswered questions.

1.  What residents of this Community are member of the HOA? Do the members have any rights?

Below are sections copied from the (Master Plan for Mirasol) as filed with the City of Loveland Planning Commission.
    c. Formation of Homeowners Association/Architectural Control Board
The entire Mirasol Community will be governed by a Homeowners Association representing each resident in the community
           b. Covenants
            Covenants, Restrictions, and Declarations will be created to provide governance for the Homeowners Association and  
ensure standards for development and maintenance

This provision was never entirely implemented. The only residents who are members of the HOA are those who have purchased
a building lot or house. There is only one class of membership- it is only owners. The balance of the residents are only obligated
by the (
SECRET UNDISCLOSED COVENANTS) that pertain to the membership in the Events Center.

2.  Do the members of the Mirasol Community Association (MCA) have any rights?

In the case of “Mirasol” the Articles of incorporation state that the corporation will not have any voting members. This means that
people who purchase a home in “Mirasol” will never be given any vote or choice in how this community is managed. The Housing
Authority will have complete control in perpetuity

Few people would want to purchase property or a home in any (HOA Community) and invest their life savings knowing they
would never have any rights or voice in its Management especially when this information was not disclosed as required by the
Colorado Common Interest Ownership Act (CCIOA).

3.  Is the Mirasol Community Association Inc. (The HOA) regulated by any Colorado Laws and are
they in compliance with those laws?

Below is the first page of the ByLaws of Mirasol which states that this (HOA) is operating under (CRNCA) and (CCIOA), the
“Act” the Colorado Common Interest Ownership Act.

These are the Bylaws of the Mirasol Community Association, Inc. (the "Association"), which shall operate under
the Colorado Revised Nonprofit Corporation Act, as amended (the "CRNCA") and the Colorado Common Interest
Ownership Act, as amended (the "Act"). Terms used herein shall have the meaning set forth in that certain
Declaration for Mirasol recorded in the Office of the Clerk and Recorder for the County Larimer, State of Colorado
("Declaration") and in the Act.

4.  What sections of (CCIOA) is the MCA in non-compliance with?

In the Declarations for Mirasol made on May 12, 2006 about 17 months before the first Mirasol sale or lease is signed, we find
the below printed section:

Declarations-page 7 Article 2
Section 2.15 Fiscal and Operational Responsibility. The Board shall adopt a budget which is sufficient to comply
with the Declaration, to fund current and anticipated expenses of the Association, and to ensure that repairs,
maintenance, replacements and improvements (including capital improvements) are made by reputable companies
with expertise in the particular areas. The Board shall also ensure that there are sufficient funds and procedures
available to comply with the disclosure, education and other requirements concerning the management and
operations of the Association pursuant to the Act; as amended in 2005, including, but not limited to, the
establishment of a web site in order to disseminate information to owners as required by the Act.

I am not an attorney and I do not give legal advice. Anyone can look up any part of Colorado Law. I do have complete copies of
all the governing documents recorded for Mirasol and have read them all.

The “ACT” is The Colorado Common Interest Ownership Act or (CCIOA)

The Board members are
Moofie A. Miller, Richard Ekwall, Sharlet Lee

The three Board of Directors are responsible and accountable by (CCIOA) law for the management of the Mirasol Community
Association Inc. along with
Sam Betters who is a partner in Homequest Development LLC.  Because Homequest
Development LLC
is the developer of Mirasol (the Declarant) and the Board members are appointed by the Declarant, the law
states that they are held to the high standard of Trustee.

Moofie A. Miller is the Director of Housing for (HACOL)

Richard Ekwall is the Director of development for (HACOL)

Sharlet Lee is Director of Internal Operations for (HACOL)

None of the above requirements seem to have been met.

It appears that there were not sufficient funds, there was very limited or no disclosure, there was no education of the Board, the
local manager or staff , and no education of the members or residents of this common interest development (HOA) to date.

Below are listed sections of (CCIOA) “the ACT” and the Colorado Revised Statues (CRS) that it appears this (HOA) has not
been and is still not incompliance with many of these requirments.

PROPERTY - REAL AND PERSONAL-Colorado Revised Statues (CRS)

38-35.7-102. Disclosure - common interest community
Read (2) (a) and (2) (b) on page 2

38-33.3-209.4. Public disclosures required - identity of association - agent - manager - contact information.   

38-33.3-317. Association records.  

(2) (a) Except as otherwise provided in paragraph (b) of this subsection (2), all financial and other records shall be
made reasonably available for examination and copying by any unit owner and such owner's authorized agents.  

(b) The power of a court, independently of this article, to compel the production of association records for
examination on proof by a unit owner of proper purpose.  

38-33.3-209.5. Responsible governance policies

38-33.3-209.6. Executive board member education.   

38-33.3-209.7. Owner education.

5.  Is the Events Center a part of the Mirasol HOA? Was the EC created for the exclusive use of the
residents? Who are the real owners of the Events Center? What are the secret covenants?

Mirasol had its first residents in the fall of 2007. When these first and original new home buyers or house and apartment renters
signed their contracts they were all told by local management (while being given a detailed tour of the Events Center) that the
Events Center was their home and its facilities were for the exclusive use of the residents. It was not until mid year 2009 that the
truth about whom actual owns the Events Center and who has first priority to its use and facilities was discovered.

Below is the actual wording recorded in “The Declarations for Mirasol”

Declaration for Mirasol- Article 1-Page 4

1.2.20 Events Center. Certain real property and any improvements and facilities thereon located on Lot 2, Block 4,
Mirasol First Subdivision, recorded on February 15,2006, at Reception No. 20060014474, which facilities are for
recreational and related purposes, on either a club membership basis or otherwise, which includes both the
improvements shown on the Plat as the "Community Center" and "Community Pavilion." The Events Center is
privately owned by an entity other than the Association ("Events Center Owner"). Further, pursuant to the
Reciprocal Covenants, the Association and Owners have certain rights and responsibilities as more particularly
described in Section 3.1 and Subsection 8.2.4 below.

The Events Center is not part of the Mirasol Community (HOA). The wording in the (Declaration) page 4 section 1.2.20 is vague
and ambiguous (“on either a club membership basis or otherwise”).  The home owners and renters were never offered any
Membership choice in joining the Events Center, they were forced by statutory law with the filing of the secret (Covenants) 15
months prior to any signed lease agreement or home purchase and the Reciprocal Covenants were never disclosed to anyone
about their existence and requirements. Nowhere in the governing documents, sales contracts or leases do you see any mention
of different classes or categories of membership being offered on any basis to home owners, home renters or apartment renters.
“Reciprocal Covenants” are Filed on May 12, 2006 with Larimer County Clerk.  This date is about 17 months before the first
resident will move into Mirasol.

Page 1 of the “Reciprocal Covenants” reads:

The Authority has sold and transferred to LHDC certain property (meaning the EVENTS CENTER located in the
“Mirasol Senior Community.

The “Reciprocal Covenants” are a private agreement between (HACOL) and (LHDC) which state that the (EVENTS
CENTER) is not included in the common property of the Mirasol Community and is owned by (LHDC) and operated for the
sole and exclusive benefit of (HACOL) and not the residence.

The “Reciprocal Covenants” are signed by
Samuel G. Betters for (HACOL) and
Shane West for (LHDC).

Because there are so many question concerning Mirasol its management, its corporate structure it will take more future articles to
answer these questions.  

The Articles of Incorporation filed 9/01/1972 for (LHDC) page 4 Article IV read:

All of the members of the housing Authority of the City of Loveland Colorado shall automatically be members of
this corporation.

It appears that Executive Director Sam Betters of (HACOL) have made covenants with himself to collect monthly dues for the
support of the (EC) as he is a member of both corporations and he also is a partner in the corporation that  is the owner of the

Most of the Homeowners received a copy of these “Reciprocal Covenants” with their closing papers upon the purchase of a
home in Mirasol. The paired home and apartment lessees were never given a copy of the “Reciprocal Covenants” and they were
never told that these documents even existed. How could any normal person trying to make an informed decision to agree or not
to agree to abide by these “Reciprocal Negative Easements” without ever having the opportunity to read them or to get a legal
opinion explaining their true meaning in plain language?

The Mirasol Community Association (MCA) has a (PET POLICY) consisting of four pages that describe in great detail the rules,
regulation and procedures that must followed in applying for a (PET PERMIT).  On the second page section (E)”
Prior to the
issuance of a Pet Permit, applicant agrees to sign a statement that the applicant has read and understands the Pet
Policy and agrees that said Policy shall be incorporated by way of amendment into the lease agreement."

It is absolutely ludicrous for all of the residents who live in Mirasol to try and comprehend how the Mirasol Community
Association (MCA) would have a four page document where the applicant agrees to sign a statement as to having read this
document and also understands and agrees with a policy the involves a $500 per pet, non-refundable pet permit fee and then they
want the residents to believe that everyone who purchases property or signs a rental lease has agreed to be bound by the
“Reciprocal Covenants” that require each of them to pay a monthly “Community Dues” assessment of ($113 each month) or
($1365 per year) or $131 or $151 or $297 per month without anyone ever reading or having a true explanation of these
“Reciprocal Covenants” and without signing a statement that they have read, understand and agree to them. Yet the (MCA)
expects property purchasers to pay upwards to $300k for a home and home renters to commit to a year lease from $13,000 to
$20,000 per year and not have the same opportunity as a resident applying for a pet permit.



Full disclosure is required by Colorado Law (CCIOA)

How can renters of houses and apartments be charged community dues, when they are not members of the HOA Community in
which dues are mandatory by state statues?

How can any resident be charged community dues to pay for a membership in the Events Center?

A very important issue to potential Homeowners, House renters and Apartment renters is the “Community Dues” that is required
to be paid monthly by every unit owner, house renter or apartment renter according to the “Reciprocal Covenants” that were
recorded on February 15,2006.

I will refer to the above as the Secret Covenants as they were never mentioned or discussed by the acting manager at the time
leases were being signed and they are never disclosed in any advertising.

Below please take notice of the very first page of the (12 page lease agreement) that each House and Apartment renter must sign.

Actual wording from an income affordable Mirasol Paired Home Lease:

2. DESCRIPTION OF PREMISES/TERMS: The Manager, in consideration of the rent reserved herein to be paid by
said resident and other covenants, agreements, and conditions hereinafter contained to be kept, performed, and
observed by said resident etc.

4. RENT: Resident agrees to pay to manager the gross rental amount of $919 rent etc.
and $131.00 Community Dues: For a total of $1050 per month

Actual wording from the original first renters of this house:

4. RENT: Resident agrees to pay to manager the gross rental amount of $990 rent etc.
and $ 0 Community Dues.

This same house occupied by the previous renters who vacated the house 2 days prior to the above new renter signing the above
lease. The first original contract was as listed above for $60 per month less. This was a $720 annual rent increase and take note
that the community dues is included in the monthly rent of the first original renters but not in the second renters. After just one
year's time at the next annual renewal in December this rent was scheduled to increase again by an additional $100 per month for
a new total of $1150 per month and the second renters decided to leave Mirasol and not renew at the new rate of $1150.

Since all the unfavorable publicity concerning Mirasol the monthly rental on the above house has been rolled back to $909 rent
plus $131 community dues for a total of $1040 but it was not rolled back to the rent charge to the first senior couple who rented
this same house for $990 with Community dues included.  

In this same lease listed above on page 3 under section 7. Manager promises (f) (g)

To turn community dues to the Mirasol Events Center on a monthly basis to assist with cost of service programming
and staff.

The secret covenants call for a club membership or other basis for the Events Center. The home and apartment lease stipulate
community dues to be paid by the manager to the Events Center.

How can there be community dues in place of a club membership when there was no disclosure? The community manager (is this
the HOA manager also?) who’s office is located in the Event Center and he also happens to be the Events Center manager. Does
he pay himself the Community Dues? This looks like some type of conflict of interest

Is Mirasol a revolving door?

In its first two years of operation Mirasol had become a revolving door with well over 20 residents moving out after only a one
year or lesser stay. They were all enticed by the clever advertising pamphlets with promises of “The Lifestyle You’ve Been
Waiting For and You Deserve”. Each time a senior individual or couple relocates to Mirasol and then decide to leave because it
did not live up to its promises, they go through an expensive and detailed process. They must sell their home or make
arrangements to move from where they are renting, hire movers, cancel utilities, change mail and all other related services to move
to their dream retirement only to have to repeat this whole process one year later. Some of those who purchased over priced
houses have invested their life savings and now are fearful that if they complain and there is continued negative publicity that their
home values will decrease.

Our main concern is for the homeowners, those residents who purchased homes or lots and are included in the Mirasol
Community Association (HOA). After three years since its inception the developer has only sold 11 homes out of a minimum of
31 and has had several of the no income limitation homes vacant (producing no income) for over two years. This developer now
wants to build a second phase consisting only of new apartments. What this means to the (11) HOA members is that they will be
subject to more special assessments just like to most recent one of $948 because of no or limited new home sales and that means
no additional (HOA) paying dues.

If this project was being managed by a private developer instead of the Housing Authority, that developer would be trying to sell
this project or he would be filing for bankruptcy protection.  

Since its beginning the Mirasol project has been under funded. In an article from the Reporter-Herald dated February 14, 2005
the city council is being requested by Sam Betters to waive building permit fees and capitol expansion fees of $660,000 so that
Mirasol Senior Community could be built as affordable housing. His original request was for $1.6 million. Sam Betters is quoted
as saying the first phase of the project will cost about 18 million and there would be a $3 million gap between what Mirasol
would cost to build and how much money Mirasol would generate. “Would we try to do this project if the city didn’t meet our
request? Of course we would” Betters said.

Betters goes on to say “the housing authority will seek money from others sources. We usually end up with five to seven layers of
financing on these things”

It was also mentioned that the city would need to replenish any waived fees with money from the Council Capital Reserve Fund.
Is this fund made up from taxpayers money?

In an article dated March 2, 2005 after getting a unanimous vote from the city council to waive $581,210 in fees. Sam Betters
said he now would have to raise money from others sources and would be about $2.7 million short. This would indicate that the
Mirasol project was underfunded from its inception and that there was no way that they could fulfill their grossly exaggerated
promises of affordable senior housing, activities planned, promised maintenance programs and events but Sam Betters would do
this project anyway.

It is the goal of the residents and former residents to help make “Mirasol” the type of senior community that is advertised in there
brochures and pamphlets.

The City of Loveland is a home rule charter Municipality. This is the purest form of democratic self government that is allowed by
the Colorado State Constitution and the US Constitution.

The creation of the Mirasol Community Association Inc. (HOA), a common Interest Community under the governance of a non-
profit corporation with its Covenants, Conditions, Restrictions and Servitudes (CC&Rs) is the complete opposite type of
governance that the City of Loveland has chosen for itself..

It is common knowledge that these common interest developments were created as “Benevolent Dictatorships”

What is very difficult to understand by the home owners, home renters and apartment renters in the Mirasol Senior Community is
how the City of Loveland could allow the “City of Loveland Housing Authority” (HACOL) to create “Mirasol” as Common
Interest Community in which almost total control and power is placed in the hands of the executive board of directors, appointed
by the “Declarant” and the residents have no voice or say in how the community is managed. It is their money that supports and
pays for the almost all of the community expenses, is this not! ”Taxation without Representation”?
LovelandPolitics Guest
Commentary Policy
Readers are welcome to submit a response or guest
commentary on any current Loveland issues for
publication on this website.
Guest Commentary by Bob Banaszek;
Bob Banaszek is a former resident of
Loveland's Mirasol city subsidized
"affordable" senior housing project.  

Banaszek left the community after
discovering it was anything but affordable.  
Secret covenants, rent spikes for
unsuspecting seniors and an obligatory
monthly fee to pay for a building owned by
Same Betters was too much for Bob.

Now living peacefully in rural Colorado,
Banaszek has been researching Colorado
laws and comparing what he has found to
the less than honorable operation of