Filed Under (Real Estate) on 02-21-2012
By Rachel Brand
The state of Colorado says it will decide by March 3, 2012 whether to recommend that HOA managers, or managers of “common interest community associations,” be licensed and regulated.
If the state supports licensure, a bill will be drafted and presented in the 2012 legislative session.
At least 2 million Coloradans live in covenant controlled communities, according to Colorado’s HOA Information Office and Resource Center.
The sunrise review comes after the office reported it logged 477 complaints in 2011, its first year of operation.
Many complaints concerned boards and/or management companies refusing to release financial information to homeowners. Boards and management companies were also accused of veering from the HOAs’ governing documents.
Because the state’s HOA Information Center lacks investigatory or regulatory power, no complaints were researched or verified.
Who is behind this?
The request for a so-called sunrise review was made to state’s Office of Policy, Research and Regulatory Reform by the Rocky Mountain Chapter of the Community Associations Institute (CAI).
CAI is a non-profit whose members include management companies, homeowner association board members, lawyers and vendors.
HOA manager licensing requirements can take many forms. In Alaska, HOA managers must be licensed real estate brokers. In Illinois, managers must have logged 10 years of experience or taken substantial coursework and also pass a test. In Florida, licensure requirements only apply to managers of communities with 10 or more units or an annual budget of $100,000 or more.
Do you think HOA managers should be licensed?