September 21, 2014

HB 13-1277: Creating a Licensing Program for Persons Paid to Manage Common Interest Communities

On March 25, 2013, Rep. Angela Williams and Sen. Morgan Carroll introduced HB 13-1277 – Concerning the Regulation of Persons who Manage the Affairs of Common Interest Communities under the “Colorado Common Interest Ownership Act.” This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Under current law, common interest communities and their unit owners’ associations (HOAs) are not subject to regulation by any state agency. As introduced, the bill requires any person who manages the affairs of a common interest community on behalf of an HOA for compensation, on or after July 1, 2014, to meet minimum qualifications and obtain a license from the director of the division of real estate in the department of regulatory agencies. Licensees are identified as “community association managers.”

The licensing requirement does not apply to persons who perform clerical, ministerial, accounting, or maintenance functions, not requiring substantially specialized knowledge, judgment, or managerial skill, under the supervision of a licensed community manager or directly for an HOA’s governing board. Licensing examinations will be developed and administered by the director of the division of real estate or by a person or entity under contract with the director.

The bill grants the director powers and duties similar to, but less detailed than, the powers and duties of the real estate commission under existing statutes governing the licensing and supervision of real estate brokers. The director is to monitor the operation of the licensing program during its first year and make recommendations for improvements to the general assembly on or before Jan. 1, 2016. The regulatory scheme is also subject to review after five years under the existing sunset law.

On April 11, the Business, Labor, Economic, & Workforce Development Committee amended the bill and sent it to the Appropriations Committee for consideration of the fiscal impact to the state.

On April 17, the Appropriations Committee amended the bill and referred it to the House Committee of the Whole for Second Reading. The Second Reading was laid over.

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