This blog is posted to by the Colorado HOA Forum, a Colorado HOA home owner's advocacy organization. The group strives to reform HOA law through legislation. The organizations web site serves as an information portal on HOA issues and its' goals and objectives. [URL="http://www.coloradohoaforum.com"]www.coloradohoaforum.com[/URL]
HB 15-1040, HOA Manager Licensing — relief for small HOA property managers snubbed
Posted 02-12-2015 at 10:57 PM by coloradohoaforum
Who in our legislature stands up for HOA property managers that serve the smallest HOA’s under the new property manager licensing law: not one Colorado legislator, Republican or Democrat, from city or rural area. All were asked to support/amend legislation (HB 15-1040) to right a wrong in the licensing law that unfairly financially burdened the smallest of HOAs and their property managers: all snubbed the request. Even the trade organization for property managers, the Community Association Institute (CAI), would not support licensing fairness for their own members (perhaps because it would reduce the opportunity to sell them their expensive educational requirements material required to gain licensing).
Colorado requires all HOA property managers (aka Community Association Managers (CAM)) to be licensed by July 1, 2015. This includes completing a background check, educational requirements, and testing. The cost is approximately $600 or more. The program is intended to improve the competency and bring accountability to the CAM profession and to mitigate abusive practices that too often have left home owners in financial distress.
HB 15-1040 was originally written to exclude HOA CAMs that serve 200 or less units from licensing. The Bill had very little support and would have left over half of the HOAs in Colorado without a licensed CAM and vulnerable to abuses that the licensing law attempts to correct. The Colorado HOA Forum, working with the Bill’s sponsor and other legislators, submitted changes to this law to accomplish what the original Bill intended to do: provide relief under licensing to the smallest HOAs.
The CAM licensing law imposes a financial burden on small HOA’s and their property managers that should be addressed. Small HOAs generally have low income from HOA dues, often only require a property manager on a part-time basis with duties sporadic and limited in scope. Many property managers in these small HOAs perform duties as secondary income.
Unlike large property management companies the fee schedules for gaining a CAM license can be burdensome to the very smallest HOA CAMs. This includes paying for a background check, applying for a license, paying for educational classes and testing, liability insurance mandates, and the initial and renewal license fee charge. Having the same rate structure and educational requirements for CAMs in the smallest of HOAs who mostly only perform limited services for limited compensation is a financial burden and unreasonable.
The State’s HOA registration process recognized that small HOAs should receive financial relief and thus created special treatment for the smallest HOA’s (why not the same treatment for licensing?).
All HOA CAMs should be licensed, complete educational requirements, and abide by and be accountable under the licensing program. No CAM should be exempt by size of the HOA they serve. However, reasonable implementation of the CAM licensing program warrants changes: 1) A special and reduced fee schedule for Small HOA CAMs serving no more than a total of twenty units in any and all the HOAs they serve and 2) a lesser educational requirements that are more commensurate with the responsibilities of managing a small HOA. The reduced educational requirements would test the CAMs knowledge of the licensing law and State HOA law but not be as comprehensive in addressing other educational requirements.
These changes would not affect the State’s ability to finance the licensing program nor result in any lack of accountability on the part of any CAM regardless of the size of HOA they serve. These changes would not impact the July 1, 2015 licensing implementation deadline. The changes will result in licensing being effective as intended without the unintended burdens on the smallest of HOAs. It can also be expected that without the suggested changes in the law many now performing CAM duties for the smallest of HOAs will simply stop this line of work: another unintended consequence.
What does it take to prompt our legislators to help those who are least able to be heard over the voices of those who are most likely to profit from the licensing program?
Colorado requires all HOA property managers (aka Community Association Managers (CAM)) to be licensed by July 1, 2015. This includes completing a background check, educational requirements, and testing. The cost is approximately $600 or more. The program is intended to improve the competency and bring accountability to the CAM profession and to mitigate abusive practices that too often have left home owners in financial distress.
HB 15-1040 was originally written to exclude HOA CAMs that serve 200 or less units from licensing. The Bill had very little support and would have left over half of the HOAs in Colorado without a licensed CAM and vulnerable to abuses that the licensing law attempts to correct. The Colorado HOA Forum, working with the Bill’s sponsor and other legislators, submitted changes to this law to accomplish what the original Bill intended to do: provide relief under licensing to the smallest HOAs.
The CAM licensing law imposes a financial burden on small HOA’s and their property managers that should be addressed. Small HOAs generally have low income from HOA dues, often only require a property manager on a part-time basis with duties sporadic and limited in scope. Many property managers in these small HOAs perform duties as secondary income.
Unlike large property management companies the fee schedules for gaining a CAM license can be burdensome to the very smallest HOA CAMs. This includes paying for a background check, applying for a license, paying for educational classes and testing, liability insurance mandates, and the initial and renewal license fee charge. Having the same rate structure and educational requirements for CAMs in the smallest of HOAs who mostly only perform limited services for limited compensation is a financial burden and unreasonable.
The State’s HOA registration process recognized that small HOAs should receive financial relief and thus created special treatment for the smallest HOA’s (why not the same treatment for licensing?).
All HOA CAMs should be licensed, complete educational requirements, and abide by and be accountable under the licensing program. No CAM should be exempt by size of the HOA they serve. However, reasonable implementation of the CAM licensing program warrants changes: 1) A special and reduced fee schedule for Small HOA CAMs serving no more than a total of twenty units in any and all the HOAs they serve and 2) a lesser educational requirements that are more commensurate with the responsibilities of managing a small HOA. The reduced educational requirements would test the CAMs knowledge of the licensing law and State HOA law but not be as comprehensive in addressing other educational requirements.
These changes would not affect the State’s ability to finance the licensing program nor result in any lack of accountability on the part of any CAM regardless of the size of HOA they serve. These changes would not impact the July 1, 2015 licensing implementation deadline. The changes will result in licensing being effective as intended without the unintended burdens on the smallest of HOAs. It can also be expected that without the suggested changes in the law many now performing CAM duties for the smallest of HOAs will simply stop this line of work: another unintended consequence.
What does it take to prompt our legislators to help those who are least able to be heard over the voices of those who are most likely to profit from the licensing program?
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