Fee Disclosure Bill Introduced
Written by: David Firmin on Tuesday, February, 4th, 2014
The long awaited bill relating to fees charged by managers was introduced today in the Form of HB 14-1254 by Representative Labuda. It is co-sponsored by Senator Balmer in the Senate. While this bill was much anticipated, as introduced, the bill does not cap or place restrictions on transfer fees. Instead, the bill requires that during negotiations, and then every year thereafter, the management company fully disclose “all fees and charges that the manager will bill to the HOA for services performed by those employees or subcontractors.”
The bill also provides that failure to truthfully disclose all fees and charges could result in a fine being levied against the management company in an amount not to exceed Two Thousand Five Hundred Dollars ($2,500). Fines would be imposed by the Director of the Division of Real Estate and hearings would be conducted in accordance with the State Administrative Procedures. While not quite the anticipated bill, HB 14-1254, as introduced, will provide additional transparency to owners buying into communities.