HB 14-1254 Transfer Fee Bill Moves to Senate
Written by: David Firmin on Wednesday, February, 26th, 2014
The Colorado Transfer fee bill has passed out of the House of Representatives and moved to the Senate un-amended. As drafted, HB 14-1254 mandates that a manager and any management company disclose to the executive board of each HOA for which it provides or offers to provide services, during contract negotiations and thereafter on an annual basis, all fees and other amounts that the manager charges or will charge to the common interest community, unit owners, and purchasers of units in the common interest community for or as a result of any service, product, transaction, or item of value provided by the manager, any employee or contractor of the manager, or another individual or entity with whom the manager associates in the performance of community association management services.
The bill, as passed by the House also mandates that the manager disclose all remuneration the manager or any subsidiary, affiliate, or related person or entity receives or will receive, directly or indirectly, in connection with its relationship with the common interest community. Fees must be disclosed during both the negotiation of the contract and on an annual basis thereafter as well as any other remuneration or fees received by the management company related on an annual basis but does not set a limitation or cap on what fees may be charged.
While not the original transfer fee bill that was rumored to be originally considered, this bill appears to reflect the hard work of stake holders to draft legislation that provides transparency to owners within common interest communities.