One of the major bills being debated this year, HB13-1277, promises to become as famous in the HOA circles as SB 05-100 and SB 06-89. This bill represents a major change in how community associations are perceived and managed. So what does it mean and what is its impact?
HB1277 establishes a mechanism in which Community Managers and Management companies will need to become licensed in order to manage community associations. The bill has three separate parts, which (i) define what a community manager and community management is, (ii) the requirements to obtain a license and from who, and (iii) what happens if a manager fails to get license or commits an act that warrants revocation of that license. The 28 page bill authorizes the Director of the Division of Real Estate to promulgate rules to enforce the new requirements.
As the first step for most communities and managers is to determine what it takes to apply for a license and actually get it, we will focus first on the requirements for a license. The bill contains several prerequisites that must be met prior to even applying for a license. An applicant must first:
Once you have turned 18, submitted (and paid for) fingerprinting so that a criminal back ground check may be completed, managers may then (and only then) submit to and pass (with a score determined by the Director) the licensure test, which will test core competencies in knowledge relating to:
Only if a manager accomplishes all of the above, obtains insurance in amounts established by the Director, and has not been convicted of a felony in the last 2 years, may the manager identify him or herself as a community association manager and manage communities. If HB 1277 becomes law, managers will have until July 1, 2015 to comply with these requirements. As more information becomes available you will be able to find it here.