Manager Licensure-What Does it Really Mean?

Written by: on Wednesday, April, 17th, 2013

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:

  1. be of at least 18 years of age; have obtained a High School Diploma or a equivalent General Education Development Certificate;
  2. submit finger prints to the Colorado Bureau of Investigation so that a criminal history check may be completed;
  3. pay for the criminal history back ground check; and
  4. obtain and hold either a designation as a Certified Manager of Community Associations (CMCA), an Association Management Specialist (AMS), or as a Professional Community Association Manager (PCAM) or any other designation as may be identified by the Directors. 

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:

  1. legal documents and statutes that enable a community association to operate;
  2. the roles and responsibilities of a manager, owners, committees and the executive board;
  3. management ethics for association managers;
  4. steps for developing and enforcing community association rules;
  5. the manager’s role in organizing, assisting and conducting board meetings;
  6. effective collection of assessments;
  7. remedies for delinquent owners (which are changing by separate bill – so stay tuned);
  8. over view of financial statements; (i) characteristics of effective risk management and insurance;
  9. methods for implementing and evaluating a maintenance program;
  10. criteria for deciding whether to use association staff or contract work for work in community;
  11. how to prepare a bid request and key contract provisions;
  12. recruiting and screening of managing personnel;
  13. and of course the basic areas of employment as addressed by federal, state and local law.

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. 

David A. Firmin