Community Association Manager Rules Adopted

by Paul Danborn

Yesterday, after months of delay, Colorado’s Department of Regulatory Agencies (DORA) finally adopted Rules regarding the licensing of HOA property managers. The Rules will take effect July 1, 2015 and implement the Community Association Managers Practice Act (which became law in May 2013).

The Rules require persons engaged in two or more of several activities for HOAs to be licensed (including budgeting and accounting, advising the Board or ACC, coordinating the maintenance of common elements, inspecting homes and recording covenant violations, and performing “day-to-day” operations). The license may be obtained by completing a 24-hour educational program and passing a test (or by holding existing certifications through professional organizations such as the Community Association Institute), and passing a criminal background check. Unlicensed property managers lose the ability to have their HOA clients indemnify them for their actions and may be enjoined by the Director from continuing to act as a property manager.

The Rules apply to property managers for all HOAs, including “pre-CCIOA” HOAs (formed prior to July 1, 1992). However, it is less clear if they apply to managers of so-called “voluntary” HOAs (those without specific assessment obligations in their covenants, which may not meet the definition of a “common interest community” under the law).

The Rules are available at DORA’s Division of Real Estate homepage: http://cdn.colorado.gov/cs/Satellite/DORA-DRE/CBON/DORA/1251654069720.