Emergency Rules Addressing Provisional and Apprentice Licenses

 

Since House Bill 1343, the manager licensure clean-up bill, has been signed into Law, the Division of Real Estate has published Emergency Rules which relate in part to obtaining a Provisional License and Apprentice License.  Here's what you need to know:

Provisional License:  To be eligible for a Provisional License, a community association manager must:

1.  Submit a set of fingerprints for the purpose of a criminal background check;

2.  Hold a qualifying educational credential as required by the Division of Real Estate;

3.  Have sat for and not successfully passed the required portions of the Community Association Manager Examination; and

4.  Submit an application for a Provisional License. 

For those community association managers who are granted a Provisional License, those licenses will expire on January 31, 2015 and will not be issued after that date.  As a result, if you obtain a Provisional License, it will be important to focus upon retaking and passing the required portions of the Community Association Manager Examination as quickly as possible. 

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Licensure for Managers Employed by Common Interest Communities: Clearing Up the Confusion

There has been a lot of confusion pertaining to the licensure of community association managers who are employed directly by a common interest community in Colorado.  There have also been questions about whether these common interest communities must be licensed.  After obtaining clarification from the Division of Real Estate and reviewing the Emergency Rules which were just published, here's what you need to know:

1.  Common interest communities will not be required to be licensed as an "entity."  In other words, common interest communities will not be required to be licensed as a community association management company with the Division of Real Estate.

2.  Common interest communities will not be required to name a "Designated Manager."

3.  Common interest communities will not be required to purchase errors and omissions insurance ("E&O") to cover the managers which they employ. 

4.  The community association managers who are employed by a common interest community will not be required to purchase their own E&O coverage.

It is important to note that this posting only refers to managers who are hired as an employee of a common interest community.  This blog posting does not apply to community association managers who provide management services to common interest communities as an independent contractor or as the employee of a management company.

 

 

 

 

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Manager Licensure Clean-Up Bill Signed Into Law!

It's official - Governor Hickenlooper has signed House Bill 1343 ("HB 1343") into law!  Now that this important manager licensure clean-up bill has been signed into law, we expect the Colorado Division of Real Estate to immediately publish emergency rules addressing the requirements and procedures which managers must follow to obtain the Apprentice License and Provisional License.  When the emergency rules are published, we will pass that information along to you.  In the meantime, since the provisions of HB 1343 immediately became effective, here is what managers need to know about the clean-up bill: 

●          The bill clears up who is required to be licensed as a Community Association Manager (“CAM”) and who is not required to be licensed

●          CEOs of management companies who do not engage in community association management and are not the Designated Manager for their companies, are not required to be licensed as CAMs.

●          An employee of a management company, working under the supervision of a licensed CAM, is not required to be licensed if that employee performs clerical, ministerial, accounting or maintenance functions.

●          An employee of a common interest community who only performs clerical, ministerial, accounting or maintenance functions is not required to be licensed as a CAM.

●          An independent contractor who only performs clerical, ministerial, accounting or maintenance functions, and who does not perform community association management functions, is not required to be licensed.

●          An individual holding an Apprentice License and who is working under the direct supervision of a CAM, is not required to be licensed as a CAM during the period of time their Apprentice License is in effect (1 year). 

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Manager Licensure Exam Pass Rate - It's Not All Doom and Gloom!

On Sunday, the Denver Post ran an article indicating that community association managers are struggling with passing the manager licensure exam and some representatives of Community Associations Institute ("CAI") feel the test may not be well written.  While the overall pass rate for both portions of the exam was accurately reported and is absolutely respectable, here's the good news for community association managers:

As of yesterday, for managers holding the Certified Manager of Community Association credential (the "CMCA") from the Community Association Managers International Certification Board ("CAMICB"), the Association Management Specialist designation ("AMS") from CAI, or the Professional Community Association Manager designation ("PCAM") from CAI - the pass rate for the general portion of the licensure exam was 94%.  This 94% is compared with the overall 83% pass rate for the general portion of exam.

For those managers holding the CMCA credential, AMS designation or PCAM designation - the pass rate for the Colorado law portion of the exam was 88%.  This 88% is compared with the overall 76% pass rate for the Colorado law portion of the exam.

To be clear, CAI had no hand in writing the manager licensure exam for Colorado and these statistics are just a snapshot in time.  However, for those managers holding these certifications and designations, the pass rates thus far show that they will be well positioned to take and pass the exam. 

It's also important to note that HB 1343, the manager licensure clean-up bill, is expected to be signed into law as early as this week.  The bill provides in part that those managers who have not yet taken the licensure exam and hold their CMCA, AMS or PCAM, will only be required to take and pass the Colorado law portion of the licensure exam.  HB 1343 also provides the Director of the Division of Real Estate with the authority to grant a provisional license through the end of year to those managers who have taken and not passed the exam.  Here's a handout I created for CAI's Spring Showcase which will tell you what you need to know about the manager licensure clean-up bill. 

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Whose Ox is Being Gored? Construction Defects Legislation in Colorado

Now that S.B. 177 has been killed, it might be useful to talk about what our concerns were with its provisions. We don't disagree that the process of resolving construction defect claims needs to be corrected. What we oppose is the resolution on the backs of consumer home buyers by effectively taking away their rights to some recourse in the event they suffer from significant defects in the design or construction of their homes.

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HOA Bills Dropping Like Flies in Final Days of Legislative Session

The 2015 legislative session of the Colorado General Assembly ends today.  In the final few days, the following HOA-related bills were killed in the Senate:

House Bill 1259:  HB 1259 would have prevented HOAs from prohibiting members from installing rain barrels on property they own in their associations.  This bill sailed through the House, but met with controversy in the Senate.  As a result, the bill was laid over until the day after the session is slated to end.  What does that mean?  It means the bill is dead for this session.

House Bill 1362:  HB 1362 would have required that pre-CCIOA communities (HOAs created before July 1, 1992) comply with the budget ratification provision of CCIOA.  This bill made it through the House without problems and died in the Senate Committee on State, Veterans & Military Affairs - commonly referred to as the Senate "kill committee." 

House Bill 1376:  HB 1376 would have expanded the authority of the HOA Information Officer to prepare and post a referral list for HOA mediators and HOA election monitors and to collect related information.  The bill also would have permitted the Division of Real Estate to promulgate rules changing the fee structure to fund the HOA Information Office to a single per-unit annual registration fee, a tiered per-unit annual registration fee or to a single per-association annual registration fee.  HB 1376 made it through the House and was also killed by the Senate Committee on State, Veterans & Military Affairs. 

As a reminder, earlier in the session, SB 91 and SB 177 were killed in the House.  Both of these bills would have destroyed the rights of homeowners to hold builders fully responsible for their defective construction.

With the passage of the manager licensure clean-up bill and these other bills going down, CAI's Colorado Legislative Action Committee had an extremely successful legislative session.  Well done CLAC! 

 

 

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Manager Licensure Clean-Up Bill Headed to the Governor!

Senate amendments to House Bill 1343 ("HB 1343") were given the thumbs-up yesterday by the House and the bill is now headed to Governor Hickenlooper to be signed into law.  In a legislative session that was highlighted by partisan politics, HB 1343 had bipartisan unanimous approval through every step of the process.  That's a truly astounding success story!

HB 1343 will immediately become effective as soon as the Governor signs the bill into law.  Here's what you need to know about HB 1343: 

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Manager Licensure Bill Clears Senate Business Committee

HB 1343 just cleared the Senate Business, Labor & Technology Committee with unanimous bipartisan support.  The bill is now headed to the Senate Appropriations Committee where we expect it to be approved and then on to the full Senate for consideration.

HB 1343 was amended in Committee this morning to clarify that independent contractors and employees of HOAs who only provide clerical, ministerial, accounting or maintenance functions are not required to be licensed as community association managers.  Obviously, these amendments make a great deal of practical sense.

We expect the full Senate to approve HB 1343 as amended in Committee and the full House to concur with the amendments prior to close of this 2015 legislative session.  Stayed tuned to this blog for updates as HB 1343 proceeds through the final phases of the legislative process!

 

 

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Construction Defect Bills Dead for Session: It's Time for Balanced Solutions

Yesterday the House State Affairs Committee killed Senate Bill 177 on a party line vote.  While the spin on SB 177 from a coalition led by the Metro Mayors Caucus and Denver Chamber of Commerce was impressive, there is no question the bill would have destroyed the rights of homeowners living in HOAs to hold builders fully accountable for their defective construction.   A week earlier, the same Committee killed Senate Bill 91, which would have reduced the statutes of limitations and repose relating to construction defects for single family homes.

After testifying on SB 177 yesterday in Committee, I sat through five hours of testimony on the bill.  I was astounded that the Mayor of Lakewood, Mayor of Littleton and other members of their coalition never talked about the horrific consequences that SB 177 would have had on homeowners living in their communities.  It was painfully obvious they were willing to sacrifice homeowners to potentially spur condominium construction.  However, not one of these witnesses testified that the destruction of homeowner rights would actually result in the construction of affordable housing.  In fact, their failure to tie immunity for builders to construction of affordable housing is why the bill died in Committee. 

There is no question that it is in the best interest of HOAs, homeowners living in them and builders to settle defect claims early on in the process.  There is also no question that the current system for resolving defect claims is broken.  It's time for the coalition to sit down with representatives of Community Associations Institute and homeowners to determine what is actually broken and to develop a fair and balanced approach to fix the problems.  It's time to stop the insanity and work together! 

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Manager Licensure Clean-Up Bill Receives Unanimous Approval in House!

HB 1343, the manager licensure clean-up bill, just cleared the Colorado House of Representatives unanimously with no amendments!  The bill will now move over to the Senate for consideration where we do not expect the bill to encounter problems.

Stay tuned for important updates on HB 1343. 

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