CLAC Update on Status of Manager/Management Company Regulation

The Community Associations Institute’s (CAI) - Colorado Legislative Action Committee (CLAC) has been carefully reviewing DORA’s 2012 Sunrise Review: Common Interest Community Association Managers (Sunrise Review). For those of you who have read the Sunrise Review, you know that DORA ultimately recommended the regulation of management companies.      

The CLAC feels that DORA’s recommendation to regulate management companies will not provide protection to all Coloradoans living in homeowners’ associations. DORA’s conclusion that, “For the most part, community associations contract with management companies, not individual community managers” does not accurately reflect the fact that many associations around Colorado retain the services of managers who are not affiliated with a management company.

 

CLAC’s position has always been that if DORA recommended against individual manager licensure, we would not proceed with a bill. While DORA did not endorse the licensure of individual managers, it also did not recommend against it. Instead, DORA presented the regulation of management companies as “an alternative” to CLAC’s proposal in the Sunrise Application. DORA’s unique approach in making this recommendation has cleared the path for introduction of a manager licensing bill when it is determined that the timing is right.   

Given the fact that legislators will expect some action by CAI relating to the Sunrise Review recommendation that management companies be regulated, CLAC will begin an indepth review of this issue by surveying and reaching out to CAI members on the potential regulation of management companies. As part of this process, it is imperative to solicit the feedback and input from management company CEOs, managers, community association voluneer leaders and business partners before any legislation can be considered.

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