Management Company Transparency Bill Easily Clears the Senate!
This morning, House Bill 14-1254 (“HB 1254”) was passed by the Senate on 3rd reading on a 32 to 3 vote. The bill, which was amended in the Senate to require that fees and charges be included in a management contract to be enforceable, is now headed to the House for concurrence with the Senate amendment. We don’t expect there to be any problems in the House with concurrence and the bill should be headed to Governor Hickenlooper to be signed into law sometime around mid-April.
As a reminder, HB 1254 is the rewritten transfer fee bill that requires managers and management companies to disclose their fees and charges to associations during contract negotiations and on a yearly basis thereafter. These fees and charges must be disclosed as part of the written management contract in order to be enforceable. In addition, any other remuneration received as a result of the relationship which managers and management companies have with their associations must be disclosed. In other words, managers and management companies would be required to disclose any funds they receive from third parties that are in any way related to the associations they manage. Managers and management companies who fail to make these disclosures would be subject to investigation and discipline by the Division of Real Estate.
Stay tuned for updates on HB 1254 as it returns to the House for concurrence and then is sent to Governor Hickenlooper for consideration. CAI’s Colorado Legislative Action Committee (“CLAC”) has worked hard to ensure passage of HB 1254 as it is currently written and we fully expect the Governor to sign the bill into law.
Molly Foley-Healy is Chair of CAI’s Colorado Legislative Action Committee