Management Company Transparency Bill Headed to Governor Hickenlooper's Desk!
On a vote of 53 to 11 (with one representative excused), the Colorado House of Representatives just voted to approve the Senate amendments to House Bill 14-1254 (“HB 1254”). The next stop for HB 1254 is Governor Hickenlooper’s desk where we fully expect he will sign the bill into law. Once that happens, HB 1254 will become effective on January 1, 2015.
HB 1254 is the rewritten transfer fee bill that:
(1) requires managers and management companies to disclose their fees and charges to associations during contract negotiations and on a yearly basis thereafter;
(2) These fees and charges must be disclosed as part of the written management contract in order to be enforceable;
(3) To be enforceable, the transfer fees which management companies charge must be disclosed in the management contract or specified on a line item in the real estate closing settlement statement; and
(4) Management companies must also disclose any other remuneration the company or any subsidiary, affiliate, or related person or entity receives that is in any way connected to its relationship with the HOA.
Managers and management companies who fail to make these disclosures would be subject to investigation and discipline by the Division of Real Estate.
CAI’s Colorado Legislative Action Committee is thrilled with the bipartisan support HB 1254 has received in the House and Senate. We would like to thank the CAI members in Colorado for all of their amazing grassroots support. Stay tuned for an update when the bill is signed into law.