After much debate between interested parties, HB 1212 has passed and is on its way to the Governor in a form that is substantially different than existed on Monday. Rather than recreating Colorado’s manager licensure program, HB 1212 revives prior licensure legislation until September 1, 2020, and creates a stakeholder process to gather information from owners and managers and make recommendations to the director regarding community management, such as the complaint process and credentialing. Be sure to check this site for updates as we await the Governor’s signature, and analyze the impact of the new process on communities and community association professionals.
After much debate and discussion, the amended version of House Bill 19-1212 has been laid over until tomorrow, May 1, when it will be sent back to the Senate Finance Committee for a vote. After Finance, the bill will go to Appropriations, and then to second and third readings on the Senate floor. If the bill is amended during this process, it will go back to the House for concurrence.
Be sure to check www.cohoalaw.com for all the latest happenings as this legislative season races to a finish!
With one week left in the Colorado Legislative Session, an amended version of House Bill 19-1212 (“HB 1212”) has just cleared the Colorado House of Representatives on a 44 to 22 vote, with 1 excused, and is moving to the Senate. While one week doesn’t seem like a lot of time to get the bill through the Senate, with the Colorado General Assembly working crazy hours until adjournment for the year, passage through the Senate is definitely doable. Senator Rhonda Fields, the Assistant Majority Leader in the Senate, and Senator Nancy Todd are the Prime Sponsors of HB 1212 in the Senate. Both of these legislators are capable leaders with the ability to get HB 1212 across the finish line before the 2019 legislative session adjourns.
Stay tuned to this blog for updates on HB 1212 as it continues to proceed through the legislative process!
First off, I would like to thank all of you who responded to our Call to Action to contact members of the House Finance Committee to ask that they report House Bill 19-1212 (“HB 1212”) out of Committee without any amendments. Your commitment to help us get HB 1212 out of the Finance Committee worked. On April 17th, the Finance Committee reported HB 1212 out of Committee without amendments on an 8 to 3 vote, which exceeded our expectations! This morning, HB 1212 was also passed out of the House Appropriations Committee on an 8 to 3 vote and sent to the full House for a vote on second reading. The bipartisan support of this bill in the House Finance and House Appropriations Committees was really great to see.
HB 1212 will now be voted on by the full House on second and third readings. Given the make up of the Colorado House of Representatives, we expect the bill to be voted out of the House and sent over to the Senate for action. The bill will be on a tight schedule, since the Colorado General Assembly is scheduled to adjourn on May 3rd. To that end, it’s essential that HB 1212 clears the House and makes it through the Senate without any further amendments. This will prevent the need for HB 1212 to go to a conference committee, which would eat up time.
Please keep your eye on this blog for updates on HB 1212 as it continues to move through the legislative process and for Calls to Action that may be necessary to keep the bill moving without amendments.
As you probably know by now, the Community Association Manager Licensure Program (“CAM Licensure Program”) in Colorado is currently scheduled to end on the last day of June. To ensure that the licensure of Community Association Managers continues, House Bill 19-1212 (“HB 1212”) was introduced in the House of Representatives by Representative Brianna Titone and Representative Monica Duran to improve the CAM Licensure Program and extend it through August of 2024.
HB 1212 cleared the House Committee on Transportation & Local Government with amendments and is currently scheduled to be heard on Wednesday, April 17th by the House Finance Committee. Since the fiscal note on the bill is rather insignificant, HB 1212 should normally sail through the Finance Committee with no issues. However, some folks have been lobbying members of the Committee to water down this important licensure program by asking this Committee to amend HB 1212 to convert it into a voluntary certification program.
What would that mean? It would mean that that the investment which management companies and community association managers have already made to be licensed will be lost. It also means that managers will no longer be required to demonstrate through passage of an examination that they have the core competency necessary to effectively manage their communities. In addition, it means the managers will not be required to participate in continuing education to keep them current on changes in the law impacting HOAs and on the latest industry standards relating to management and governance of HOAs.
We need your help to ensure that HB 1212 is reported out of the House Finance Committee on Wednesday without amendments! By Wednesday morning, please call and email the members of the House Finance Committee to ask them to pass HB 1212 out of Committee without amendment. Tell them the following:
- The Community Association Manager Licensure Program has elevated the profession of community association management by ensuring that managers of these communities have demonstrated the basic competencies required to effectively manage HOAs in Colorado;
- Since a home is typically the largest investment anyone will make in their lives, boards, homeowners and residents of HOAs have a right to expect that the manager of their HOA is competent to manage their community; and
- The Community Association Manager Licensure Program has been essential in promoting the competent management of HOAs and must be continued to ensure that HOAs are well managed and to protect the investment the citizens of Colorado have made in their homes.
Members of the House Finance Committee
|Representative Leslie Herod, Chair||303-866-2959||
|Representative Kerry Tipper||303-866-2939||
|Representative Susan Beckmanfirstname.lastname@example.org|
|Representative Adrienne Benavidez||303-866-2964||
|Representative Shannon Bird||303-866-2843||
|Representative Rod Bockenfeld||303-866-2912||
|Representative Matt Gray||303-866-4667||
|Representative Janice Rich||303-866-3068||
|Representative Shane Sandridge||303-866-2965||
|Representative Marc Snyder||303-866-2932||
|Representative Tom Sullivan||303-866-5510||
Thank you for contacting these members of the House Finance Committee and for helping us to ensure that the licensure of Community Association Managers continues!
Winzenburg, Leff, Purvis & Payne is pleased to announce the next session of our Warehouse Lecture Series, which will be held on Friday, April 12th from 8:30 am to 12:30 pm in our warehouse classroom located at 8020 Shaffer Parkway, Suite 300 in Littleton.
The classes we will be teaching have been approved by DORA for 4 hours of Community Association Manager Continuing Education Credits. We are also seeking approval for the classes from CAM-ICB. Session topics include the following:
√ Fair Housing – Handicaps, Disabilities, Tales from the Trenches and Lessons Learned
√ Property Insurance Coverage and Claims – Who Pays for the Damage?
√ Common Element Management and Improvements
√ Hot Topics – Reports from the Capitol, Courts and Communities
The full half-day session costs $75.00. Individual credits for attendance at select one-hour classes are available for $20.00 per class. To register for the half-day session or individual classes, please email Allison Grout at email@example.com. We look forward to seeing you on April 12th!
On Tuesday, March 26th, House Bill 19-1212 (HB 1212) finally cleared the House Committee on Transportation & Local Government with several amendments and was referred to the House Finance Committee for consideration of the Fiscal Note. For those of you who follow this blog, you know that HB 1212 is an extremely important bill that will reenact the Community Association Manager Licensure Program in Colorado, which is set to expire on June 30, 2019, unless this bill is signed into law by Governor Polis.
Continuing this important program will protect the significant investment in licensure already made by managers and management companies across Colorado, will continue to elevate the profession of community association management and will provide important consumer protections.
Eight amendments to HB 1212 were considered in the House, with seven of them passing. This preamended version of the HB 1212 shows the amendments to the bill which include:
• The authority of the Director of the Division of Real Estate, in consultation with the Advisory Committee, to establish by rule the credentials that will be recognized as qualifying for licensure;
• Provides that all fees, including transfer fees, must be included in the manager’s contract with the HOA or an addendum to the contract, in order to be enforceable;
• Includes a comprehensive process which must be utilized by the Division of Real Estate to investigate and adjudicate complaints brought against a licensed Community Association Manager;
• The authority of the Director of the Division of Real Estate, in consultation with the Advisory Committee, to establish rules relating to the appointment and removal of Advisory Committee Members; and
• In the future, a sunset review will be prepared to determine whether this Community Association Manager licensure program will sunset on September 1, 2025.
The heavy lifting for amendments was handled in the House Committee on Transportation and Local Government, and the House Finance Committee will next consider whether to approve the fiscal note for this program – which should not be an issue. Once this is accomplished, HB 1212 will go before the full House for a vote on second reading of the bill.
Stay tuned to this blog for significant updates on HB 1212 as they become available.
Many Colorado communities are facing the need to impose special assessments as a result of recent wind and hail events in the state. Special assessments may be imposed in circumstances where the association lacks cash on hand to pay for a large or unexpected expense. Such assessments have become increasingly common due to changes in the insurance industry.
Historically, condominium communities and other associations that are obligated to insure roofs and exteriors against damage have paid a flat deductible for various claims. Due to the expense and frequency of hail claims, insurance companies are no longer offering flat deductible amounts, and are instead requiring associations to pay a percentage based on the value of the insured property. Now, instead of a community paying a predictable $5,000 or $25,000 for a hail claim deductible, communities are facing unexpected six-figure deductibles.
Because this change is recent, and the deductibles are high, many communities do not have sufficient cash reserves to pay the deductible. Other communities choose not to reallocate reserve funds that may be earmarked for other projects, like asphalt replacement. As a result, communities turn to their members to bear the deductible by way of a special assessment. Many homeowners have loss assessment or additional coverage on their personal insurance policies, which can help pay some or all of that special assessment.
If your community is facing an unexpected deductible and you aren’t sure how to pay for it, contact legal counsel to determine the process for undertaking a special assessment. In the meantime, as the weather starts warming, hope for rain – and no more hail!
As Lindsay Smith recently reported in a blog post, House Bill 19-1212 (“HB 1212”) was introduced in the Colorado General Assembly on Monday to extend the Community Association Manager (“CAM”) licensure program in Colorado, which is currently scheduled to end on the last day of June.
As you may recall, a bill introduced to extend the CAM licensure program during the last legislative session, was killed in the Senate which was controlled at the time by Republicans who were looking to reduce government regulation. As a result of the recent elections, the Senate, House and Governor’s office are now controlled by the Democrats. That means there is a strong likelihood that HB 1212 will pass both chambers of the Colorado General Assembly and be signed into law by Governor Polis.
This is great news for those CAMs and their management companies who have invested a great deal of time and money to obtain and maintain their license. Licensure also elevates the specialized profession of community association management and provides a consumer protection for folks who live in community associations in Colorado.
HB 1212 was introduced in the House by Representatives Brianna Titone (D-Jefferson County) and Monica Duran (D-Jefferson County). The bill has been assigned to the House Transportation & Local Government Committee and is scheduled for a hearing on March 12th. The bill does the following:
1, Recreates and reenacts the CAM licensure program with a sunset date of September 1, 2024;
2. Provides that rountine ministerial functions relating to community associations may be handled by unlicensed individuals and gives the Division of Real Estate the authority to determine what functions may be carried out by unlicensed individuals and what functions must be handled by licensed CAMs;
3. Addresses the supervision requirements relating to apprentice community association managers who are not yet licensed; and
4. Removes the automatic acceptance of the non-state specific examination component of licensure for managers who hold the CMCA credential awarded by the Community Association Managers International Certification Board and the AMS and PCAM designations awarded by CAI National. However, this will not affect those CAMs who are already licensed in part under the CMCA certification and the AMS and PCAM designations.
Since the likelihood that HB 1212 will ultimately be signed into law is high and the licensure program will continue, licensed CAMs should seriously consider not delaying too long in obtaining your normal 8 hours of continuing education credits needed for renewal of your license on July 1st. In the unlikely event that the bill is killed during the legislative process, you will always benefit from continuing education courses.
Stay tuned to this blog for more information on HB 1212 as it proceeds through the legislative process.
Yesterday, Representatives Brianna Titone and Monica Duran introduced House Bill 19-1212, which, if passed, will re-create the community association manager licensure program that is currently set to end in July of this year. The proposed bill includes provisions responsive to comments made throughout the industry since the original advent of community association manager licensing, and will create a seven-member advisory committee tasked with making recommendations for rules and guidelines related to manager complaints.
We will regularly update this blog as the bill makes its way through the legislature.