This morning, the Denver Post ran a front page story entitled HOA house may get put in orderWhile the story opens with a sensationalized account of a foreclosure which was not tied to manager misconduct, the story recognizes CAI as the leader in promoting the competent management of community associations in Colorado. As Chris Pacetti was quoted as saying, “We are trying to establish a level of professionalism and performance in the industry.” The article further highlights the need for criminal background checks, training and licensure.   

Brian Tobias, the Senior Policy Analyst at the Colorado Department of Regulatory Agencies (“DORA”) who is conducting the Sunrise review, boiled down the review process as follows: “A key question that the state is asking is whether community association managers cause harm, and, if so, would regulation fix it.” 


In conducting the Sunrise Review, it is our understanding that Mr. Tobias is looking into complaints relating to HOAs to determine whether they are credible and whether poor management actually played a significant role in them. Once this initial analysis has been accomplished, Mr. Tobias will then determine whether the regulation of managers would actually resolve these problems in the future. We will not know the outcome of the Sunrise review until it is published by DORA on March 2, 2012. 

The Denver Post also interviewed Senator Morgan Carroll for the story. She stated that “There are other protections that homeowners need beyond property-management licensure. Those include better election-fraud rules and protections against retaliation.” The Post reported that “Foremost, she would like to see enforcement on existing laws stepped up.” 


Senator Carroll’s comments to the Denver Post are consistent with conversations she has had with representatives of CLAC. However, at this time, it is important to note that she is not intending to introduce HOA legislation during the 2012 legislative session. CLAC will continue to engage with Senator Carroll and all legislators on these important issues.  


CLAC will continue to keep you updated on significant developments relating to the Sunrise review process and HOA bills as they become available.