This is the ninth year I have worked on HOA legislation in Colorado. In all of those years, I have never seen so much "stuff" packed into one bill as was packed into House Bill 16-1133 (‘HB 1133"). On Monday, the House State, Veterans & Military Affairs Committee (the "State Affairs Committee") wisely and unanimously killed HB 1133. Here’s what the bill would have required:
1. It would have changed the licensure requirements for those community association managers who manage small HOAs. It would have required the Division of Real Estate to prepare less comprehensive educational courses and examinations for these managers. In addition, it would have lowered licensure fees for these managers – which would have increased the fees for all of the other community association managers in Colorado.
2. It would have required community association managers to tattle on their boards of directors to the Colorado Division of Real Estate when, in the opinion of the manager, the board is failing to comply with their governing documents or the Colorado Common Interest Ownership Act ("CCIOA"). Putting a manager in the position of being "big brother" for their boards would certainly not be conducive to a good working relationship. In addition, this provision would have required managers to engage in the unauthorized practice of law.
3. This bill would also have required management companies to provide detailed receipts relating to the transfer fees they charge for the conveyance of a unit. Since Colorado law and Division of Real Estate rules already require managers and management companies to disclose their transfer fees on a yearly basis and to provide the exact amount of the transfer fee to a seller or buyer of a unit within three days of receiving a written request – there is no need for such a receipt and it would only have increased the cost of the transfer fee! In addition, currently if a manager or management company do not disclose their transfer fees, they cannot require payment of the transfer fee and can be disciplined by the Division of Real Estate.
The action of the State Affairs Committee on Monday has put the issue of manager licensure and transfer fees to bed for the 2016 legislative session. However, as always, stay tuned to this blog for information on other HOA bills we are following.