Colorado Legislature to Take Up New Association Manager Licensing Bill
- January 10, 2024
- Miles Buckingham
- Comments Off on Colorado Legislature to Take Up New Association Manager Licensing Bill
Years have passed since the last iteration of community association manager (CAM) licensing ended in Colorado. The first set of laws and regulations were set to sunset, but a bill to revive and enhance them passed both houses, only to be vetoed by Governor Polis.
Now, House Bill 24-1078 is among the first proposed laws to be taken up in the new session. While the language of the bill could (and likely will) change as it winds through committee hearings and debate, the bill is notable for the deference it would give to the Director of the Division of Real Estate to set, for example, the amount of insurance a CAM would be required to carry. If passed without substantial alteration, the law would require those falling under the broad definition of a CAM to be licensed as of July 1, 2025.
The bill is brand-new, and is far from final, but among the notable inclusions is the proposal that a CAM could face discipline for “knowingly violating or directing others to violate any law or any covenant or rules of an HOA.” The bill also appears to require that Association money be held in a “bank or recognized depository in this state.” In recent years, large, national management groups have required their clients to use banks with few branches in far-flung states. This could substantially impact that practice.
Last time around, the attorneys at Nemirow Perez were among the very few practitioners who provided their manager clients with contract forms which met the then-existing laws and regulations. If this bill becomes law, we can help you and your company meet the requirements of the new legislative and regulatory scheme. Contact us today.