Group advocates licensing HOA managers

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A non-profit group that represents Home Owner Associations is advocating that managers of HOAs be licensed by Colorado.

The Colorado Legislative Action Committee of the Community Associations Institute has submitted a Sunrise Review Application to the Department of Regulatory Agencies to investigate the need for licensing Colorado community association managers.

Based upon DORA findings, CLAC could propose licensing legislation in the 2012 session.

“Colorado association managers are currently not required to be licensed, registered or certified and literally anyone can operate as a homeowners’ association manager without any qualifications,” said Chris Pacetti, chair of the CLAC licensing task force and executive director of the Ken-Caryl Ranch Master Association.

Licensing equals consumer protection

According to the CLAC, licensing of community association managers would provide additional consumer protection to homeowners who live in homeowners/condominium associations and would elevate the level of professionalism of association management.

“CAI’s Colorado chapters formed a task force more than six years ago to look at the need for community association manager licensing in Colorado and based on focus groups and multiple surveys with homeowner association board members and association managers, a large majority of association managers feel there is an overwhelming need for licensing,” said Dee Wolfe, who sits on the CLAC licensing task force and is senior vice president of Colorado Association Services.

“Running an HOA is like running a business,” Wolfe said. “Association managers are responsible for for protecting and maintaining property values in the communities they manage. For most people, their home is their single biggest investment so it is doubly important to have a licensed association manager who is held to a higher standard.”

Nine U.S. states and the District of Columbia have enacted manager licensing or certification standards and seven more states have pending legislation to enact such laws, according to Pacetti.

National momentum

“Legislation requiring licensing of association managers is gaining momentum nationally,” said Pacetti. “As we see more cases of embezzlement and companies and communities not adhering to state laws designed to protect homeowner rights, more states are realizing licensing provides homeowners much needed consumer protection.”

Several states that have enacted or have pending manager licensing legislation require managers to obtain their Certified Manager of Community Associations® certification, which is administered by the National Board of Certification for Community Association Managers ), an independent board that develops certification testing and standards for community association management.

According to Wolfe, the Colorado Division of Real Estate will be releasing a report in December that will detail the type of complaints gathered by the HOA Information & Resource Center.

“We know the information in this report will not be positive,” Wolfe said. “The homeowners that call this office are the ones complaining, not the ones complimenting their HOA. We feel the data from the HOA Information & Resource Center will support the need for licensing in Colorado.”

“The proposal for manager licensure is a non-partisan issue,” Pacetti said. “The need for professional and effective community management is an issue that crosses party lines and affects all homeowners who live within a community association.”