HOA Legi-Slate

Recently the board of directors of both the Rocky Mountain and the Southern Colorado Chapters of CAI passed motions encouraging the Colorado Legislative Action Committee of CAI ("CLAC") to seek passage of a concept bill implementing a credentialing program for community association managers.  The boards urged that the CLAC do so within the next two years and that the Committee begin taking all necessary steps to ensure the required sunrise process required by the Colorado Department of Regulatory Affairs is commenced within 1 year.

The concept bill mandates that only a person holding a CMCA certification, as administered by NBC-CAM, shall be authorized to manage common interest communities in the State of Colorado or serve as the CEO or principal of any business entity that employs common interest community managers.  To sit for the CMCA exam, an individual will need to have a high school diploma or equivalent GED certificate, take CAI's M-100 course and take an 8 hour education course on Colorado law governing common interest communities.  In addition, no manager can obtain a CMCA if they have a felony conviction or guilty plea on their criminal record in the last 10 years.

It should be noted that the concept bill is just that - a concept.  In the event CLAC agrees with the recommendations of the Chapters and the Department of Regulatory Affairs determines that managers in Colorado should be regulated, the bill that will ultimately be introduced in the Colorado General Assembly and signed into law - may differ significantly from the concept bill.   

We'd like to hear what you think about the regulation of association managers.

The government is again intruding where it does not belong. Such associations and accreditations should evolve naturally in the market place, where being accredited might offer a market advantage appealing to HOA Boards who feel they need that assurance. Management associations who feel this certification will give them a competitive edge should pay for the association. Those who don't should not be compelled to join.

But by being goverment mandated it just adds to governement overhead by requiring a new (largely inefficient) government agency to administer it.

I'm fed up - this is just wrong.

I don't think it is necessary to be CMCA certified for anyone with 5 years experience in association management

there should be at least one other option to take the class. Getting locked into the gouging by CAI is ridiculous.

I agree with Jim. Leave the licensing requirements to the market. This smells like the CAI trying to get the government to grant them a guaranteed revenue stream. The government shouldn't be regulating community managers. The communities themselves? Yes, those need regulation, but not the managers.

Also, the blanket statement about no guilty pleas or convictions for 10 years? We need a little more sense thrown into that regulation. If the plea was for something totally unrelated to the field of community management then the individual shouldn't be barred from gainful employment in their field.

Where was CAI when we argued for this in the late 80's, one reason that after having completed m100,110, 120,130, and 140, I did not go on to complete the PCAM designation. No one took a stand then, and far two many Association's got burned by any indviduals who thought they could manage properties. It is amazing how long it takes for things to soak in. Having 30 years experience does come in valuable. Believe Me

ALL I CAN SAY IS THIS IS "NUTS". WHAT THIS DOES IS ALLOW THE CAI TO OFFER CLASSES (FOR AN EXORBINANT FEE) TO BE ABLE TO VOLUNTEER. DOES THIS MAKE SENSE?

I agree that managers should submit to some type of state authority. However, this should not be based on membership in any organization. While I am a member of CAI, this should not be a prerequisite for becoming licensed in the State of Colorado, nor should having to pay to take a class offered only by CAI or taking a test offered only by CAI. Second, some consideration should be given to those who already have considerable experience in managing communities. Third, the Department of Regulatory Agencies should be empowered to investigate all complaints and determine whether they are valid, and, if they are, to take action. There should be some due process to allow managers to address and respond to all complaints lodged against them. Otherwise, if the Department is just a repository of complaints which are public record, every angry homeowner will be encouraged (and even empowered) to file groundless complaints, which would be available to be viewed by anyone. We all know that 99% of complaints by homeowners are frivolous and result only from their not getting their own way. Fourth, any such licensing should be in coordination with the newly-enacted legislation establishing the Office of HOA Information. Perhaps that office could be the initial point of contact for anyone with a complaint, and could resolve most complaints then an there by helping homeowners understand their rights and responsibilities. If under the authority of the Division of Real Estate, managers could be dealt with in the same manner as real-estate brokers, which would lend an air of professionalism to the industry.

This is the common-sense approach to manager licensing that I envision. And let us never forget that having a bunch of letters after one's name does not mean that a manager is ethical. Most of the managers who have been convicted of embezzlement had a string of letters meant only to impress (and possibly mislead) homeowners. We know that this means they sat through classes and paid an exorbitant fee to one organization to obtain its endorsement. Those managers with a lengthy history of honorable service to associations don't need letters to impress anyone, but should be allowed to be licensed nonetheless.

I agree that his is yet another layer of cost and hoops a manager will have to jump through as well as redundant. Perhaps many do not know that currently The Colorado Real Estate Commission feels HOA management is a gray area and one should hold a real estate license to perform HOA management. So I am regulated by the CREC and therefore background checked, follow a code of ethics in addition to CRE's.

It burns me up - why don't they just go regulate everyone in every business!! There are dishonest people in every industry. The onus should be on consumers to do their homework with respect to are they working with a high integrity manager or group.

If there is ever a complaint forum for HOs against managers - I am out. There are too many wacko homeowners that I do not think I want to deal with the potential onslaught. We do a great job but you know it doesn't take much to tip the scales with owners.

I have to agree with the thread that managers with years of experience should not have to pass somebody's test. However some sort of regulation or licensing could be warranted as a way to deal with managers that are shown to be incompentent or negligent. My association has a certified manager, but whose inexperience is quite apparent.

Is CAI now supporting manager licensing or are they trying to get the legislature to make their program mandatory? I don't think it's appropriate for CAI to push it's own system through the legislature. If they support manager licensing, do that through the Dept. of Real Esatate, not by mandating a private program.

I agree with other comments about the CMCA & PCAM programs; they're expensive to get and maintain. Perhaps the REal Estate Division can devise a test, background check, experience level type of requirement at a reasonable cost.

This would be especially burdensome for very small associations like ours. And credentialing won't help our board do a better job managing.

I totally agree with the thread that states we don't need more government. Less is better. Our small association cannot get enough volunteers as it is, this would wipe us out.

This is something the government should stay out of....period. If accreditation has value, the market will recognize that fact. CAI is just trying to create a monopoly. There's often a problem with with these kinds of well-intentioned schemes to control something....the law of unintended consequences usually bites. Our Association has a "professional Management" firm in control, with certified personnel. They are, simply put, incompetent.

I agree with those who do not approve of this action. If the Government does decided to require licensing, those needing the license should simply be required to pass a State test. I have a PCA designation, have been in the industry for over 30 years and am not a fan of CAI. I do not have any of their designation because I don't agree with many of their policies and methods of managing associations. In fact, I once had to fire a PCAM. Requiring a person to be a member of and receive proof that they have been trained by that private organization is UNCONSTITUATIONAL !! We have enough unconstitutional government action now!! We don't need more

This is an excellent discussion thread. I agree that accreditation should be optional - though it would be nice if they would create a standard for accreditation so that any state approved organization could offer it and when an individual met those standard criteria we all knew what that meant. Mandatory accreditation accomplishes nothing. Experience and quality work is far more valuable then a few silly letters behind a job title. I applaud you all for voicing your opinions.

I think this is another ploy for the state to collect yearly fees and regulate our business. Many of us manage small associations and do a good job. This website helps us keep up with regulations to manage effectively.

The credentialing process would make it less likely for a manager to be corrupted. I support it.

I feel this is just another way for CAI to make $$ and they are over priced already, can you imagine if this was require? Plus causing a lot of unnecessary work for the already overworked property managers.
Some management companies might pick up the cost of the classes and testing but I know some would not. Would this increase your salary? Probaly not!!!
Keep doing a GREAT JOB all you managers and if you are not certified so what!!
I know the cost to maintain your Real Estate Licence has doubled thanks to the governing regulation, what next????