Regulate Community Association Managers
If enacted, HB 1239 will significantly change the regulatory landscape for community association managers. This means that entities operating as community association managers will now be formally licensed, thereby raising industry standards. The bill sets forth extensive compliance measures that include the requirement for existing managers to be credentialed by recognized professional organizations, and periodic continuing education will be required to maintain their licenses.
House Bill 1239 establishes licensing requirements for business entities that engage in community association management for common interest communities in Colorado. The bill delegates regulatory authority to the Division of Real Estate within the Department of Regulatory Agencies. To obtain a community association manager (CAM) license, business entities must demonstrate compliance with specific insurance requirements, appoint a controlling manager responsible for the activities of the business, pay necessary fees, and complete criminal history background checks for the controlling manager and staff involved in community management.
The introduction of this legislation has sparked discussions among stakeholders in the real estate and community management sectors. Supporters hail it as a step toward professionalism in the field, fostering greater accountability and protecting community interests. However, some critics are concerned that the regulations may impose unnecessary burdens on smaller management firms and could elevate operating costs, potentially leading to increased fees for community residents. The bill also includes a scheduled repeal of the licensing requirement after September 1, 2029, prompting some to question its long-term viability and sustainability.