July 1, 2015 is the deadline for HOA Managers to be licensed by the Colorado Division of Real Estate (DRE). HB 13-1277, signed in 2013, is about to go into effect, requiring any person who manages the affairs of a common interest community on behalf of an HOA for compensation to meet minimum qualifications and obtain and maintain a license.
C.R.S. 12-61-1001 et seq. requires HOA managers to submit fingerprints, pay for a criminal background check, submit an application for licensure, and have one or more credentials as an association manager, which require both coursework and an exam.
Colorado currently has over 8,000 registered HOAs, and the Community Association Manager (CAM) Program estimates that it will issue between 1,200-1,500 licenses to professional HOA managers. As of 24 April, 2015, CAM reports that only 50 individuals and 10-12 companies have already been “approved” for licensure.
CAM is expecting a massive rush of applications, though it suspects that rush will come close to the July 1 deadline, as many managers are waiting to see what happens with HB 15-1040, whose passage would lessen the licensure education and exam requirements, and would greatly reduce the number of communities identified as “common interest communities” whose management must meet the licensure requirements.
To be ready for July, HOA management companies should obtain their licensure in compliance with the new law, while boards for professionally-managed HOAs should ensure their management company has taken the necessary steps for licensure, and should require a copy of its license be provided to the board.