House Bill 24-1078 was recently introduced into the 2024 legislative session and, if passed, it will affect CAMS and their management companies by reinstating and furthering licensure requirements for both. The long and short of the bill is that business entities that perform community association management for common interest communities in the state would be required to be licensed to do so and such licensure would include demonstrating compliance with insurance requirements, designating an individual as the person responsible for community association management activities of the business and its employees, paying a fee for such licensure, and obtaining criminal history record checks for its community managers. Further, education requirements for managers and employees of the management company will be implemented. The bill also includes various grounds for disciplining the entity for violations, provides that audits of business records and accounts of the licensed business entities may be conducted, including random compliance audits, and allows for the granting of an injunction or restraining order against the business entity or manager in order to prevent continued violation.
Further, administrative fines up to $5,000, censures, terms of probation and suspension or revocation of licenses may be imposed.
Failure to obtain licensure or acting as a community association manager after licensure has been revoked (or during a period in which a license was suspended) will be considered a class 2 misdemeanor, punishable by up to 12 months in jail and/or a $1,000 fine.
If passed as currently written, management companies and community managers would be required to be properly licensed on or before July, 2025.
We will continue to update our 2024 Legislative Tracker as more information becomes available. If you have any questions about this new bill, please contact one of our Altitude attorneys at 303-432-9999 or email us at [email protected].
Amanda, is this likely to affect Silver Sage Village Association, as we are a self-managed cohousing community and do not hire a management company?
As it is currently drafted, the bill would not affect those Associations that are not self-managed.
Please keep me informed. Is this a state law or federal?
If passed, this bill would become state law.
Hello Amanda, Thanks for the info on the new HB 24-1078. This sounds like the prior manager licensing bill that was ‘sunset’ a few years back. Why is this now coming back again ? It seems like much of the same format as before. Thanks for any insight!
This bill is very similar to the prior manager licensing provisions as well as the manager licensing bill that was introduced and postponed in 2022. We don’t know why this topic is being reintroduced.
How will self-managed associations be handled under this proposed legislation?
As it is currently drafted, the bill would not affect those Associations that are not self-managed.