On May 31, 2019 the Governor of Colorado, Jared Polis, vetoed House Bill 19-1212 (“HB 19-1212”) “Concerning the recreation of the Community Association Manager (“CAM”) Licensing Program”. The Bill would extend the CAM Licensing Program in DORA for one year while the stakeholders process on how best to proceed. Mr. Polis believes that “Before any unregulated occupation is to be regulated, or any regulated occupation is to be continued, the state should complete its due diligence to ensure that regulation will, in fact, ensure consumers safety in a cost-efficient manner. This bill does not meet that threshold.” The Bill was limited in its scope to just the CAM Licensing Program and fails to look at other areas of concern. In 2017 DORA issued a sunset report for CAM with the following recommendations:
Continue the Program until 2023;
Allowing the division to establish renewal fees;
Repealing references to private or professional credential requirements.
However, HB 19-1212 doesn’t include any of those recommendations. The data received does not prove that regulating CAM had the intended effect of reducing harm to consumers and generally the costs associated with licensure are added to homeowner’s HOA fees. Instead Mr. Polis states that the real concerns are within community and homeowner associations broadly. Affordable homeownership is a real concern in Colorado and one of the top concerns of Mr. Polis’ administration.
Executive Order D 2019 006 was issued on May 31, 2019 that will direct the Executive Director of DORA, and the Director of the Division of Real Estate, to conduct a comprehensive review of how to better protect consumers, community, and HOAs. The General Assembly will still be able to establish a stakeholder’s process but will need to include the challenges with HOAs and homeownerships more broadly. It will also direct the department to consider, develop, and make recommendations by January 1, 2020 on matters including the following:
The licensure of CAM, considering recommendations from the 2017 DORA sunset report, and whether licensure needed to protect consumer safety is cost-effective;
Approaches the improve transparency among HOAs;
Methods to reduce costs and improve the transparency of HOA fees and fee schedules;
Strategies to promote homeowner rights and consumer protections through an evaluation of the Colorado Common Interest Ownership Act and other related acts or rules.