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Update Regarding Community Association Manager Licensing

HB 1212, the bill introduced to Recreate Homeowners’ Association Community Manager Licensing passed on Friday, May 3, 2019. It is currently awaiting the governor’s signature. The governor has thirty (30) days to sign the bill. If the governor takes no action , the legislation will become law […]

Xeriscaping Bill Sent to Governor

HB-1050 has passed both the House and the Senate and has been sent to the Governor for signature. The bill prevents a homeowners association from prohibiting the use of drought-tolerant landscaping in common areas of a covenant controlled community. Under current law, a homeowners association […]

Manager Licensing Bill Has Now Been Introduced!

Manager Licensing Bill Has Now Been Introduced!

We knew it was coming and on February 25, 2019, HB 1212, which would reinstate Community Manager licensing, was introduced in the House.

As you will recall, last year, the bill to extend manager licensing was defeated. As of right now, if no legislative action is taken by the legislature in 2019, manager licensing will no longer exist after June 30, 2019.

The following is a message from the CAI’s Colorado Legislative Action Committee regarding the bill:

This past summer, CLAC conducted a two-month outreach process with Colorado CAI members to better understand their opinions on Community Association Manager licensing, their interactions with DORA, and what they would like to see the future of management licensing to look like. We conducted five Road Shows across Colorado in South Denver, Vail, Fort Collins, Westminster and Colorado Springs. We also conducted an online survey of the Colorado CAI membership for additional feedback. The survey generated 316 responses and more than 60 people attended the Road Show events. You can review the presentation we did on the findings here.

From the Roadshow and the survey, we learned that more than 60% of Colorado CAI members wanted continued licensing of managers and 72% of Colorado CAI members wanted continued licensing of management companies. There was also significant  feedback about the complaint process and lack of industry knowledge by DORA regarding the licensing program. CLAC took this feedback, and, when we learned several bills were coming to recreate the licensing program, we worked to get all of the potential bills combined into what is now House Bill 1212. We still have some more work to do and will continue to work with legislators on additional amendments.  We did get several improvements and modifications to the existing program that we asked for per the Colorado CAI member feedback. CLAC has also been in close communication with CAI National throughout this process regarding national public policies for states that propose mandatory regulation. Lastly, CLAC has initiated meetings with DORA since the inception of the manager licensing program and, more recently, in an attempt to negotiate aspects of the bill. 

As introduced, House Bill 1212 will do the following:

  • Extends the licensing program until September 1, 2024, when it will again undergo a sunset review process.
  • Creates an advisory committee to DORA that will make recommendations to the director regarding changes to rules, adoption of guidelines and the process for handling complaints. The committee is made up of seven members; three of which are licensed community managers, two homeowners, a CPA, and an attorney. This committee was added at our request after hearing about the need for DORA to better understand the industry. Our original request, per Roadshow feedback, was for an oversight board; however, that request wasn’t financially or politically feasible after discussion with legislators.
  • Clarifies certain administrative functions that do not require a license.
  • Clarifies the apprentice program and supervision requirements.

We are continuing to work on the complaint process with DORA to find a better solution. Stay tuned for more news on this section as this develops.
We will be reaching out to you in the coming days to solicit your help in advocating to legislators on the importance of CAM licensing. We will also be updating the 
CLAC website  regularly with additional information.

Make sure to check back here for updates regarding this bill. Cornerstone will also be blogging on major developments with the bill. Stay tuned!

Wage Garnishment Bill Introduced

On February 19, 2019, a bill which would significantly affect a creditor’s ability to collect through wage garnishments was introduced in the House. Under current law, the amount of an individual’s disposable earnings subject to garnishment is (in general) 25% of the individual’s disposable earnings […]

Phones Back Online

Thanks so much for your patience while our phones were down. We are back online at this time.

Technical Difficulties – Phones Down

We are experiencing issues with our phones and they are down at the moment.  We are working diligently to fix the issue so that we can be back in touch.  In the meantime, you can reach us at mail@yourcornerstoneteam.com.  Thank you and have a great day!

Reserve Specialists and CAI Credentials

Much like knowing that your attorney or other business partner has earned the Educated Business Partner Distinction (Ashley Nichols of Cornerstone Law Firm, P.C. has!), you should also be asking whether your reserve specialist has earned CAI’s Reserve Specialist credential. Community associations rely on qualified reserve specialists […]

Another Bill Affecting Landlords/Tenants Introduced

HB19-1118 was introduced this week relating to landlord/tenant issues.  Introduced on January 16, 2019, if passed, would require a landlord to provide a tenant fourteen (14) days to cure a violation for unpaid rent or for a first violation of any other condition or covenant […]

Landlords! New Bill Introduced Regarding Rental Application Fees

HB19-1106, also known as the Rental Application Fairness Act (creating C.R.S. § 38-12-901 et seq), was introduced in the house on January 14, 2019.  If passed, the bill would do three things:

  1. Limit the application fee that a landlord may charge an applicant to the actual costs for a personal reference check or for obtaining a consumer credit or tenant screening report;
  2. Require a landlord to provide each prospective tenant with written notice of the landlord’s tenant selection criteria and the grounds upon which a rental application may be denied before accepting an application or collecting an application fee; and
  3. Require a landlord to provide a prospective tenant with an adverse action notice if the landlord takes adverse action on a prospective tenant after reviewing the rental application

In this blog, we’ll address each section of the bill and discuss in a bit more detail.

SECTION 1

The first portion of the bill would, as stated above, prohibit a landlord from charging an application fee unless the fee is used to cover the landlord’s costs in processing the rental application.  The costs may be based on the actual amount the landlord incurs in processing the rental application OR the average amount that the landlord charges each prospective tenant based on the average costs incurred in processing rental applications.

Not only would the bill provide as stated above, but the landlord would also have to provide any person who has paid the application fee with either 1) a disclosure of the anticipated expenses for which the fee will be used; or 2) a receipt that itemizes the actual expenses incurred.  If the landlord is charging a fee based on the average cost of processing the application, then the landlord must include information in the disclosure about how the average rental application fee is determined.

Additionally, the bill would not allow a landlord to charge one prospective tenant a fee that is different from the fee charged to another prospective tenant who applies to rent either the same unit or any other unit offered by the landlord at the same time.

SECTION 2

In its second portion, the bill would require that prior to accepting a rental application or collecting an application fee, the landlord must give the prospective tenant written notice of the tenant selection criteria and the grounds on which a rental application may be denied.  The bill provides the following list of grounds for denial which must be included in the notice (if the landlord will deny a prospective tenant’s application based on these criteria):

  • The prospective tenant’s:
    • criminal history;
    • rental history;
      • If using this as criteria, the landlord cannot consider any history beyond five years immediately preceding the application date.
    • credit history; or
      • If using this as criteria, the landlord cannot consider any history beyond five years immediately preceding the application date.
    • current income
  • Failure to provide accurate or complete information in the rental application; or
  • Failure to pay the application fee in the amount specified in the notice.

SECTION 3

If the landlord takes adverse action (denies an application or requires additional conditions to be met), written notice must be provided to the prospective tenant which states the reasons for the denial and/or additional conditions.

What would be the penalty for violation of the Act?  Two times the amount of the rental application fee, plus court costs and reasonable attorney fees. 

While responsible landlords are already taking these steps to ensure that they are screening for responsible tenants, this bill would formalize those steps and require that landlords jump through a few more hoops to ensure compliance.  Is it really necessary?  What are your thoughts? Chime in with your comments – we’d love to hear from you!  We’ll be following the progress of this bill throughout the legislative session, so check back often for updates!

 

Acceleration – A Tool in Your Debt Collection Toolkit

Assessments are the cornerstone of an association, and the necessity of an association to collect delinquent assessments is of utmost importance – an association cannot be run without assessments being paid! It’s the start of a new year and your Board likely has its delinquencies […]