Join us for our Colorado Springs HOA Town Hall Meeting, Feb 13, free admission-open to the public

The Colorado HOA Forum will be holding another of its’ HOA Town Hall Meetings, this time in Colorado Springs, CO. The Meeting is open and free to the public and is the only HOA presentation from the home owner’s perspective. The Meeting includes an HOA home buyer’s seminar (9-10 am) followed by an array of HOA topics ending with an extended question and answer session for attendees. Find out about HOA legislation, HOA property manager licensing and responsibilities, HOA Transfer Fees on the sale of homes, and other issues affecting the home owner’s living environment, quality of life, and finances. BROCHURE ON OUR WEB SITE

The Colorado HOA Forum is Colorado’s largest and most effective HOA home owner’s advocacy organization working to improve HOA governance through legislative reform. The Forum is a pro-HOA organization and the only Colorado home owner centric organization with nearly 1,000 members located in 80+ cities/towns throughout the State. It strives to ensure a balance in HOA governance that promotes openness and inclusion in HOA governance, protection of home owner’s rights, and address abusive and costly practices that are costly to HOAs and their home owners.

Questions: contact us at www.coloradohoaforum.com or email coloradohoaforum@gmail.com

Pikes Peak Public Library, Library 21C
1175 Chapel Hills Drive
Room: Venue 21C
Colorado Springs, CO 80920
Saturday, February 13, 2016
9 am—12:45 pm
Plenty of free parking
Free to the public

Invited are all home owners, your legislators, HOA property managers, Realtors, the Community Association Institute (CAI), representatives from the State's HOA Office and DORA, and the media

HOA Property Manager Licensing Nabs First Culprit, but.....

Colorado implemented an HOA Property Manager (PM) Licensing Program July 1, 2015.  The intent is to provide home owner protections against unscrupulous business practices in the HOA property management industry.  DORA, the agency managing the program, nabbed its' first culprit this past week after the program has been functioning for nearly six months.  This is some good news for home owners and a flag waving and press release event for DORA.   The Colorado HOA Forum, Colorado's largest and most recognized HOA home owner's advocacy organization, was a force to promote licensing and applauds this single event.

As always seems to be the case with DORA and HOAs and HOAs and legal enforcement of HOA related law, all that glitters is not gold.  Let us bring the home owner up to date on what has and is really happening with the licensing program:  serious backlog in processing complaints; known unlicensed PMs to DORA have gone months without any corrective action; although the recent culprit was prevented from practicing there should have been accompanying fines and recommendations for criminal prosecution; DORAs feedback to complainants (home owners) is slow, inadequate, or non-existent; DORA implemented licensing rules that favor the industry it is supposed to regulate thus making PM responsibilities and accountability more difficult to prosecute;  the web site makes filing complaints and looking up licenses less than an easy and accurate experience ignoring suggestions for improvement;  the law needs to be changed to provide financial and credentials relief to the smallest of PM's that in some cases the cost to acquire a license is more than a year's income; and requirements for full disclosure of HOA Transfer fees charged home owners by PMs involves an insulting definition of full disclosure, a one liner on a home closing statement, that ensures home owners can't challenge the legitimacy of this abusive and illegal fee that cost home owners nearly $10 million a year.

The licensing program to date has been more a fees collection, business cost imposition, and tool for special interests to sell educational classes than one of consumer protection.  The licensing law and DORA rules have been unduly influenced by interest groups representing the PM industry,  the Community Association Institute (CAI), with home owner input scant.  DORA has had well over a year to implement this program and home owners deserve more.  The law can and must work and home owners will benefit.  Legislation is needed to rectify deficiencies in the law to make this program provide the consumer protections intended.  Our organization will continue to work with legislators to have the voice of home owners and small businesses heard.

HOA Property Manager Implementation: Problematic

Colorado fully implemented its' Community Association Manager (CAM) Licensing Program (aka HOA Property Manager) July 1, 2015.   DORA, the state Agency responsible for implementation and management of the program, had over one year to analyze, plan, design, develop, test, and implement the program.  The scope and complexity of the program are very similar to other regulated professions in the State thus making implementation neither new territory or requiring a host of new on-line applications.  Our organization, Colorado HOA Forum, offers the following status report on this program and it is not good:

1.  The rules developed by DORA to ensure CAM compliance with the law and bring accountability to the profession are ambiguous and require change.  Specifically, (1) rules need to definitively and comprehensively state CAMs must comply with all State HOA laws and HOAs governing documents; (2) require CAMs to notify HOA Boards if any of their activities are in non-compliance with State HOA laws and/or HOA governing documents and recommend corrective action and if violations continue the CAM must report the event to DORA and the State's HOA Office;
2. DORA requirements for full disclosure of CAM fees assessed HOAs and home owners are severely lacking and avoid accountability.  In particular, DORA requires nothing more than a one liner in an HOA contract or on home closing documents to represent full disclosure which is simply conceding to CAM industry demands to allow things to remain as is.  DORA full-disclosure requires no detailed explanation of a fee or why it is charged, who determines the amount of the fee and retains it, confirming and explaining that any fee doesn't overlap or duplicate any charge already paid for through HOA dues or by a Title Company ( (such as the HOA Transfer Fee), requires no receipt to the payee identifying charges by line item, and no requirement to justify the authority to charge the fee and a statement how any Transfer Fee is in compliance with State law HB 11-234 that defines and restricts this fee.
3. The DORA web site complaint application requires changes to make it easier to use:  develop an on-line complaint status process;  assign a tracking number upon completion of complaint for users to inquire/determine the status of their complaint; allow users to mail in documentation that is not conducive to e-mailing; immediate on-screen confirmation when completed with complaint that indicates a successful filing;  the license lookup system doesn't list provisional/temporary licenses and only lists one licensed CAM for the largest of property management companies;  one can't enter an HOA and find the CAM; search results for a CAM license lookup results in display of information from all DORA programs (clutter!); allow for display all HOAs serviced by a licensed CAM; and provide options to classify the type of CAM complaint to make review and justification of complaints easier to complete and review.
4. The time frame in which CAM complaints are resolved is extremely slow to non-responsive.  There are cases where DORA knows for months a CAM is not licensed and refuses to take action such as a cease and desist order and/or fine.  Closing out/decisions on complaints is very slow and too often complaints seem lost in a bureaucratic maze.
5. DORA licensing, fees, and educational structure is burdensome to the smallest of CAMs and relief to these small businesses should be implemented similar to relief given small HOAs in registration fees.
6. The licensing program to date is more of a fees imposition and collection system and sales promotion tool for educational courses for a private firm (Community Association Institute (CAI) than a program for bringing integrity and accountability to profession.

CAM licensing program deficiencies need to be addressed to serve the needs of the public vs catering to the interests of the very industry it is supposed to regulate.

Colorado HOA Forum's Winter Edition Newsletter Posted on Web Site

The Colorado HOA Forum, www.coloradohoaforum.com, Colorado's largest HOA home owner organization has posted its' Winter 2015 newsletter on its' web site.  This edition focuses on the implementation of the new HOA Property Manager (aka Community Association Manager (CA)) licensing program, HOA Transfer Fees, HOA and CAM dispute resolution and complaint filing with the State, and a host of other HOA issues.  An overview of the Forum's latest HOA Town Hall Meeting from November 12 in Aurora, CO is presented indicating what is of concern to HOA home owner's.  Keep in touch with HOA current events, HOA legislation, and home owner's issues with this easily accessed newsletter.  This is Colorado's only HOA periodical presenting HOA issues from the home owner's perspective.  Those wishing to subscribe to this free newsletter can join on the Forum's web site. 

Colorado HOA Property Manager Licensing: make it effective and not burdensome

The HOA Property Manager Licensing Law HB 15-1343 has now been fully implemented and some obvious weaknesses and flaws exist that should be addressed.  Two issues stand out that need attention: changes to the law and DORA's administration of the law.  This posting addresses changes to the law.

 

Community Association Manager (CAM aks HOA Property Manager) law:

The law requires small HOA CAMs to pay and complete the same requirements as mega-CAMs.  This has caused CAMs serving small HOAs (in particular in rural communities) to end their services: the financial burden was too much.  Relief should provided in the law, similar to small HOA registration requirements, to reduce educational and other fees requirements but NOT eliminate them for those CAMs serving less than a total of 25 units.

 

This law, similar to HB 14-1254, Disclosure of Fees, was supposed to require full disclosure of any fees assessed and/or collected by a CAM (from the HOA or home owner).  DORA has allowed this to be defined as a one-liner in a contract or on home closing documents with no detail, no receipt to the home owner, no justification of the fee, and no mention that the CAM, not the HOA, determines the amount of the fee and retains it.  Disclosure is particularly important when CAMs assess HOA Transfer Fees that average $350 on the sale of an HOA home and provide no legal basis, receipt, or work justification.  Disclosure must be not only required in detail but clearly defined what detailed disclosure means.  Any fee assessed home owners, in particular the Transfer Fee, must be in compliance with State law SB 11-234 that authorizes and limits this fee. Note this law can't limit the amount of, refund, or adjust a fee but it is a first step in reining in this abusive fee.

 

The CAM law needs to be more clearly defined and strengthened to include requirements that CAMs must comply with State laws and the HOAs own governing documents.  DORA has refused to include explicit rules and the law should be updated to clearly include:

 

        CAMs must comply with all State HOA laws and with the governing documents of the HOA they serve and knowingly violating or being aware of such violations is subject to fines and/or revocation of license.

 

       If a CAM is aware of an HOA Board being in non-compliance with State HOA law or their own governing documents they must immediately advise the Board and their legal representation of such non-compliance and suggested corrective action;  if the corrective is not taken the CAM must apprise both Board and the HOA's legal representation in writing of such violation and recommended corrective action;  if corrective action is not taken within seven days after CAM notification, the CAM will notify DORA and the HOA's legal representation.

Colorado HOA Forum Issues "HOA Manager Complaint Guide"

The Colorado HOA Forum has made available on its' web site a DRAFT copy of its' HOA Property Manager Complaint Guide for use by home owners who want to file a complaint against an HOA property management company under the new Community Association Manager (CAM) Licensing Law.  The Guide will make it easier to complete the State's on-line complaint form and also will help home owners write the justification for the complaint using references to State HOA laws.  For example, if a home owner is denied access to HOA records, has issues with the way meetings and elections are conducted, if their HOA is in total disrepair, or if the HOA is charging home buyers/sellers an HOA Transfer Fee they can file a complaint with the State Office (DORA).  The Guide provides legal references that can justify these issues as a violation of law requiring disciplinary action by the State.


The Forum understands this Guide is an ongoing process to develop additional legal references to support a laundry list of home owner complaints.  It has submitted a list of changes to DORA concerning changes to the on-line complaint process and to add additional features such as allowing complaints and documentation to be submitted via email and U.S. mail and a process to track and give feedback to home owners about filed complaints.


The Colorado HOA Forum also is available to help home owners on filing their complaints by filling a contact form on their web site:   www.coloradohoaforum.com .

Colorado HOA Manager Licensing Program Flawed

"HOA Exams Prove Tough", Denver Post May 17

HOA Exam Difficulty Related to DORA Incompetence

Exams based on educational requirements would not have this failure rate.  The educational courses promoted on the DORA web site and in State licensing legislation, HB 1277, have never been reviewed for content and relevance to the State exam. In fact the courses offered by the Community Association Institute (CAI), that represents the property management industry and makes a lucrative business by selling educational courses, got DORA and State legislatures to promote their courses (highly inappropriate) even before the final rules of conduct, requirements, and test exams were completed.  Property manager candidates believe endorsement indicated the proper study material.  Further, DORA has never completed an official review of CAI courses (that most candidates purchase to fulfill their educational requirements and acquire exam related knowledge) to ensure new HOA laws are even included in CAI material.

 

In our most recent legislative session a few legislators put together a successful Bill, HB 1343, to supposedly "streamline" and fix" the licensing process even though no known problems have been reported and no experience officially existed in the program (it is not effective until July 1, 2015).  The Bill was created with direct involvement of the CAI and DORA and once again it promoted only CAI courses that have never been officially approved for Colorado State testing relevance, it included licensing exemptions for executive types that surely need the training, and didn't "streamline or fix" any known problems officially reported by DORA with the educational courses or testing program. 

The actions by DORA and our legislators have resulted in property managers spending their time and money taking courses that doom them to failure in the exam and will drive many out of business.  The program has turned more into a fees collection and test taking initiative than a law about consumer protection and promoting competency and accountability in the industry.  Until DORA completes an official review and approval of course material that ensures educational material is relevant to testing the licensing program should be put on hold.