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.

Enough, the CAI Doesn't Represent HOAs and HOA Home Owners

Enough, the Community Association Institute doesn't represent Homeowners Associations (HOAs) or HOA home owners.  This organization represents the interests of HOA property managers (PMs) and the legal industry involved in HOA governance and representing HOA Boards in court.  No problem with this but the press, AARP, the legislature, and the general media get it all wrong.  In fact, the CAI is known among home owner advocacy groups as a mostly anti-home owner organization.

The Denver Post in the past months has published articles on the topic of construction defects and HOAs and the right of home owners to vote on the use of HOA funds prior to the HOA Board entering into costly and potentially financially devastating law suits.  The articles misleadingly indicated the CAI represents home owners and HOA organizations.  No evidence exists of any HOA organization or their organizing home owners to protect their interests.  The CAI opposed any mandate to have home owners vote on the use of their own funds in law suits. Is this pro home owners? 

Then there was the CAI's recent opposition to ending/limiting the HOA home sale Transfer Fee that has never been justified and is illegal on all home sales except in HOAs (wonder who got that exception into legislation?).  This fee lines the pockets of PMs (not HOAs), costs HOA home owners millions each year, and a PM can charge amounts ranging from $50 to $1150 for like services and the fee can't be negotiated by the home owner (and if not paid the home sale is held up).  Does this sound like they represent home owners?  Examples abound and can found on our web site www.coloradohoaforum.com

One final thought on this.  For the past decades the CAI in Colorado has been the primary if not the sole source on issues of HOA governance, home owner rights, and in writing HOA legislation.  They promoted their professionalism, altruism, and oversight of the HOA PM industry and were recognized leaders to our legislators.  As a result of their "leadership" and the thousands of PM related home owner complaints received by legislators and the State HOA Office, legislation was passed to clean up the PM industry.  Doesn't sound like leadership or protecting HOA home owner rights?

So enough of the CAI misrepresentation.  The press and our law makers should seek out the opinions of HOA home owners (organizations) in HOA issues and not simply default to those who profit and have the interests of PMs and lawyers as their focus.