Law requiring HOA managers to be licensed by state takes effect

DENVER — A new law went into effect Wednesday that requires managers of community associations, such as homeowners’ associations, to be licensed by the state.

The Community Association Manager Practice Act was the result of legislation passed by the Colorado General Assembly and signed into law by Gov. John Hickenlooper in 2013.

Community association managers are those who generally perform duties that include inspecting the community for maintenance needs and compliance with community association standards. They also supervise maintenance activities, secure bids for the provision of services, interact with homeowners as a representative of the association, attend board meetings, prepare and present financial statements at board meetings and provide advice to board members.

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Licensing requirements include passing a state mandated test, completing a fingerprint-based criminal history background check and meeting the insurance requirements of having in effect both errors and omissions and crime fidelity insurance policies. Also, community association managers will be required to obtain continuing professional education before renewing their licenses.