Licensing Property Management Companies: Article & Our Comment
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Losing one’s home due to delinquent HOA fees, the
issue of abusive practices by HOA’s and their
forefront.  HOA fees and add-on charges to small
homeowner debt can turn out to be unlimited,
oppressive, and abusive.  Even the smallest
amount of delinquent debt can end up with an
HOA/PMC  foreclosing your home!  The money
machine for HOA debt collection is out of control
with no protection for homeowners.  Regulation of
the PMC industry has been pursued by our
advocacy group, the Colorado HOA Forum (www.
coloradohoaforum.com), for years.  Now, the
legislators, DORA (Department of Regulatory
Agencies), and the Colorado HOA Information Office
and Resource Center are actively pursuing
regulation.  This is overdue.  Is this really good
news?   

recommendation is to regulate PMC’s but not the
recommendation is to regulate PMC’s but not the
CAI individual property manager.  Good news.  The
details of “how” to implement this reform still need
to be worked out. Trade groups such as the CAI,
completed its’ review of a proposal by the CAI to
however, seem to be attempting to:  1) monopolize
training, certification, and continuing education
requirements that will drive up costs and 2) make it
mandatory for dues to be paid to their organization
for license retention/recognition.  Clearly missing in
the CAI proposal is discussion of restricting/limiting
fees and add-ons to HOA debt and ending
foreclosures related to most debt.  Also missing is
any recommendation on a workable venue for
homeowners to complete dispute resolution other
than the current pay-to-play Court system.     

Our most important concern is how this law will be
enforced.  Hopefully, this piece of legislation will not
repeat the weakness and ineffectiveness of all
Colorado HOA legislation:  weak and ineffective
means for enforcement from the homeowner’s
perspective.  In this case, DORA, not any trade
group or lawyers, should process complaints,
enforcement, and penalties.  Alternatively, a
process for mandatory binding out-of-court
mediation for most disputes.  This keeps dispute
resolution out of interest group/peer review
processes that are biased. Most importantly, this
allows homeowners to avoid our Court system that
is out of the financial reach of most homeowners.

No doubt about it the property management industry
is in dire need of clean-up.  Doing the right thing is
now in the hands of our legislatures to ensure
homeowner’s rights are the priority.