HB 10, sponsored by Delegate Beidle, proposes to regulate common ownership community managers, or property managers for certain condominium, co-op, and/or homeowners’ associations. Under this bill, property managers would have to complete training and an examination to obtain a license to manage these communities. Another part of this package is to create a State Board of Common Ownership Community Managers.
The Board established under this legislation may write regulations, standards, and procedures for property managers/boards and may set its own fees.
(A) TO QUALIFY FOR A LICENSE, AN APPLICANT SHALL BE AN INDIVIDUAL WHO:
(1) MEETS THE REQUIREMENTS OF THIS SECTION; AND
(2) MEETS ANY OTHER QUALIFICATION AS REQUIRED BY REGULATION OF THE BOARD.
The legislation also requires the, “contracting party”, a, “person who contracts to provide management services for a common ownership community” to provide,
(C) (1) A FIDELITY BOND OR INSURANCE FOR WHICH PROOF IS FILED UNDER THIS SECTION SHALL PROVIDE COVERAGE IN AN AMOUNT EQUAL TO THE LESSER OF:
(I) $2,000,000; OR
(II) THE HIGHEST AGGREGATE AMOUNT OF THE OPERATING AND RESERVE BALANCES OF ALL COMMON OWNERSHIP COMMUNITIES UNDER CONTRACT WITH THE CONTRACTING PARTY IN THE PRIOR 3 MONTHS.
Finally, this legislation restricts who may provide property management services to these common ownership communities,
EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A PERSON MAY NOT PROVIDE, ATTEMPT TO PROVIDE, OR OFFER TO PROVIDE MANAGEMENT SERVICES FOR A COMMON OWNERSHIP COMMUNITY IN THE STATE UNLESS ISSUED A LICENSE OR LIMITED LICENSE BY THE BOARD.
Fines and penalties (up to $5,000/3 years in prison) may be assessed and any penalty deposited into the general fund.
Hearing 1/30 at 1:00 p.m.
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