CAI encourages the national certification of community association managers. In states that propose mandatory regulation of community association managers, CAI will support a regulatory system that incorporates adequate protections for homeowners, mandatory education, and testing on fundamental management knowledge, standards of conduct and appropriate insurance requirements. CAI opposes the licensing of community association managers as real estate brokers, agents or property managers.
This resource center will provide state-specific information on enacted manager licensing/registration/certification/standards laws and pending legislation. It will also provide guidance and resources for those members and states that are discussing this issue.
Synopsis of Current State Laws:
Alaska
California
Connecticut
District of Columbia
Florida
Georgia
Illinois
Kentucky
Nevada
Virginia
Under Chapter 88 of the Alaska Real Estate Commission's regulation entitled "Real Estate Statutes and Regulations' Real Estate Brokers and Other Licensees," a person may not collect fees for community association management or practice or negotiate for a contract to practice community association management unless licensed as a real estate broker, association real estate broker, or real estate salesperson in this state (Chapter 88, Article 02, Section 08.88.161.(5) and (6)). A person can qualify for a limited license to practice community association management by obtaining an associate broker license if, at the time of issuance, the person is employed by a broker (Sec. 08.88.171.(e-f)). 
Real Estate Commission Statutes and Regulations
As approved by the Governor September 26, 2007 AB 691 (Chapter 236) reauthorizes for another five years its voluntary Manager Certification Titling Act, modifying the requirements needed to be called a "certified common interest development manager." Additionally, under SEC. 4. Section 11502 of the amended Business and Professions Code, the continuing education courses required for a manager to call herself/himself a "Certified CID Manager" are preserved.
This Act will remain in effect until January 1, 2012.
The Connecticut Legislature has amended a number of provisions of the state's Condominium and the Common Interest Ownership Acts, as well as the provisions of the Connecticut statutes governing the registration of managers, effective on October 1, 2007. Among other provisions, SB 1089 (Public Act No. 07-243) amends the provisions that govern the registration of property managers, and broadens the range of people that must register with the Department of Consumer Protection ("Department").
Prior to October 1, 2007, a management company was required to register with the Department, but the individual managers or other employees of that company were not required to register. However, the Department interprets the amended requirements to be much broader. According to the Department, these amendments require anyone who provides management services, as defined by Section 20-450, including any partner, director, officer, or employee of a management company, to register individually.
Section 20-450 defines management services as any one of the following:
- Collecting, controlling, or disbursing funds of the association or having authority to do so.
- Preparing budgets or other financial documents for the association.
- Assisting in the conduct of or conducting association meetings.
- Advising or assisting the association in obtaining insurance.
- Advising the association in the overall operations of the association.
Section 20-450 states that professionals who are licensed by the state, such as attorneys, are exempt from having to register. An officer or director is also exempt, so long as he or she does not control more than two-thirds of the voting power in the association. However, under the Department's broad interpretation, anyone else who provides any of the listed management services must register.
Statute for Manager Registration Requirement
Manager Registration Form
The Real Estate Board of the District of Columbia's Department of Consumer and Regulatory Affairs regulates community association managers as commercial "property managers." Unless licensed as such by the District of Columbia, no person shall use the term or words "property manager" to imply that he or she is licensed as a property manager in the District.
A person is eligible for licensure as a property manager, if the person:
- Is able to read, write, and understand the English language
- Has passed the property managers' examination
- Is a high school graduate or the holder of a high school equivalency certificate
- Has not had an application for a property's manager's license denied for reasons other than failure to pass the required examination or examinations, in the District or elsewhere within one year prior to the date on which the application is filed
- Has not had a property manager's license suspended in the District or elsewhere which suspension is still in effect on the date on which his or her application is filed
- Has not had a property manager's license revoked in the District or elsewhere within three years prior to the date on which his or her application is filed
There are no pre-licensing requirements for property managers. All real estate licensees are required to complete 15 hours education as determined by the Real Estate Board. The examination utilized for licensure of "property managers," does not measure the core competencies of community association managers.
Florida's Department of Business and Professional Regulation ("Department"), through the Regulatory Council of Community Association Managers, regulates the licensure of community association managers under Chapter 468, Part VIII, Florida Statutes and Chapter 61-20, Florida Administrative Code. In most circumstances, community association managers in Florida are required to be licensed in order to carry out their duties as a manager.
If someone provides management services for an association with more than 10 units, or a budget of $100,000 or greater, and receives compensation for those services, a Community Association Manager license is required. The threshold from 50 units to 10 units is a recent change that became effective October 1, 2008 when Governor Charlie Crist signed into law House Bill 995 which sets forth this requirement (see CAM FAQs at: http://www.myflorida.com/dbpr/pro/cam/documents/cam_faq.pdf).
Effective January 1, 2009, all Community Association Management Firms responsible for the management of more than 10 units or a budget of $100,000 or greater, must be licensed by the Department to provide association management services.
House Bill 995 also requires management firms to be licensed effective January 1, 2009. Applications are available on the website. For specifics, review frequently asked questions relative to the licensing of management firms at the following link: http://www.myflorida.com/dbpr/pro/cam/faq.html. Licenses will be renewed on September 30 of odd numbered years. For management firms receiving licenses prior to September 30, 2009, the licenses will be valid through September 30, 2011. All management firms currently registered with the department will be required to be licensed by September 30, 2009. Additionally, each management firm seeking licensure with the department must designate at least one CAM who will respond to inquiries from and investigations by the department. If the management firm does not employ at least one licensed CAM, the management firm’s license will be invalid during that time period.
A community association manager is defined as: a person who is licensed to perform community association management services including the following:
- Practices requiring substantial specialized knowledge, judgment, and managerial skill when done for remuneration;
- Controlling or disbursing funds of a community association;
- Preparing budgets or other financial documents for a community association;
- Assisting in the noticing or conduct of community association meetings;
- Coordinating maintenance for the residential development and other day-to-day services involved with the operation of a community association.
A person who performs clerical or ministerial functions under the direct supervision and control of a licensed manager or who is charged only with performing the maintenance of a community association and who does not assist in any of the management services described above is not required to be licensed.
Licensing applicants are required to:
- Be at least 18 years of age
- Have successfully completed all pre-licensure education requirements
- Satisfactorily completed a minimum of 18 in-person classroom hours of instruction within 12 months prior to the date of examination
- Be of good moral character as defined in Florida administrative code
- Take and pass the licensure examination
- File a complete set of fingerprints that have been taken by an authorized law enforcement officer
A Community Association Management Business Entity must register:
61-20.003 
Business Entity Registration.
(1) A corporation, association or other organization or entity that engages in, or is desirous of engaging in, the business of community association management shall be registered under this rule and shall employ only licensed persons in the direct provision of community management services. Such entities shall, no later than October 1, 1988, register with the division, on a BPR form 33-008, COMMUNITY ASSOCIATION MANAGEMENT BUSINESS ENTITY REGISTRATION, incorporated herein by reference and effective 2-5-91.
(2) No entity described in subsection (1) above may, subsequent to October 1, 1988, conduct association management business or use its name in the conduct of its business without first registering with the division.
(3) There shall be no fee required to register an entity with the division. Once an entity is registered, no renewal of the registration is required, and the registration shall be deemed valid unless suspended or revoked pursuant to Section 468.436, F.S., or Rule 61-20.503, F.A.C.
(4) As officers or licensed personnel or the business address change, the division shall be notified on BPR form 33-008, Community Association Management Business Entity Registration, within 60 days of such change.
The Department has a Q&A for frequently asked questions.
Community association managers (CAMs) must be licensed under the Georgia Real Estate Commission, Chapter 40 REAL ESTATE BROKERS AND SALESPERSONS, in order to function as a community association manager in the state:
(4.2)"Community association management services" means the provision, for a valuable consideration, to others of management or administrative services on, in, or to the operation of the affairs of a community association, including, but not limited to, collecting, controlling, or disbursing the funds; obtaining insurance, arranging for and coordinating maintenance to the association property; and otherwise overseeing the day-to-day operations of the association.
(4.3)"Community association manager" means a person who acts on behalf of a real estate broker in providing only community association management services.
Individuals must be at least 18 to be licensed as a community association manager, and applicants for the CAM exam must complete educational course hours; there are no experience requirements for a community association manager's license. Reports are that the CAM tests focuses more on knowledge of real estate issues and law, as opposed to more of the critical competency areas of managing community associations, although CAI advocates that managers be tested and regulated on the core functions associated with managing community associations, and not as property managers, brokers, or real estate licensees.
The Commission may require that each broker who provides community association management services under this chapter and who collects, controls, has access to, or disburses community association funds shall at all times provide or be covered by a fidelity bond or fidelity insurance coverage protecting the community associations being managed by the broker against loss of any funds belonging to those community associations being held or controlled by the broker.
After years of discussions, coalition building, and drafting language, the Illinois Community Association Manager Act, SB 1579, was approved by Governor Patrick Quinn and became law on August 25, 2009 as Public Act 96-0726.
The Illinois Legislative Action Committee, with support from CAI and NBC-CAM, led the initiative to establish important consumer protections, set professional standards for managers, and distinguish the unique role managers play in community associations.
Background
Senate Bill 1579 follows a continuing collaborative effort with the realtors lobby on a codification of an association managers standards of professionalism and financial responsibility law (effective January 1, 2008; Public Act 095-0318; House Bill 1071). Background on that bill can be found at this link.
Key Provisions
A brief Illinois Manager Licensing FAQ sheet about this new law has been developed to help members better understand key provisions.
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This law becomes effective July 1, 2010. At that time, the State will appoint a Community Association Manager Licensing and Disciplinary Board (Board) to develop regulations to fully implement the requirements of the Act. Twelve months after the regulations are adopted, individuals will be unable to provide services as association managers without a state license. At this time, the earliest this requirement is likely to be effective will be July, 2011.
This law creates minimum qualifications for licensure, provides financial security to associations, imposes discipline for manager misconduct, and requires continuing education to renew a license.
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Community Association Manager is defined as an individual who administers for remuneration the financial, administrative, maintenance, or other duties for the community association, including the following services:
(A) Collecting, controlling or disbursing funds of the community association or having the authority to do so
(B) Preparing budgets or other financial documents for the community association
(C) Assisting in the conduct of community association meetings
(D) Maintaining association records
(E) Administrating association contracts, as stated in the declaration, bylaws, proprietary lease, declaration of covenants, or other governing document of the community association
"Community association manager" does not mean support staff, including, but not limited to bookkeepers, administrative assistants, secretaries, property inspectors, or customer service representatives.
"Community Association Management Agency" means a company, firm, corporation, limited liability company, or other entity that engages in the community association management business and employs, in addition to the licensee-in-charge, at least one other person in conducting such business.
(a) This Act does not apply to any of the following:
(1) Any director, officer, or member of a community association providing one or more of the services of a community association manager without compensation for such services to the association.
(2) Any person providing one or more of the services of a community association manager to a community association of 10 units or less.
(3) A licensed attorney acting solely as an incident to the practice of law.
(4) A person acting as a receiver, trustee in bankruptcy, administrator, executor, or guardian acting under a court order or under the authority of a will or of a trust instrument.
(5) A person licensed in this State under any other Act from engaging the practice for which he or she is licensed.
(b) A person may act as, or provide services as, a community association manager without being licensed under this Act if the person
(i) is a community association manager regulated under the laws of another state or territory of the United States or another country and
(ii) has applied in writing to the Department of Financial and Professional Regulation (“Department”), on forms prepared and furnished by the Department, for licensure under this Act, but only until the expiration of six months after the filing of his or her written application to the Department, his or her withdrawal of the application, he or she has received a notice of intent to deny the application from the Department, or the denial of the application by the Department.
The examination and initial education requirement … shall not apply to any person who within six months from the effective date of the requirement for licensure, as set forth in Section 170, applies for a license by providing satisfactory evidence to the Department of qualifying experience or education, as may be set forth by rule, including without limitation evidence that he or she has
(i) Practiced community association management for a period of five years or
(ii) Achieved a designation awarded by recognized community association management organizations in the state.
The Act also recognizes continuing education credits for those persons who take courses to maintain their professional real estate license.
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A Community Association Manager Board (“Board”) consisting of seven members will be appointed by the Secretary [of the Department]. Five members of the Board must be licensees under this Act, except that, initially, these members must meet the qualifications for licensure and have obtained a license within six months after the effective date of this Act. Two members of the Board shall be owners or shareholders of a unit in a community association at the time of appointment who are not licensees under this Act and have no direct affiliation or work experience with the community association manager. This Board shall act in an advisory capacity to the Department of Financial and Professional Regulation.
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Section 40, detailing the qualifications for licensure as a community association manager, includes a requirement of at least 20 classroom hours in community association management courses approved by the Board.
(a) A community association manager or the Community Association Management Agency with which he or she is employed shall not have access to and disburse funds of a community association unless each of the following conditions occur:
(1) There is fidelity insurance in place to insure against loss for theft of community association funds.
(2) The fidelity insurance is not less than all moneys under the control of the community association manager or the employing Community Association Management Agency for the association.
(3) The fidelity insurance covers the community association manager and all partners, officers, and employees of the Community Association Management Agency with whom he or she is employed during the term of the insurance coverage, as well as the association officers, directors, and employees.
(4) The insurance company issuing the fidelity insurance may not cancel or refuse to renew the bond without giving at least 10 days' prior written notice.
(5) Unless an agreement between the community association and the community association manager or the Community Association Management Agency provides to the contrary, the Association secures and pays for the fidelity insurance. The community association manager and the Community Association Management Agency must be named as additional insured parties on the association policy.
(b) A community association manager or Community Association Management Agency that provides community association management services for more than one community association shall maintain separate, segregated accounts for each community association or, with the consent of the association, combine the accounts of one or more associations, but in that event, separately account for the funds of each association. The funds shall not, in any event, be commingled with the community association manager's or Community Association Management Agency's funds. The maintenance of such accounts shall be custodial, and such accounts shall be in the name of the respective community association or community association manager or Community Association Management Agency as the agent for the association.
(c) The community association manager or Community Association Management Agency shall obtain the appropriate general liability and errors and omissions insurance, as determined by the Department, to cover any losses or claims against community association clients.
The Department may issue a license as a licensed community association manager, without the required examination, to an applicant licensed under the laws of another state if the requirements for licensure in that state are, on the date of licensure, substantially equal to the requirements of this Act or to a person who, at the time of his or her application for licensure, possessed individual qualifications that were substantially equivalent to the requirements then in force in this State. An applicant under this Section shall pay all of the required fees.
The regulation and licensing of community association managers and Community Association Management Agencies are exclusive powers and functions of the State. A home rule unit may not regulate or license community association managers and Community Association Management Agencies. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.
This law will come up for review (sunset) on January 1, 2020.
In a letter to Illinois members from Mark D. Pearlstein, Chairman of the Illinois Legislative Action Committee, Mr. Pearlstein acknowledged the members and coalition partners responsible for this passage and stated:
This is a historic day for the Illinois Chapter of CAI and the community association industry. Every member of CAI should be proud of the collaborative effort to enhance the management profession and protect the most valuable investment of community association members.
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Illinois Manager Licensing Law Likely This Year (6/09)
The hard work and efforts of the Illinois Legislative Action Committee paid off last week when both chambers of the Illinois Legislature passed the (Illinois) Community Association Manager Act in a final vote May 30, 2009. Next step: the Governor's consideration.
Effective January 1, 2008, Illinois community association managers are required (Public Act 095-0318; House Bill 1071) to maintain standards of professionalism and financial responsibility.
The law protects association boards and owners whose managers administer association funds and maintain association property. The Act creates a new Section 18.7 of the Illinois Condominium Property Act, setting standards for community association managers; it applies to managers of condominiums, cooperatives, town homes, or homeowner associations:
- Managers are individuals who administer for compensation financial, administrative, maintenance, or other duties called for in a management contract, including individuals who are direct employees of a community association (but does not include support staff such as bookkeepers, secretaries, etc.).
- Managers must be 21 and a citizen or legal permanent resident of the United States.
- Managers shall not have been convicted of forgery, embezzlement, obtaining money under false pretensions, etc.
- Managers shall have a working knowledge of the fundamentals of community association management.
- Managers must cooperate with any law enforcement agency in the investigation of a management complaint and produce any materials in their possession or control in management transition.
- Managers will not have sole and exclusive access to and disburse association funds unless there is a fidelity bond in place. The amount of the bond must not be less than all monies of that association. The bond covers the managers and all partners, officers and employees of the management firm.
- Managers shall maintain separate, segregated accounts for each community association they manage.
Through 2009 amendments to HB 401, a bill introduced by the Kentucky Real Estate Commission (KREC), community association managers and the management of condominium, townhome, and homeowner associations are excluded from the jurisdiction of the KREC. Signed by the governor March 20, 2009 and officially effective July 1st, 2009, the amendment became law as section KRS 324.2812:
324.2812 Limitation of commission's jurisdiction.
Nothing in this chapter or the administrative regulations promulgated under the authority of this chapter shall extend the jurisdiction of the Kentucky Real Estate Commission to community association managers and the management or business activities of not-for-profit community associations, which includes townhouse, condominium, homeowner, or neighborhood associations.
Effective: June 25, 2009
History: Created 2009 Ky. Acts ch. 58, sec. 15, effective June 25, 2009.
CAI's Heads-Up has more information and background on the history of how this exemption came to be.
The Commission for Common-Interest Communities adopts regulations governing the practice of community association managers; the Commission is within the Real Estate Division of the Nevada Department of Business and Industry. Chapter 116A Regulation of Community Managers and Other Personnel prohibits a person from acting as a community manager without certification:
"Community manager" is defined (NRS 116A.070, effective January 1, 2008) as a person who provides for or otherwise engages in the management of a common-interest community or the management of an association of a condominium hotel.
"Management of a common-interest community" means (NRS 116A.110) the physical, administrative or financial maintenance and management of a common-interest community, or the supervision of those activities, for a fee, commission or other valuable consideration.
Applicants seeking certification as a community association manager must:
- Have successfully completed at least 60 hours of instruction in courses in the management of a common-interest community that has been approved by the Commission
- Have engaged in the management of a common-interest community or has held a management position in a related area for at least 12 months preceding the date of application
- Pass an examination with a minimum score of 75 percent
- Submit two fingerprint cards completed at an authorized law enforcement facility
Both community association management and Nevada-specific law comprise the education requirements for this certificate, and CAI's Essentials of Community Association Management M100 course is one way to meet the required community association management provision.
Draft Regulations for Manager Licensing in Virginia Have Been Issued (7/09)
In 2008, Virginia implemented a statutory based manager certification, management company licensing program. As part of that program, the Common Interest Community Board (CICB) was charged with drafting regulations to clarify and assist with implementation of the new law. On June 22, 2009 the CICB published proposed regulations to provide additional clarification to the state’s licensure requirements. Once finalized, these regulations will become part of the permanent regulatory requirements governing licensing, replacing the initial set of emergency regulations. CAI, on behalf of its members, will submit comments on these regulations. Interested members are encouraged to review the proposed regulations and to submit any comments to CAI.
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Virginia's Common Interest Community Board (CICB) has released the application for provisional licenses for common-interest community management firms operating in the state. Firms falling under Virginia's manager licensing law must complete and return the now available CIC Manager Provisional App (application) to the CICB no later than December 31, 2008. CAI's guidance and resources, including a Virginia Manager Licensing FAQ, are posted. 11/08
Virginia's Common Interest Community Board appointees have been named, and the Board's first meeting is scheduled for September 4, 2008. Read more... 8/08
Virginia's professional community association managers licensing bill, HB 516 (Chapter 851), was approved by Governor Kaine on 4/23/08, and is effective July 1, 2008.
VIRGINIA LICENSING FAQ
November 13, 2008
What does the Virginia licensing law require?
The Virginia manager licensing law was passed by the Virginia legislature and enacted into law on July 1, 2008. The law requires that any person or entity engaged in community management services in Virginia to acquire a license and for certain managers within those companies to be certified.
Who is required to hold a license under Virginia law?
Under the Virginia Code, any company engaged in common interest community management services must be licensed to do Virginia. A company or firm is defined as any sole proprietorship, association, partnership, corporation, Limited Liability Company, limited liability partnership or any other form of business organization recognized under the laws of Virginia.
Who is not covered by the license law?
Any person performing community management services as an unpaid volunteer, employee of a licensed manager, a direct employee of an association, a receiver or trustee in a bankruptcy proceeding, an attorney or accountant providing professional services related to their field, timeshare agents/exchange companies. The complete list of exemptions may be found under section 54.1-2347 of the Act.
What does Virginia consider management services for the purposes of licensing?
According to the law, "management services" means any of the following activities:
- Acting with the authority of an association in its business, legal, financial, or other transactions with association members and non members.
- Executing the resolutions and decisions of an association or with the authority of the association, enforcing the rights of the association secured by statute, contract, covenant, rule or bylaw.
- Collecting, disbursing, or otherwise exercising domain or control of money or other property belonging to an association.
- Preparing budgets, financial statements, or other financial reports for an association.
- Arranging, conducting or coordinating meetings of an association or the governing body of an association.
- Negotiating contracts or otherwise coordinating or arranging for services or the purchase of property and goods for or on behalf of an association
OR
- Offering or soliciting to perform any of the aforesaid acts or serves on behalf of an association.
What is required of my company at this time?
Community management firms must make application for a provisional license no later than December 31, 2008. Provisional licenses will be valid until June 30, 2011.
Section 543.1-2346 F the statute requires that community management firms "make an application" for a provisional license prior to January 1, 2008. As it is unclear what the clause "make an application" means in this context, CAI advises applicants to assume that the CICB will require provisional license applications to be received in their office no later than December 31, 2008.
What information is required on the provisional licensing application?
The provisional licensing CIC Manager Provisional App (application) requires detailed information and disclosures by companies. These disclosures include:
- Business name and trade/fictitious name
- Company address and contact information
- Evidence of blanket fidelity bond or employee dishonesty insurance
- Information on a designated responsible person
- A list of the firm's principals
- Disclosure of licenses in other states and jurisdictions
- Disclosure of any felony, misdemeanor or disciplinary actions against the firm, principals or responsible person.
- Disclosure of any outstanding past due debts, defaults, bonds, tax obligations, or pending or past bankruptcies.
- Payment of a $250 application fee
- A $25 payment to the recovery fund
- Payment of an annual assessment fee of 0.02% of manager's gross receipts or $1,000 whichever is less.
What additional requirements may impact my provisional license application?
Corporate filings:
All corporations and limited liability companies (including out of state firms) that conduct business in Virginia must register with the Virginia State Corporation Commission prior to applying for license.
For non-corporate business entities that are trading under a fictitious name, a copy of a certificate filed with the clerk of the court in the jurisdiction where business is being conducted is required as an attachment to the provisional license application.
Fidelity bonding or employee dishonesty insurance
As part of the provisional licensing application, companies must submit evidence of either a blanket fidelity bond or an employee dishonesty insurance policy.
The bond or insurance policy must provide coverage in the amount of either $2 million or the aggregate amount of the operating and reserve balances of all associations under the control of the community manager during the prior fiscal year. Firms may choose the lesser of these two options.
When is the application for provisional licenses due?
Section 543.1-2346 F the statute requires that community management firms "make an application" for a provisional license prior to January 1, 2008. As it is unclear what the clause "make an application" means in this context, CAI advises applicants to assume that the CICB will require provisional license applications to be received in its office no later than December 31, 2008.
CAI has sent the CICB a letter of inquiry asking for clarification on this matter.
When can I expect a confirmation or follow up on my application?
Applicants will be notified within 30 days if the Board deems the application is incomplete. Firms will have 12 months to correct any deficiencies in the application.
What happens if I do not obtain a provisional license?
If a community management firm does not apply for a provisional license by January 1, 2009, it will not be able to legally manage community associations in Virginia and will be required to comply with the full licensing requirements.
The full licensing requirements, which become effective January 1, 2009. The requirements include:
- Companies must hold an active Accredited Association Management Company (AAMC) credential from Community Associations Institute (CAI).
- Applicants unable to meet the requirements of an AAMC may be licensed by the CICB provided they submit proof that at least one full-time employee or officer involved in all aspects of services offered by the firm and a majority of persons in a supervisory capacity meets one of the following:
- Holds an active Professional Community Association Manager (PCAM) designation plus proof of active community management in the past 12 months.
- Is a Certified Manager of Community Associations (CMCA) from the National Board of Certification for Community Association Managers (NBC-CAM) plus proof of five (5) years community management experience, 12 months of which must immediately precede the application filing.
- Is a designated Association Management Specialist (AMS) and provides proof of five (5) years of community management service 12 months of which must immediately precede the application.
- Has completed a training program and certifying examination approved by the CICB.
How long is my provisional license good for?
Provisional licenses will expire June 30, 2011.
What will be the requirements for my company after my provisional license expires in 2011?
When a covered firm's provisional license expires in 2011, it will be required to be in full compliance with licensing requirements. This will require that:
- Companies must hold an active Accredited Association Management Company (AAMC) credential from Community Associations Institute (CAI).
- Applicants unable to meet the requirements of an AAMC may be licensed by the CICB provided they submit proof that
- At least one full-time employee or officer involved in all aspects of services offered by the firm and a majority of persons in a supervisory capacity meets one of the following:
- Holds an active Professional Community Association Manager (PCAM) designation plus proof of active community management in the past 12 months.
- Is a Certified Manager of Community Associations (CMCA) from the National Board of Certification for Community Managers (NBC-CAM) plus proof of five (5) years community management experience 12 months of which must immediately precede the application.
- Is a designated Association Management Specialist (AMS) and provides proof of five (5) years of community management service 12 months of which must immediately precede the application.
- Has completed a training program and certifying examination approved by the Common Interest Community Board.
- Companies must carry a blanket fidelity bond or an employee dishonesty insurance policy. Bond insurance policy must provide coverage in the amount of either $2 million or the aggregate amount of the operating and reserve balances of all associations under the control of the common interest community manager during the prior fiscal year. Firms may choose the lesser of these two options.
Who is required to have a certification under the act?
In addition to requiring a company to hold a license, the law also requires that certain managers within the firm carry a certification. Section 54.1-2349(A)(3) requires that the CICB ensure certification of "managers who have principle responsibility for management services provided to a common interest community or who have supervisory responsibility for employees who participate directly in the provision of management services to a common interest community."
Such certification can include:
- A Certified Manager of Community Associations (CMCA) issued by the National Board of Certification for Community Association Managers (NBC-CAM).
- An Association Management Specialist (AMS) designation issued by the Community Associations Institute (CAI).
- A Professional Community Association Manager (PCAM) designation issued by the Community Associations Institute (CAI).
- The successful completion of another CICB approved training program and certifying examination
OR
- Successful completion of a Virginia testing program.
Critical Dates:
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November 13, 2008 |
Provisional license applications released |
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December 2, 2008 |
Meeting of the CICB in Richmond. Public comments being accepted regarding emergency (temporary regulations) |
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December 31, 2008 |
Provisional applications must be received by the CICB |
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January 1, 2009 |
Full licensing requirements effective for those without provisional licenses |
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February 1, 2009 |
CICB deadline for notifying provisional licensing applicants of deficiencies in applications |
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June 30, 2011 |
Provisional licenses expire |
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Where can I find additional information on the Virginia law and compliance?
CAI and NBC-CAM Resources to Help with This New Law
CAI and NBC-CAM are preparing grandfather programs and discount programs for educational courses, designation, and certification fees to make it easy and less expensive for CAI members and CMCAs to obtain their Virginia license.
We are working with our network of insurance agents to advise them of the new requirements, and will work with them to offer the appropriate coverage to fulfill the bonding requirement of the licensure program.
Other Provisions
The law implementing manager licensing also contains other provisions beyond manager licensing. Some of the key provisions are below.
What does the new law mean for Associations?
- Common interest communities subject to the new law include Property Owners' Associations, Condominium Associations, and Cooperative Associations. If your community has a governing body, collects mandatory assessments, and maintains common areas (such as a lake or playground), it likely falls under the new law.
- In addition to the existing annual report requirement and fee, Associations must pay an annual assessment of 0.02 percent of their annual gross assessment income, plus a one-time $25 assessment to finance the Recovery Fund.
- Property Owners Associations and Condominium Associations must obtain a blanket fidelity bond/employee dishonesty insurance policy (minimum coverage of $10,000; $1 million maximum).
- Associations must provide documents and records to the Ombudsman upon request, in order to assist members with using the complaint process.
- Associations must establish reasonable procedures for resolution of written complaints, including:
- Maintaining records of each complaint for at least one year after acting on complaint;
- Providing complaint forms/written procedures to individuals wishing to file written complaints; and
- Informing Association members of their right to file a Notice of Adverse Decision with the Ombudsman.
What is the Common Interest Community Board and what will it do?
- Common Interest Community (CIC) Board is composed of 11 members appointed by the Governor:
- 3 CIC Managers;
- 1 attorney who represents Associations;
- 1 Certified Public Accountant (CPA) who provides services to Associations;
- 1 timeshare industry representative;
- 2 developers of Associations; and
- 3 citizens (one who serves on Association governing body and two Association residents).
- CIC Board promulgates regulations, in accordance with Administrative Process Act, to:
- Establish fees, procedures and qualifications for licensure;
- Establish educational and training criteria for licensure and certification; and
- Establish standards of conduct for licensees.
- CIC Board may not intervene in the internal activities of Associations, unless necessary to prevent or remedy violations of regulatory requirements or statutes.
- CIC Board is authorized to bring suit and intervene in court actions where it appears an Association or Manager has violated Board regulations or statutes governing common interest communities (Property Owners' Association Act, Condominium Act, Cooperative Act, or Timeshare Act). CIC Board also may issue cease-and-desist orders against Association governing bodies.
- CIC Board may impose a monetary penalty of up to $1,000 per violation against any person or firm—licensed or unlicensed—who violates its statutes or regulations. Before issuing any monetary penalty, the CIC Board must grant the person or firm the opportunity for a hearing pursuant to the Administrative Process Act.
- CIC Board enforces its own statutes and regulations, except in the case of real estate licensees who also are licensed as CIC Managers. The Virginia Real Estate Board will retain enforcement jurisdiction over licensed real estate brokers/salespersons who are simultaneously licensed as CIC Managers.
- CIC Board promotes research on CIC topics and supports seminars and educational programs designed to improve understanding about Associations.
What will the Ombudsman do?
- Assist individuals in understanding and exercising their rights in resolving issues with their Associations.
- Receive complaints—Notices of Adverse Decision—from individuals who allege an Association governing body violated legal requirements (statutes, regulations, or Association governing documents). Notices must be filed within 30 days of the final adverse decision, must be submitted in writing on Board forms, must include supporting documentation, and must include a $25 filing fee (CIC Board may waive for demonstrated hardship).
- Maintain data on inquiries, requests for assistance, complaint notices, and resolution of disputes.
- Issue non-binding explanations of laws and regulations governing Associations. In addition, DPOR Director may determine whether an Association's final adverse decision complies or conflicts with legal requirements—such Director's determination is final but non-binding.
- Offer referrals to alternative dispute resolution services.
What is a Receiver? What is the Recovery Fund?
- CIC Board may petition the court to appoint a receiver if a CIC Manager appears unable to discharge its fiduciary responsibilities to an Association. Court-appointed receiver may take action to protect Association interests, including exercising control of all bank accounts. CIC Board also may petition court for an injunction to prohibit CIC Manager from withdrawing association monies or disposing of association assets.
- The Common Interest Community Management Recovery Fund is a trust fund used to pay court-appointed receivers and to restore Association monies in the event a CIC Manager fails to discharge its fiduciary responsibilities.
- The Recovery Fund is financed by $25 from each licensed CIC Manager upon initial licensure, plus $25 paid once from Associations. The law requires a minimum Fund balance of $150,000 by July 1, 2011. If necessary to meet the minimum balance requirements, the CIC Board may impose special assessments on each Association and licensed CIC Manager.
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