The Common Interest Community Manager Licensing Act is close to being law: What does it mean for you? As many people already know, the Act provides for the licensing of common interest community managers, but what you may not know is that it also creates a Common Interest Community Board, provides accounting and insurance requirements and mandates continuing education. Below are answers to a list of frequently asked questions.
Question: Who will be on the Common Interest Community Board? The Board will consist of nine members:
- One member from the department in the Executive Branch of State Government, appointed by the Governor;
- Two public members appointed to represent the interests of the public; and
- Six members who have been actively engaged in providing management services for at least five years immediately preceding their appointment (after the first Board is appointed, the six members must be licensed common interest community managers).
Question: Who does not have to be licensed?
- An officer or member of a community association;
- An attorney representing an association;
- Real estate broker, broker-salesperson or salesperson;
- Certified public accountant, professional engineer, insurance agent or broker, or any other person in any other related profession requiring registration, certification or licensure by the State, who is acting within the scope of practice of his profession
- An employee performing clerical or ministerial functions;
- An employee solely performing accounting services;
- An employee whose sole participation is to assist a common interest community manager in the preparation of budgets, financial statements or other financial reports;
- A person who acts solely in the role of a superintendent for, or providing maintenance services to, a common interest community;
- A person who acts as a receiver; and
- A declarant.
Question: What are the requirements necessary to be eligible to be licensed as a common interest community manager?
- Be of good moral character
- Be at least 18 years of age; and
- Have completed a training program approved by the board and successfully passed an examination or have passed an examination that is developed in accordance with national standards accredited by the National Commission for Certifying Agencies.
Question: What if I have been a manager for many years? Do I still have to apply and meet the same standards as new managers? For 180 days after the application process has been opened, a manager may pay a fee to the Board and submit a written application and that manager will be licensed, so long as he or she is of good moral character, has been actively engaged in providing management services for at least 12 months and successfully completes a training program and examination that is the same or substantially similar to what is required by the Act.
Question: What are the requirements for handling association funds? The Act goes into more detail, but generally speaking, if a manager/management company controls, collects, has access to, or disburses association funds, the manager or management company (1) must have a policy of employee dishonesty insurance in place; (2) must either maintain separate, segregated accounts for each association or, with the consent of the association, combine the account of one or more associations, but separately accounts for the funds of each association; and (3) must obtain the appropriate general liability and errors and omissions insurance to cover any losses or claims against community association clients.
Question: How often do I have to renew my community interest community manager license? All licenses shall be issued for a two-year period and shall be renewed upon filing of a renewal application within thirty days of the license expiring, the payment of a licensure fee and presentation of satisfactory evidence that the renewal applicant has successfully completed the continuing education and insurance requirements. If the renewal application is not made within thirty days after the expiration of the license, the applicant may be required to be reexamined and may not act as a manager until licensed.
Question: What are the continuing education requirements? The Board, once created, will establish standards for continuing education, but the number of credits will not exceed 18 credit hours biennially and at least three credit hours will be required to be in professional practice ethics.
Question: When will this Act take effect? The Act will take effect as soon as it is signed into law, but managers will have 360 days following the creation of the Board to get licensed.