2021 Legislative Report and 2022 Forecast

Last week, we discussed the main trends around occupational licensing legislation in addition to bills that were introduced this year and how they could influence licensing requirements for community association managers. CAI supports self-governance of the management profession that does not impose barriers for existing community managers or those who are new to the industry.

Self-governance allows education and assessments that observe the core competencies of the community association management profession—including CAI education courses and the Certified Manager of Community Associations (CMCA^Ò) examination—without interference from other professions and governmental agencies. Self-governance maintains an appropriate level of compliance requirements for management professionals through CAI’s Manager Code of Ethics and protects the investment of CAI members in the highest-quality education for community association managers.

2021 LEGISLATIVE ACTIVITY

Illinois: SB 636 extends the manager licensing requirement through January 1, 2031. The bill passed.

Maryland: HB 367 establishes a community association manager licensing board and program. The bill failed.

Michigan: HB 4549 amends the real estate license law to exempt property managers from licensing requirements. The bill is pending.

New Mexico: HB 230 amends the real estate license law to exempt community association managers from licensing requirements. The bill passed.

New Jersey:  A 493/S 3789 creates a licensing program for community association managers. The bill is pending.

New York: SB 2340 requires residential real property managers or any firm employing a property manager, contracting with a property manager, or contracting to provide a property manager to file a registration statement with the secretary of state and to be certified from an approved certifying organization. The bill failed.

2022 Manager Licensing Forecast

Colorado
The Department of Regulatory Agencies released its Manager Licensing Report and recommended sunrising the community association manager licensing requirements under the department. Several legislators in Colorado that have previously supported and pursued manager licensing have indicated they will introduce manager licensing legislation in 2022. CAI’s Colorado Legislative Action Committee (LAC) will monitor the legislative activity and remain in touch with legislators.

District of Columbia
CAI expects a manager licensing bill to be introduced. The Department of Real Estate continues to declare that community association managers are property managers and shall be licensed. CAI, community association lawyers, and community association managers generally disagree with the Department of Real Estate’s position. The District of Columbia LAC will monitor the legislation and pursue inclusion of the CMCA exam and credential, as appropriate, if the bill passes.

Maryland
CAI expects a manager licensing bill to be introduced. Manager licensing legislation has been introduced in the state for at least the past 10 years. The Maryland LAC will monitor the legislation and pursue inclusion of the CMCA exam and credential, as appropriate, if the bill passes.

New Mexico
In 2019, the New Mexico Real Estate Commission passed regulation that expands the real estate broker’s license to community association managers. In 2020, legislation passed that excludes community association managers from being required to hold a real estate broker’s license. CAI has appealed to the New Mexico Real Estate Commission on behalf of CAI manager members in the state to repeal the rule expanding the licensing requirements to community association managers. A hearing on the matter has been postponed for the past four months. CAI continues to wait for a hearing date on the appeal request.

New Jersey
CAI expects a manager licensing bill to be introduced. Manager licensing legislation has been introduced in the state for the past six to eight years. The New Jersey LAC will monitor the legislation and pursue inclusion of the CMCA exam and credential, as appropriate, if the bill passes.

New York
CAI expects a manager licensing bill to be introduced. Manager licensing legislation has been introduced in the state for at least the past 10 years. The New York LAC will monitor the legislation and pursue inclusion of the CMCA exam and credential, as appropriate, if the bill passes.

For a full list of manager licensing laws and to stay up to date on legislative proposals, visit www.caionline.org/managerlicensing.