This week, Community Associations Institute hosts nearly 300 community association management company executives at its annual CEO-Management Company Retreat. During the event, I had the pleasure to share a legislative update with management company executives from across the United States and guests from Australia, Spain, and the United Arab Emirates.
CAI understands effective community management is crucial to the success of community associations. Public policies promoting transparency, professionalism, and fairness are essential to ensure community association management companies can provide the highest level of service. CAI is dedicated to advocating for policies that strengthen the community association industry. .
Of particular concern to the community association industry is growing interest in the licensing and regulation of community managers. Several states are considering proposals to license managers. CAI supports educated and competent community association managers who earned CAMICB or CAI credentials. CAI does not support mandatory state licensing of community associations.
In Other 2024 Legislative and Regulatory Activity:
- Colorado. A bill (HB 24-1078) to reinstate community association manager licensing, which had sunset in 2019, failed to pass.
- District of Columbia. A proposed law (B25-0639) would license community association managers as property managers under the real estate commission. The bill is awaiting a hearing.
- Hawaii. Two bills, SB 1203 and HB 298, which would require the licensing of community association managers, were opposed by CAI and failed. Another bill, SB 2726, proposing a study committee on the topic was introduced.
- Illinois. Regulatory changes from the Illinois Real Estate Division unintentionally impacted managers seeking the CMCA credential. CAI continues to work with the department to amend these regulations with a review expected in November.
- Maryland. HB 273, requiring community manager licensing but failing to recognize CAI credentials was successfully opposed and did not pass.
- New Jersey. A2450 would require community association manager licensing, but it does not comply with CAI policy. No significant legislative movement has been made.
- New York. S 663, like New Jersey’s bill, faces CAI opposition because it fails to recognize relevant credentials. It is not expected to pass before adjournment.
At the federal level, CAI supported H.R. 1477/S. 722, which would allow 529 savings funds to cover CMCA certification costs. While the bill gained bipartisan support, it is unlikely to pass this Congress. However, CAI has made progress in educating lawmakers about the bill and its impact on the industry.
Forecast for 2025. CAI anticipates continued legislative proposals in several key states including:
- Colorado. A renewed attempt to reintroduce manager licensing.
- District of Columbia. Movement on B25-0639 could occur.
- Maryland. Licensing proposals will likely return but will need adjustments to recognize CAI certifications.
- Minnesota. Policymakers continue to explore regulation and may introduce community manager licensing bills in 2025.
- New Jersey and New York. Both may see similar proposals resurface. Challenges remain regarding credential recognition.
Resale Disclosure Certificates, Estoppels, Lender Questionnaires, and Related Fees
CAI supports transparency and fairness in the preparation and issuance of resale disclosure certificates, estoppels, and other consumer protection-related information provided during a sale of a home in a community association. These documents are critical in real estate transactions, providing buyers and lenders with essential consumer-related information about a community association such as outstanding assessments, pending litigation, and financial stability.
Resale disclosure certificates, also known as estoppels, are essential documents in real estate transactions within homeowners’ associations and condominiums. The fees for preparing these documents vary by state and may include additional charges for expedited services.
Here is a summary of some states’ fee structures and caps for resale disclosures and estoppels:
Arizona. $400 with an additional $100 for expedited service (less than three days).
Connecticut. $185 plus $0.05 per page for physical copies and a $10 fee for electronic versions.
Delaware. $250 for disclosure packages.
Florida. $299, $179 if there is a delinquent account plus $199 expedite.
Idaho. Fees must be disclosed annually and no expedited fees are permitted.
Indiana. $250 for disclosure preparation.
Illinois. For HOAs, $100 with an expedited option costing up to $375. For condos, up to $375 with a $100 rush fee.
Kentucky. $225 for the initial package with a $50 fee for updates.
Maryland. $250 with a $100 rush fee for services under seven days or $50 for services within seven-14 days.
Nevada. $160 for regular service with a $125 expedited fee for service within three days.
New Mexico. $300 (Albuquerque caps this at $200).
North Carolina. $200 with a $100 rush fee for expedited services.
Rhode Island. $125 for a full disclosure package.
Texas. $375 for the standard package plus $125 for expedited services.
Virginia. $163.97 for physical copies or $136.64 for electronic versions with a $54.66 rush fee.
Washington. $275 for full disclosure packages.
Wisconsin. $50 unless a higher amount is authorized by a board resolution or specified in a management agreement.
Stay updated on 2025 legislative proposals, visit www.caionline.org/legislativetracking.
Addressing CAI failure in communities’ manager education and failing to meet HOA marketplace demands – suggestions.
The existing capacity of CAI to provide education for community managers and board members within the rapidly expanding homeowners association market is no longer sustainable. The number of graduates and their qualifications are insufficient to meet the growing demands of the industry. With 370,000 Homeowners Associations (HOAs) in the country and an additional 2,000 being created yearly, the CAI Managers International Certification Board (CAMICB) has only certified about 20,000 Certified Managers of Community Associations over the decades.
The current educational standards set by CAMICB are nonexistent or minimal. CAMICB is a community managers’ certificate mill and primarily serves as a revenue source for CAI. It is discriminatory because it does not offer financial aid due to its poor accreditation. CAMICB recruits candidates with limited educational backgrounds; a high school diploma is the only requirement, and having a criminal record does not disqualify them. After completing 16 hours of the online course, candidates must pass a 2.5-hour exam of 120 multiple-choice questions. The CAI provides an inconsistent or lack of continuing education program. Whatever random courses CAI offers lack the academic rigor to further community managers’ academic goals, especially since the credits are non-transferable.
For a successful CAMICB reform, CAI must consider collaborating with state departments of business & professional regulation, the Accrediting Commission of Career Schools and Colleges (ACCSC), and the Department of Education. This collaboration is crucial to ensure educational excellence and equal access for students of all ages, promoting inclusivity and diversity in the HOA industry.
Delegating CAI’s educational activities to accredited colleges is one option.
Such reform will ensure that candidates for HOA manager positions receive a high-quality education and achieve at least a bachelor’s degree in fields related to HOA management.
Am I the only CAI stakeholder posting on this blog?
Do none of the 470000 CAI members have any comments?
That seems very peculiar.
Private blogs are buzzing about CAI, HOAs, CTA, and CAI lawsuits against the Department of Treasury.
CAI blog reflects very well how out of touch with reality CAI is. CAI feels more like a dog-and-pony show than a serious organization.