SIDE STREETS: HOA industry asks state to license, regulate association managers

Michelle Green has worked in the homeowners association management business 15 years. It’s more than just a job enforcing covenants, collecting dues and hiring maintenance and landscaping crews.

Green has devoted money and many personal hours to taking classes and getting certified by an industry peer review group, in various aspects of the business. She’s proven her proficiency at record-keeping, handling financial statements, understanding insurance policies, navigating government regulations of HOAs and more.

In fact, this week she’s mailing in her final exam for grading as she tries to earn certification as a Professional Community Association Manager, or PCAM, from the Community Associations Institute, a nationwide umbrella group for managers like her. Achieving PCAM status is the pinnacle of HOA management.

So it bothers her that a lot of people out there seem to wake up one morning and decide they are HOA managers and start trying to run large associations.

“Anybody can hang a shingle on the door and call themselves a management company with no previous experience,” Green said. “They’ve got the checkbooks for the associations. They are doing the financials. They should be monitored so associations don’t lose money or get embezzled.”

In fact, HOA fraud is problem. I’ve written about several HOAs victimized by crooks posing as managers.

But a more common problem is simple mismanagement by a rookie that leads to huge legal and financial disputes within an HOA.

Complaints against HOAs are so widespread the Colorado General Assembly created the HOA Information and Resource Center to get a handle on the nature and seriousness of the problems.

After nearly a year of taking calls, Aaron Acker, the state HOA information officer, is preparing a report to be delivered to lawmakers during the 2012 legislative session.

Leaders of the CAI’s Rocky Mountain chapter fear the report to be a less-than-glowing assessment of HOAs. They fear shock and outrage. To minimize the anticipated fallout, they have made a preemptive strike.

Last week, the Colorado chapter of the CAI asked the state Department of Regulatory Agencies, or DORA, to initiate an investigation of HOA managers to determine if it’s time for them to join manicurists, barbers and boxers among the dozens of professionals licensed and regulated by the state.

Green is all for licensing and regulation.

“It would be beneficial for HOAs and their boards if managers were monitored and licensed,” she said. “Managers are handling thousands of dollars, if not millions. Nail technicians and hair stylists all have licensure. Why should someone managing your homeowners association be any different?”

Good question.

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