Date: 02/20/2014
Final
BILL SUMMARY for HB14-1254
HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT
| Votes: View--> | Action Taken: |
| Refer House Bill 14-1254 to the Committee of the W | PASS |
02:05 PM -- HB 14-1254
The committee came back to order. Representative Labuda, sponsor, presented House Bill 14-1254, concerning a requirement to disclose fees charged to a unit owners' association by a community association manager. The bill requires a licensed community association manager who provides services for a Homeowners' Association (HOA), either directly or through employees or subcontractors, to fully disclose to the HOA all service fees and charges that will be billed either to the HOA or to unit owners. The community association manager must disclose all fees and charges during contract negotiations with the executive board of an HOA, and annually thereafter. The Division of Real Estate in the Department of Regulatory Agencies (DORA) may regulate, investigate, and take disciplinary action against a manager for a violation of these provisions.
The following individuals testified:
02:09 PM -- Molly Foley-Healy, Community Associations Institute (CAI), testified in support of the bill. She stated the advantages of the bill and responded to questions from the committee.
02:16 PM -- Marcia Waters, DORA Division of Real Estate Director, came to the table to respond to questions from the committee. She discussed the recent concerns related to HOAs that have reached the division. She responded to questions from the committee.
02:19 PM -- Steven Gray, representing himself, testified against the bill. He discussed his experience with HOAs. He stated his concerns that the stakeholder process watered down the original intent of the bill. He responded to questions from the committee.
02:22 PM -- Leslie Stevens, representing Eclipse Properties, testified against the bill. She stated her concerns about HOA board members lack of knowledge on the fees, management contracts, and the Colorado Common Interest Ownership Act (CCIOA). Ms. Stevens discussed her concerns with the bill. She responded to questions from the committee.
02:30 PM -- Jim Burneson, representing himself, testified against the bill. Mr. Burneson discussed the issues with the bill. He responded to questions from the committee.
02:37 PM -- Kerry Hoffner, representing herself, testified against the bill. Ms. Hoffner discussed her opposition to the bill.
02:40 PM -- Doug Eilrich, representing himself, testified against the bill. Mr. Eilrich discussed his experiences with HOA transfer fees and responded to questions from the committee.
02:49 PM
The committee asked Representative Labuda to explain the stakeholder process behind the bill to better understand the nature of the testimony.
02:52 PM -- Stan Hrincevich, representing the Colorado HOA Forum, testified against the bill. He discussed his disappointment with the lobbying process that changed the original intent of the bill.
02:56 PM -- Tim Larson, Westwind Management Group, testified in support of the bill. Mr. Larson discussed his industry and responded to questions from the committee.
02:58 PM -- Wayne Mattox, representing Association and Community Management, testified in support of the bill. Mr. Mattox discussed the unpredictability of sales in HOAs. Mr. Mattox responded to questions from the committee about his association's fees. He discussed the legal nature of the contract and how the fee was set accordingly.
03:04 PM -- John Field, representing MSI, LLC, testified in support of the bill. Mr. Field discussed his management company's responsibility in a closing. Mr. Field responded to questions from the committee.
03:12 PM
Mr. Field continued to respond to questions from the committee on the bill's impact on his industry.
03:13 PM -- Lori Smith, representing herself, testified against the bill. She discussed discrepancies in the fees, and stated her desire to see a cap on the transfer fee. Ms. Smith responded to questions from the committee on the previous version of the bill.
03:17 PM -- John Reed, representing himself, testified in support of the bill.
03:18 PM -- Brandon Helm, Warren Management Group and CAI, testified in support of the bill. Mr. Helm discussed the variability of transfer fees.
03:19 PM -- Dee Wolfe, representing CAI, testified in support of the bill. She described the nature of the closing documents and the work they require. Ms. Wolfe responded to questions from the committee.
03:26 PM -- Justin Fontes, representing CAI, testified in support of the bill. He discussed his experiences with HOAs.
03:28 PM -- Jeff Kutzer, representing CAI, testified in support of the bill. He stated that the bill improves transparency.
03:30 PM -- Jim Cowell, representing CAI, testified in support of the bill. Mr. Cowell reiterated his colleagues testimony, and explained the difficulty in setting a uniform price on the transfer fee. Mr. Cowell responded to questions from the committee on the uniformity of fees within an HOA.
03:32 PM -- David Phifer, representing CAI, testified in support of the bill. Mr. Phifer discussed his experience with property management companies. He stated that computerization can only reduce fees so much, and that legwork and legal liability go into the production of these transfer documents.
03:34 PM -- Jeff Powles, representing TMMC Property Management, testified in support of the bill. Mr. Powles offered a point of clarification to earlier testimony on multiple status letters and multiple fees.
03:36 PM -- Brian Terhark, representing Westwind Management Group, testified in support of the bill. He discussed previous testimony related to HOA board members.
03:39 PM -- Chris Crigler, representing Cap Management, testified in support of the bill. Mr. Crigler provided examples of why fees are not one-size-fits-all. He distributed a map on the property transfer process for HOA management companies (Attachment C). Mr. Crigler responded to questions from the committee.
140220 AttachC.pdf
03:44 PM
Representative Labuda made closing remarks.
 | |
| BILL: | HB14-1254 | |
| TIME: | 03:44:47 PM |
| MOVED: | Kraft-Tharp |
| MOTION: | Refer House Bill 14-1254 to the Committee of the Whole. The motion passed on a vote of 10-0. |
| SECONDED: | Ryden |
| VOTE |
| Exum | Yes |
| Hamner | Yes |
| Holbert | Yes |
| Navarro | Yes |
| Nordberg | Yes |
| Rosenthal | Yes |
| Ryden | Yes |
| Szabo | Yes |
| Wright | Excused |
| Kraft-Tharp | Yes |
| Williams | Yes |
| | |
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS |