Community Association Manager Licensing And Disciplinary Act - Adoption Of Official Rules


Effective October 1, 2011, the Department of Financial and Professional Regulation adopted and published the official rules to implement the Community Association Manager Licensing and Disciplinary Act. The formal adoption of the rules means that all persons who perform services as a community association manager must have a license by October 1, 2012. Persons who qualify for certain exemptions under the Act will have six (6) months from this date to obtain their license.

The basic requirement for a community association manager license is that the applicant must be twenty-one (21) years of age, successfully complete twenty (20) hours of community association management courses, and pass one of the two specified examinations for the license.

Persons who have practiced as a community association manager for at least five (5) out of the past ten (10) years are exempt from the education and testing requirement. In addition, managers with certain professional certifications qualify for the same exemption. The exempt certifications are the Association Management Specialist (AMS) or the Professional Community Association Manager (PCAM) awarded by the Community Associations Institute; the Certified Property Manager (CPM) or Accredited Resident Manager (ARM) awarded by the Institute of Real Estate Management (IREM); or the Certified Manager of Community Associations (CMCA) awarded by the National Board of Certification for Community Association Managers (NBCCAM). Managers who qualify for either class of exemption must apply for their license within six (6) months from the adoption of the rules or April 1, 2012.

The required continuing education, designated as pre-licensing hours of instruction, will cover the subjects of State and Federal laws, association finances, management, personnel, customer service and ethics; maintenance, insurance, and association meetings. The official examinations for the licensing program are the CMCA test administered by NBC CAM or the CID201 administered by IREM.

Although the first license renewal date will be August 31, 2013, all subsequent licenses will expire on August 31 of odd numbered years. The basic fee for a license will be $300.00 and renewal fees will be $150.00 per year for a two year license.

Managers should also be aware of the standards of conduct that will generate a review and possible penalties by the Department. To avoid disciplinary action, managers must be knowledgeable about their associations' governing documents; should not misrepresent material facts or make inaccurate statements to client associations; must not provide legal advice to client associations; properly disclose any conflicts of interests; and maintain the appropriate confidentiality for all clients.

The Department will publish further rules regarding the insurance requirements of the Licensing Act, as well as the courses that qualify for the continuing education requirement.

Topics:  Community Associations, Discipline, Licenses, Managers

Published In: General Business Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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