Several clients have asked how much will the registration of my community cost? That depends on what version of the legislation passes, if any. Originally both the Senate and House version were identical and both required a fee of $1 per unit per year with a maximum of $250 and a minimum of $25. Since then that has changed.
House Bill 576
The House bill as passed keeps the registration process but eliminated the direct fee paid by your community. This bill also removed the cap paid by community managers and company employees which had been set at $200 and $100 respectively. Since the registration of your community remains a task for the new licensing board, we can anticipate that the entire cost, originally estimated to be $2,100,000 over the first four years will be paid by the employees of the management company. However, the Department of Licensing & Regulation believes that cost was understated which necessitated the removal of the caps for management company employees.
Senate Bill 794
The Senate bill currently remains as it was drafted. The Judicial Proceedings Committee has heard testimony, and is reviewing your comments and will vote to pass the bill out of committee most likely with amendments since the Department of Licensing & Regulation is insistent that revenue is insufficient to pay for the legislation, or they will kill the bill and we will attempt some version of the bill again next year.
It is our hope that you ask the Senate committee to reject the licensing bureau and instead work to pass legislation that licenses management companies and requires contract language and insurance that protects the funds and records of the community.
Thank you for your consideration.