No. CS/HB 465
Filed under Housing.
Community Association Management; Requires community association managers & community association firms to obtain specified amount of insurance; provides for revocation of community association manager's license; barring community association manager from being licensed; requires certain community associations to contract with community association management firm; requires community association firm to possess all applicable licenses; provides that association board members, officers, & directors have duty to ensure such community association firm or community association manager is properly licensed; provides that timeshare management firms & licensed individuals employed by timeshare management firms are only subject to certain licensing & disciplinary requirements; provides that timeshare management firms & licensed individuals employed by timeshare management firms are only subject to certain licensing & disciplinary requirements unless certain provisions expressly apply; provides that certain other accommodations managed by timeshare management firm or licensed individual are governed under specified provisions of law; provides for priority of application in case of conflict.
Plain English Summary
AI-GENERATEDCommunity association managers must carry $1 million in errors or omissions insurance before working with any association. This new requirement applies to all managers and firms, regardless of the size of the community they serve.
Associations with annual revenues of $750,000 or more must now contract with a licensed management firm. Smaller associations may still hire individual managers, but the larger ones are required to use a firm.
Board members and officers of these associations have a personal duty to verify that their manager or firm is properly licensed before signing a contract. This creates direct liability for the board if they fail to check.
Timeshare management firms are now explicitly governed by timeshare law rather than community association law. This change limits the scope of licensing and disciplinary requirements that apply to timeshare managers.
AICreates a new financial requirement for all community association managers and firms before they can contract with or be employed by any condominium, cooperative, or homeowners' association.
AIRequires associations with total annual revenues of $750,000 or more to contract with a community association management firm, prohibiting them from using unlicensed individuals or managing themselves.
AIImposes a direct legal duty on every board member, officer, and director to verify that a community association manager or firm is properly licensed before entering into a contract.
AILimits timeshare management firms and their licensed employees to only the licensing and disciplinary requirements of Chapter 468, exempting them from other parts of the chapter unless expressly applicable.