FINANCIAL REGULATIONS
L EG I S LAT I V E AT T E M PTS TO I N C R EAS E R EG U LAT I O N S O N F I N A N C I A L
M AT T E RS T H AT A F F ECT A N ASSO C I AT I O N ' S F I N A N C I A L STA B I L I TY.
• Manager Licensing
As of January 2018, nine states had created some form of mandatory manager
licensure or certification. Required licensure raises costs for management
companies for education, examination and licenses. Those costs are reflected in
higher management fees.
• Home Finance
More states and lenders require increasing levels of documentation and
information related to a property before financing a residence. The fees to
produce documents are reflected in the closing costs of that transaction.
• Fee Caps
Some states have attempted (and succeeded) in capping the costs of home
finance documents in statute. The proposed caps often have no basis in the
true costs or liability risks, so the actual costs will have to be recovered by
the association or management company through higher fees elsewhere. The
net result is the state lowers transactional costs normally paid by the parties
benefiting from the transaction – namely, the sale of the residence – and now
the costs are spread among all community residents.
