SB 822 to Clarify Contractor Licensing Reqs. for HOA Managers

We recently blogged about some concerns which have surfaced in the HOA industry regarding the impact of new contractor licensing requirements. AB 2237 was passed in 2012 by the California Legislature to expand on the definition of the “contractors” who must be licensed by the state. That expanded definition includes language which could be read to require common interest development (“CID” aka “HOA”) managers to have a contractor’s license in order to perform common tasks such as obtaining bids and overseeing the progress of ongoing construction work.

Our blog post addressed how a careful reading of the statutes along with the legislative intent behind AB 2237 reveal that HOA managers are not intended to be “contractors” that are required to hold a license. Fortunately, SB 822, introduced earlier this year, now includes a clarifying amendment to specifically exclude HOA managers from the definition of a contractor:

“This bill would provide that the term ‘contractor’ or ‘consultant’ does not apply to a common interest development manager, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined.”