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Bill

H 5516

An Act regulating condominium associations and management companies

194th Legislature (2025-2026) Introduced by Lydia Edwards and 1 co-sponsor

Creates a licensing regime for condo managers and a Massachusetts Condominium Commission to regulate governance, education, enforcement, and consumer protections.

Senate concurred
0
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Bill Summary · H 5516

Purpose and overall intent

An Act regulating condominium associations and management companies proposes the creation of a new Massachusetts framework to license and regulate residential condominium managers, establish a Massachusetts Condominium Commission, and strengthen governance, education, and enforcement related to condominium associations and their boards. The measure aims to improve professional standards, accountability, transparency, and consumer protections for unit owners and other affected parties.

Key provisions and changes

  • Creation of the Massachusetts Condominium Commission (Sections 6-18 of Chapter 24A):

    • A five-member commission appointed by the governor (with Senate consent), including:
    • 3 residential condominium owners (one representing an association with fewer than 100 units)
    • 1 residential condominium manager
    • The commission operates within the Office of Consumer Affairs and Business Regulation but is not under its control.
    • Duties include rulemaking, licensing, complaints handling, education, and public outreach.
    • Regular meetings (at least 4 per year) with public meeting records and an annual budget/expense report.
    • The commission can appoint an executive director and hire staff.

  • Licensing and regulation of residential condominium managers (Sections 11-14):

    • Working as a condominium manager without a license or misrepresenting qualifications would be prohibited.
    • Licensure requirements include character, education, work experience, a state- or commission-approved exam, and ongoing continuing education.
    • Initial licensure term: 2 years; renewals are required by an established schedule with fees set by the administration (minimum renewal fee of $300).
    • Licenses can be denied, suspended, revoked, or limited for fraud, criminal conduct, failure to carry required insurance, failure to complete continuing education, or ethical violations.
    • Managers must maintain a minimum errors and omissions (E&O) insurance policy of at least $250,000, with 10 days’ notice for cancellation/non-renewal and reporting obligations for claims exceeding deductibles.
    • The commission may impose fines and penalties (up to $1,000 per violation) and civil penalties up to $5,000 for unlicensed practice or misrepresentation.

  • Education, training, and consumer assistance (Sections 15-17):

    • Mandatory education and training programs for association board members, developed or overseen by the commission.
    • The commission will provide resources and guidance to unit owners, boards, and managers, including filing, investigation, and complaint resolution procedures.
    • The commission acts as a liaison among executive offices and departments to support the condominium sector.

  • Regulatory alignment and definitions (Sections 2-7 and 8-9):

    • Amends Chapter 93A to include governing bodies, managers, and managing agents of condominium organizations as engaging in conduct of trade or commerce.
    • Amends Chapter 183A definitions to incorporate “board member” and “manager” and to reference the new Commission and licensure requirements.

  • Board member certification and ongoing education (Section 24-25 of Chapter 183A):

    • New requirements for board members: within 90 days of election/appointment, certify reading and commitment to bylaws and fiduciary duties; complete a 4-hour pre-licensing/education curriculum.
    • Ongoing annual continuing education (minimum 1 hour) on changes to the law and rules.
    • Failure to certify or complete education can trigger suspension from the board, with temporary vacancies allowed.
    • Provisions make association governance activities subject to the 93A conduct standard.

  • Effective dates and phasing (Sections 9-10):

    • Managers must comply with licensure requirements by June 30, 2027.
    • Board members elected before July 1, 2026, must comply with certification/education requirements by June 30, 2027.

Who would be affected

  • Residential condominium managers and managing agents (licensing, education, insurance, discipline, and penalties).
  • Boards of unit owners and association members (education requirements, governance transparency, record access enhancements under subsequent 183A amendments).
  • Condominium associations and management companies (licensure, regulatory compliance, and potential costs associated with insurance and education).
  • Unit owners (enhanced protections, access to records, and access to the commission’s guidance and complaint processes).

Procedural and timeline aspects

  • Establishment of the Massachusetts Condominium Commission and a phased licensing regime for managers.
  • Initial licensure and background/examination requirements leading to a 2-year licensure cycle, with ongoing continuing education.
  • A broad phasing: licensure by mid-2027 for managers; board member certification by mid-2027 for those elected before mid-2026; ongoing education thereafter.
  • Appeals and enforcement integrated with Chapter 30A procedures; substantial penalties for noncompliance and unlicensed practice.

Compiled from official sources — confirm details with the bill’s official record.

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