Certification Disclosures
Pursuant to Business & Professions Code Section 11504, managers of a common interest development (CID) are required to annually disclose to the association’s board of directors the following information:

1. Whether or not the CID manager has satisfied the requirements of Business & Professions Code Section 11502 governing when the manager may be called a “certified common interest development manager.” (Bus. & Prof. Code § 11504(a).)
2. The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification. (Bus. & Prof. Code § 11504(b).)
3. The location of his or her primary office. (Bus. & Prof. Code § 11504(c).)
4. Prior to entering into or renewing a contract with an association, the common interest development manager must disclose to the board of directors whether the fidelity insurance of the common interest development manager or his or her employer covers the current year’s operating and reserve funds of the association. This requirement does not compel an association to require a common interest development manager to obtain or maintain fidelity insurance. (Bus. & Prof. Code § 11504(d).)
5. Whether the common interest development manager possesses an active real estate license. (Bus. & Prof. Code § 11504(e).)

“Managing Agent” Disclosures
Civil Code Section 5375 additionally requires a prospective “managing agent” of a CID to disclose in a written statement certain information to the association’s board of directors “as soon as practicable, but in no event more than 90 days, before entering into a management agreement” with the association. The information which must be disclosed in that written statement includes the following:

1. The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement must include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation. (Civ. Code § 5375(a).)
2. Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by the State of California and are currently held by the persons specified above. If a license is currently held by any of those persons, the statement must contain the following information: (a) What license is held; (b) The dates the license is valid; and (c) The name of the licensee appearing on that license. (Civ. Code § 5375(b).)
3. Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified above including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement must include the following information: (a) What the certification or designation is and what entity issued it; (b) The dates the certification or designation is valid; and (c) The names in which the certification or designation is held. (Civ. Code § 5375(c).)

“Managing Agent” Defined – The term “managing agent” in this context does not include a full-time employee of the association or a regulated financial institution operating within the normal course of its regulated business practices. (Civ. Code §§ 5385, 4158(b); See also “Association Manager (Managing Agent).”)

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