What’s Happening at RECA – July 2024
| July 30, 2024
RECA’s modernized governance model consists of a Board of Directors and four Industry Councils representing each industry RECA regulates.
This general summary includes the key activities of the Board and all Industry Councils over the last quarter.
2025 BUSINESS AND FINANCIAL PLAN
RECA’s Business and Financial Plan for 2024 has been reviewed and approved by RECA’s Board of Directors and sent to the Minister of Service Alberta and Red Tape Reduction. It is now available for download.
RENEWAL LICENCE FEE CREDIT DUE TO UNPRECEDENTED INDUSTRY NUMBERS
Since 2019, the number of RECA licensees has increased by over 35%.
RECA currently has approximately 20,000 total licensees, the largest in history. The renewal period for the 2024/2025 licensing year opens on August 19, and from early reports, we expect the period of higher-than-average total licensees to continue.
This unforeseen and unprecedented level of individuals entering RECA’s regulated industries over the last few years, along with an unprecedented level of sustained active licences, is anticipated to continue to contribute to a surplus in revenue.
ECA’s Board of Directors approved the 2024-25 budget focused on ensuring RECA has the resources needed to fulfill its mandate during this period of unexpected industry growth, balanced with ensuring there are no undue financial pressures on licensees. To that end, and due to our unexpected revenue surplus for 2023/2024, RECA’s Board has approved a $250 fee credit for renewing individual licensees. In order to qualify for the credit, licensees must renew their licence for the 2024/2025 year by the September 30, 2024 deadline.
At the time of renewal licensees will pay for their RECA licence renewal fee, and their annual Real Estate Insurance Exchange (REIX) premium. The REIX premium that licensees pay for goes to
REIX for the licensees errors and omissions insurance and not to RECA. RECA simply collects the premium on behalf of REIX.
RECA is a self-funded, not-for-profit organization that operates on a cost-recovery basis. RECA does not aim to generate a profit from its licensing fees. If the revenue surplus continues, RECA may continue to issue a licensing fee credit in future years. Eligibility and timing of future credits will be
RULES REVIEW
Part 3 of Phase 2 focus of the Rules Review completed in May 2024. This Part focused on proposed changes to records, reporting, and the remaining Rules (Rule 82-118.3 plus Schedules 1-5).
Phase 3 will begin in the fall and will include a final stakeholder consultation on any potential issues that could arise should the final proposed Rule changes come into force.
Each Industry Council will continue to review the feedback from licensees and stakeholders on all the proposed changes, along with the recommendations of the Rules Review Steering Committee, before making any decisions. All stakeholders are strongly encouraged to provide any additional feedback to consultation@reca.ca.
The Rules Review is expected to conclude in 2024.
BROKER FORUMS
Broker forums for all industries were held in Edmonton and Calgary in May and June, with important topics discussed. Among the discussion topics was the possibility of introducing graduated licensing programs across all industries, based on the success seen in the condominium management industry. Also discussed was the need to have a commercial licence to sell commercial property, and the importance of English language proficiency in contract discussions. Next spring, forums will again be held in multiple major cities.
CONDOMINIUM MANAGEMENT EDUCATION COMPETENCIES REVISED
The Board of Directors has approved condominium manager competencies recommended
by the Residential Property Manager Industry Council, based on the review and many of the recommendations of the Condominium Property Management Education Competencies Ad-Hoc Committee. These competencies are provided to course providers to design pre-licensing education programs for the condominium management industry, and are used to develop licensing exams.
RECA will discuss the revised competencies at a town hall August 14, 2024.
