"Just the Facts" Virginia Common Interest Communities 2012 Legislative Changes
The 2012 General Assembly resulted in a number of changes that directly or indirectly impact common interest communities in Virginia. The new laws amend the Virginia Property Owners' Association Act, the Virginia Condominium Act, and the Common Interest Communities. These new laws take effect on July 1, 2012. Below is a brief summary of the legislation that directly or indirectly impacts common interest community associations.
Exemption from Registration
Virginia Condominium Act
House Bill 377 – This bill amends Section 55-79.87 of the Virginia Condominium Act and exempts condominium units that are sold at auction from provisions of the Virginia Condominium Act that require the registration of the condominium with the Common Interest Community Board and delivery of a public offering statement by the declarant prior to the sale. The exemption applies to units where the resale certificate packet was made available as part of an auction package for prospective purchasers prior to the auction sale.
Association's Recovery of Reasonable Attorneys' Fees, Costs and Interest
Virginia Condominium Act
Virginia Property Owners' Association Act
House Bill 410 – This bill amends Sections 55-79.53 and 55-515 of the Virginia Code and provides that in cases in which the prevailing party is the association in an action against an owner for nonpayment of assessments (i) on more than one unit or lot (ii) such owner has had legal actions taken against him for nonpayment of any prior assessment, the Association shall be entitled to an award of reasonable attorney fees, costs expended in the matter, and interest on the judgment, even if the proceeding is settled prior to judgment. These amendments to the statutes further provide that the delinquent owner shall be personally responsible for all reasonable costs and attorney fees incurred by the community association, whether or not any judicial proceedings are filed.
Limitation on Certain Contracts and Leases Entered into by Declarant
Virginia Property Owners' Association Act
Senate Bill 628 - This bill adds Section 55-509.1:1 to the Virginia Property Owners' Association Act. It imposes limitations on certain contracts and leases entered into by the declarant on behalf of an association prior to the expiration of the declarant control period contemplated by the declaration. Specifically, the new Section limits any management or employment contract entered into during the declarant control period to a term not in excess of five years. In addition, it also provides that any such contract or agreement entered into on or after July 1, 2012, may be terminated without penalty by the association or its board of directors upon not less than 90 days' written notice to the other party, as long as the notice is given not later than 60 days after the expiration of the period of declarant control contemplated by the governing documents.
In addition, this bill amends Sections 55-509.2 of Virginia Property Owners' Association Act and requires the declarant to include, with other information provided upon transfer of control to the association, the number of lots that may be subject to the declaration upon completion of development, and the number of members of the board of directors and number of such directors appointed by the declarant together with names and contact information of members of the board of directors.
Common Interest Community Board Duties
Common Interest Communities Statute
House Bill 423 – This bill amends Section 54.1-2349 of the Virginia Code and requires the Common Interest Community Board to develop and publish best practices for declarations and a model declaration consistent with the best practices and the requirements of the Virginia Condominium Act, the Virginia Property Owners' Association Act, and the Virginia Real Estate Cooperative Act.
Extended Time Limit for Expansion, Contraction, or Conversion of Condominium
Virginia Condominium Act
House Bill 902 – This bill expands declarant rights and amends Sections 55-79.54 and 55-79.61 of the Virginia Condominium Act by increasing the time limit, from seven years to ten years from the date of recordation of the condominium declaration, in which a declarant/developer of a condominium must exercise his rights to expand, contract, or convert a condominium. The expansion of rights applies to declarations that are initially recorded or that are amended after July 1, 2012, to include this new time period.
Common Interest Community Board Authorized to Terminate Inactive Condominium Registrations
Virginia Condominium Act
Virginia Property Owners' Association Act
Common Interest Communities Statutes
House Bill 1219 and Senate Bill 472 – This bill amends sections of the Virginia Condominium Act, the Virginia Property Owners' Association Act, and the Common Interest Communities Statute and authorizes the Common Interest Community Board to terminate inactive condominium or time-share registrations. In addition, the bill clarifies the authority of the Common Interest Community Ombudsman to assist individual members of common interest communities regarding rights and processes available under applicable laws and regulations governing common interest communities.
If your Association has any questions associated with the upcoming changes to Virginia law or would like a copy of the laws as amended, please contact our Whiteford, Taylor & Preston Community Association attorneys.