Virginia Condominium & Homeowners Association Lawyer

We got big changes in Washington recently but we got big changes from Richmond in July! We are all grappling with the implementation of the new laws affecting associations contained in HB 516 which became effective on July 1. This law impacts numerous aspects of the operation of community associations.  In this blog we will deal with two aspects of the law – Resale Packets and Complaint Procedures.  Mike Inman is serving on two state committees which are working on the implementation of the law - a committee of the Common Interest Community Board known as the Regulatory Review Committee and a committee of the Virginia Housing Commission known as the HB 516 Work Group.  As a result he is keeping on top of developments relative to the new laws and the publishing of regulations which are intended to implement them.

Resale Packets

One of the biggest changes affecting you is the creation and administration of Resale Packets. 

There were changes relative to content and fees chargeable.  We have developed a written communication to buyers who request a package outlining the fee schedule in keeping with the limits set in the Code and other administrative details.  We can also help you to modify your Resale Packet cover sheet to insure you are including all required information. Below is the suggested communication to a person requesting a packet, which will need adjustment based on your particular fee structure: 

“We will need to know if you would like the resale certificate in hard copy or electronic format, and how many copies you would like. If you are requesting hard copies, please advise us if you would like them mailed, which is our standard practice, if you will pick them up when ready, or if you would like them sent by courier or overnight delivery (for which a fee applies). Also, please be certain to provide complete contact information for the person to whom the certificate is to be delivered. Please be advised that our schedule of fees is as follows: 

1. Fee for inspection of the Unit - $100.00
2. Fee for preparation and delivery of the resale certificate in:
   1. paper format - $150, for no more than two hard copies. Additional hard copies in excess of two are $25 per copy.
   2. electronic format - $125, for no more than two electronic copies.
3. If the seller or his authorized agent requests hand-delivery or overnight delivery of the resale certificate, we will charge the actual cost paid to a third-party commercial delivery service for hand delivery or overnight delivery.
4. Fee to establish the purchaser as the owner of the unit in the records of the unit owners' association - $50.

Please be aware that you must now include in a resale packet a copy approved minutes of the board meetings and the members meetings for the six months prior to the request for a packet.

These requirements can be found in Section 55-79.97.:1 of the Condominium Act and Section 55-509.6 of the Property Owners Association Act. The discussion above is not intended to be an all inclusive discussion of the changes on this topic, but, rather to highlight a couple of the more important items.

Let us know if you have questions on this particular issue.

Complaint Procedures to be Required 

A new requirement of the law as a result of HB 516 is the creation of a complaint procedure within each association.  This occurred because some legislators were getting input that homeowners were not getting appropriate responses to complaints about the operation of the association or other association related issues.  Apparently the owners’ forum concept, which is still required, was not sufficiently effective in some cases.

With the advantage of Mike's unique position, we write to inform you about the provisions of the new law relating to the creation of a complaint procedure in your associations. The new section 55-530(E) of the Code of Virginia states that: "the [CIC] Board shall establish by regulation a requirement that each association shall establish reasonable procedures for resolution of written complaints from the members of the association and other citizens...." It is vital to note that it says "the Board shall establish" the requirement by regulation. At this time, no regulation has been promulgated, and there is no requirement for a complaint procedure.  

As a member of the HB 516 Work Group of the Virginia Housing Commission, Mike attended a meeting on Tuesday, October 21, 2008, at which time the new CIC Ombudsman and the Executive Director of the CIC Board reported on the progress related to the implementation of regulations on the complaint process. Apparently, regulations can be expected on or about April 1, 2009. Until that time there is no reason to feel compelled to implement any procedures, especially because the final language of any regulation is still uncertain. There is no mandate to have the procedures in place by a set date. You will likely be expected to have procedures in place within 90 to 120 days after the publication of the regulations by the CIC Board. You may wish to begin consideration of your procedure, and we are certainly available to discuss the issue as it may best be implemented in your particular community. However, we counsel that it is best to wait until the final language of a regulation is issued before acting, or else you risk having to adopt procedures twice. You risk having to ask your attorney to review the procedure in light of the regulation which will be promulgated in the Spring and possibly modify the procedure and the complaint form.

We look forward to being of assistance to you as we all deal with the nuances of this new legislation in our every day tasks in operating associations. Please let us know how we can help you.