All initial sales and resales of properties located in a property owners/homeowners association require that the buyer receive a Disclosure Packet Notice (“Disclosure Notice”) developed by the Virginia Common Interest Community (CIC) Board which includes a list of the information and association documents which must be disclosed to a buyer upon entering into a purchase contract. Below in italics is an email we received from the CIC Board regarding an update to the Disclosure Notice.
Continue Reading REVISED HOMEOWNER ASSOCIATION DISCLOSURE NOTICE EFFECTIVE JULY 1, 2020
LEGISLATIVE UPDATE AND SWIMMING POOLS
Hello, Board members and managers. Next Thursday, June 18, our team member, Jeanne Lauer will be providing a legislative update on a webinar sponsored by the SEVA CAI Chapter. The program will also deal with other legal topics. To sign up please go to the following website: https://sevacai.memberclicks.net/
All of us are looking forward to more normalcy in our day to day activities. Thankfully we are about to enter Phase 2 of the Governors re-opening program. To assist you to comply with swimming pool operations and rules below we share the information that is on line as part of a very lengthy document from the Governor’s office on Phase 2. That full Phase 2 information can be found at: https://www.governor.virginia.gov/media/governorvirginiagov/governor-of-virginia/pdf/Virginia-Forward-Phase-Two-Guidelines.pdf
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Privacy and Security Webinar today, May 19 at 10:00
TODAY AT 10:00 A.M. ATTORNEYS MIKE INMAN AND MATT WEINBERG WILL SPEAK AT A SEVA/CIA SPONSORED WEBINAR ON SECURITY AND PRIVACY ISSUES IN COMMUNITY ASSOCIATIONS.
You can learn about attending by going to the chapter web site www.sevacai.org.
NEW STATE CODE SECTION NUMBERS FOR COMMUNITY ASSOCIATIONS – FORMS NEED UPDATING
Last year we informed you that effective October 1, 2019 the Virginia General Assembly reorganized Chapter 55 of the Code of Virginia. Chapter 55 includes the Condominium Act, the Property Owners Association (POA) Act and the Real Estate Cooperative Act. This reorganization did not amend the content of these Code Sections but did change the Code Section numbers. Prior to October, 2019 the Condominium Act was comprised of Sections 55-75.45 through 55.79.85. The Condominium Act is now comprised of Sections 55.1-1907 through 55.1-1969. Prior to October, 2019 the POA Act was comprised of Sections 55-508 through 55.516.2. The POA Act is now comprised of Sections 55.1-1801 through Sections 55.1-1836. Fortunately, a conversion table is available which makes it easy to correct form documents containing Code section citations. That chart can be found at https://www.vsb.org/docs/sections/realproperty/appendixb.pdf.
Continue Reading NEW STATE CODE SECTION NUMBERS FOR COMMUNITY ASSOCIATIONS – FORMS NEED UPDATING
THE COMMUNITY ASSOCIATIONS LAW TEAM IS OPEN FOR BUSINESS
We want you to know that at this time we are maintaining regular office hours with some of our attorneys and staff occasionally working from home. We are committed to be available to our clients in this difficult and uncertain time. Our attorneys and staff are also prepared, if necessary, to work remotely from our homes. We hope and pray that it will not become necessary and that we will soon be over the peak in the number of cases.
DO YOUR ASSOCIATION’S GOVERNING DOCUMENTS NEED TO RETIRE? OR MAYBE JUST GO TO REHAB?
If the community association you live in is showing some age, then most likely the association’s governing documents are as well. When was the last time your Board of Directors reviewed your documents to make sure they are keeping pace with the way we all live in the modern world? Do your documents comply with current provisions of the Virginia Condominium Act or the Virginia Property Owners Association (POA) Act? Have you ever tried to find an answer to a problem your association was experiencing and found your documents were inadequate in giving the Board clear guidance? Do you have difficulty finding certain topics in your documents?
Continue Reading THE COMMUNITY ASSOCIATIONS LAW TEAM IS OPEN FOR BUSINESS
Member Participation at Meetings – There are Rules
Frequently there are misunderstandings about the right of owners to participate in both meetings of the board of the directors as well as meetings of the members. It is important that all members of an association understand the rules that apply so that they are not disappointed by the limitations that may apply to their participation. Rules, imposed either by statute or the Bylaws, are needed in order to insure an orderly meeting and efficient consideration of the various agenda items.
Continue Reading Member Participation at Meetings – There are Rules
UNWANTED INHERITANCES FROM LAID BACK BOARDS
What are the challenges facing a board of any association which has recently experienced significant board member turnover or has emerged developer control? We have found that some of these prior boards have not been attentive to the area of enforcement of certain covenants. There are many challenges but one which requires prompt attention is architectural violations which have not been addressed by the prior board. Some homeowners have likely added fences, sheds, and other exterior improvements without getting approval from the Association. Many of these addition and exterior improvements may not meet the standards that were part of their documents. The board has a duty to enforce covenants and rules. So, what can the new board do about these apparent violations?
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THE CIC BOARD ISSUES GUIDELINES FOR THE PREPARATION OF ASSOCIATION RESERVE STUDIES
We’ve posted articles in the past about the importance of associations maintaining adequate reserves for the repair and replacement of the capital components in their communities that the association has the duty to maintain, repair and replace. Section 55.1-1965 of the Virginia Condominium Act and Section 55.1-1826 of the Virginia Property Owners Association (POA) Act both require that associations conduct a reserve study every five (5) years. Both Acts also require that the Board of Directors review the reserve study on an annual basis to determine if the association is collecting adequate reserves in the annual budget to make sure funds are available each time a capital component needs major repairs or replacement and to adjust the reserve budget annually if necessary.
Continue Reading THE CIC BOARD ISSUES GUIDELINES FOR THE PREPARATION OF ASSOCIATION RESERVE STUDIES
FHA LOANS – MAJOR CHANGES REGARDING CONDOMINIUM QUALIFICATIONS – PART II EFFECTIVE OCTOBER 15, 2019
Recently we posted the first of two parts about the changes in qualifications for FHA loans for condominiums. In this part we provide information on the rest of the changes.
REDUCTION IN OWNER OCCUPANCY REQUIREMENTS FOR ELIGIBLE PROJECTS
FHA’s primary motive for requiring that at least fifty percent (50%) of the units in a project be owner occupied or secondary residences is because it is statistically more likely that condominiums with a high percentage of rentals will have higher foreclosure and assessment delinquency rates than condominiums that are primarily owner occupied. It appears that FHA has settled on a compromise in order to avoid penalizing projects with higher rentals but lower delinquency rates. FHA currently requires that no more than fifteen percent (15%) of the units can be sixty (60) days or more in arrears in the payment of assessments. Effective October 15, if only ten percent (10%) or fewer owners are sixty (60) days or more in arrears, FHA will accept owner occupancy rates of only thirty five percent (35%). This could be a significant boost for Hampton Roads. We have seen many projects with strong financials rejected for FHA certification simply because of owner occupancy requirements. Because of the high concentration of the military in our area, many condominium projects can have a higher percentage of rentals but still maintain low delinquency rates.
FHA has also expanded on what qualifies as an owner occupied or secondary residence which we believe will also help increase the rate of owner occupancy in some projects and take the guess work out of defining which units qualify as owner occupied and which do not. These expanded definitions include {emphasis added}:
- “any Unit that is occupied by the owner as his or her place of abode for any portion of the calendar year and that is not rented for a majority of the calendar year;
- any Unit listed for sale, and not listed for rent, that was previously occupied by the owner as his or her place of abode for any portion of the calendar year and that is not rented for a majority of the calendar year; or
- any Unit sold to an owner who intends to occupy the Unit as his or her place of abode for any portion of the calendar year and has no intent to rent the Unit for a majority of the calendar year.”
FHA LOANS – MAJOR CHANGES COMING IN OCTOBER REGARDING CONDOMINIUM QUALIFICATIONS
According to a news release from the Department of Housing and Urban Development (HUD) several days ago, there are over 150,000 condominium projects in the United States, but “only 6.5 percent are approved to participate in FHA’s mortgage insurance programs.” In an effort to make Federal Housing Administration (FHA) loans accessible to more prospective purchasers of condominium units and because HUD estimates that 84% of FHA-insured condominium unit buyers are first time homeowners, HUD has announced some pretty significant changes to FHA regulations. These major changes will become effective on October 15, 2019 and include:
Continue Reading FHA LOANS – MAJOR CHANGES COMING IN OCTOBER REGARDING CONDOMINIUM QUALIFICATIONS