Did you know that Virginia has a law which requires all licensed contractors to contribute towards a fund that helps victims of fraud and dishonest conduct? While many states have similar consumer laws, Virginia also includes Property Owners Associations as potential victims. (We don’t know why condominium associations are not included but it is on our “to do” list.) The Contractor Recovery Fund (aka Santa) reimburses qualified applicants up to $20,000.00 in cases where the contractor has engaged in “wrongful taking or conversion of money, property or other things of value which involves fraud, material misrepresentation or conduct constituting gross negligence, continued incompetence, or intentional violation of the Uniform Statewide Building Code…” Virginia Code § 54.1-1118. So if a contractor collected a deposit and never came back to do the work and you can’t find him, there might be a chance to get that money back. The process is a bit technical but worth the effort if you have a substantial amount involved.Continue Reading Virginia has a Santa “clause” ….and he brings dollars
Boards – Take Notice – 3 big reasons properly funded reserves are essential
Only a few years ago the Virginia General Assembly recognized that many association boards just would not face up to the need for reserves in an effort to keep “dues” at a lower and more competitive level. Many are paying a price for those decisions now. It became such a problem that several years ago the Virginia General Assembly passed a law requiring reserve studies every 5 years and an annual review of reserves by every board (see Section 55-79.83:1of the Condo Act and Section 55-514.1of the POA Act.). Continue Reading Boards – Take Notice – 3 big reasons properly funded reserves are essential
Revising your Rules and Regs? Keep it Simple!
Often associations review their rules when they want to make some change or addition, but it is best to review all the rules at least every 5 years because a few things do change periodically in the make-up and needs of every community. So here are some guidelines for your review that might prove useful to you:Continue Reading Revising your Rules and Regs? Keep it Simple!
Are you thinking about foreclosing on an assessment lien? Think twice
Several years ago the Virginia General Assembly gave community associations the power to foreclose on their assessment liens. This provided an apparent powerful tool in the collection of delinquent assessments. I emphasize the word apparent. First of all, and worst of all, association liens are subordinate to first mortgages and real estate taxes. In this day in time it is most often the owner with virtually no equity in his property that is also delinquent in his assessments. The first step in deciding on the use of the foreclosure option is to perform a title search to determine what liens are on the property. That might result in a quick decision to cease all action toward foreclosure because the sale will not yield any dollars for the association. However, if there is substantial equity you should keep pursuing that option if the balance owed by the homeowner is significant enough to make the investment of costs (attorney’s fees, advertising the sale, etc.) worthwhile. Continue Reading Are you thinking about foreclosing on an assessment lien? Think twice
What Can Be Done When a Quorum is Elusive?
Q: As a board member of a large condominium association, I am trying to figure out how we can have our upcoming annual meeting if we don’t get a quorum of members present. Our bylaws say we have to have fifty percent of our owners present in person or by proxy to have a quorum for a meeting. That is 90 members. We did not achieve that number last year and could not have the meeting and elect new directors. What can we do to have a successful meeting?Continue Reading What Can Be Done When a Quorum is Elusive?
Death in Florida Demonstrates Need For Vigilance By Board and Managers
(Excerpt from Common Ground Magazine – May/June, 2013)
Continue Reading Death in Florida Demonstrates Need For Vigilance By Board and Managers
Nonstock Corporation Act
We are all familiar with the Condominium Act and the Property Owners Association Act but how often do we think about the Nonstock Corporation Act? Most of our Associations were formed as nonstock corporations so when we are looking at whether there is compliance with the law, we need to be aware of this Chapter of the Virginia Code.Continue Reading Nonstock Corporation Act
BEFORE YOU BUY…DO YOUR “DUE DILIGENCE”
Q. I am getting ready to retire and I am considering buying a condominium unit and have looked at several older complexes and some that are brand new. Are there any tips you can give me on what to look at before I make a decision?Continue Reading BEFORE YOU BUY…DO YOUR “DUE DILIGENCE”
DUE PROCESS PROCEDURES: KEEPING ORDER IN THE NEIGHBORHOOD
It’s a good day to talk to you about due process procedures which are needed when you wish to formally take action on a covenant violation without filing a law suit or possibly suspend services or use of facilities for an owner who is more than 60 days delinquent in the payment of assessments.
Owner Maintenance
Q: Our townhouse development has recorded covenants which require upkeep of the exterior to a high standard by each owner. Not all owners follow the requirements. Some hire third rate contractors who do a poor job or take months to finish what they start. We need to find a way to get better quality work done by our homeowners and get it done quickly after starting. Our board is thinking about starting a list of acceptable contractors who we have seen perform well and requiring the owners to use them. Any suggestions?Continue Reading Owner Maintenance