Financial and Records Management

As association attorneys we are in need of the governing documents in order to answer questions posed by the board or the manager.  Frequently we have those documents in that association’s file if we regularly represent that association.  We do need to keep up to date on any changes in the rules and regulations or architectural guidelines which may be made without our input or review.  Of course, we do believe it is a good investment for associations to allow us to review proposed rule or guideline changes before implementing to insure enforceability.  

Continue Reading DOCUMENT MAINTENANCE – DO YOU HAVE ALL OF YOUR ASSOCIATION’S GOVERNING DOCUMENTS?

We have found that managers and board members who have not had any experience with the process of obtaining FHA project approval have unrealistic expectations about the processing time.In this edition we let you know the “ins and outs” of the application for such approval. We handle both initial applications and recertifications and there is a significant difference.

Continue Reading How long does it take for a condominium to get FHA project approval?

QUESTION: 

I understand that at this time all associations are required to have a complaint procedure in place in order for their members to be able to let the CIC Board know of issues they have with their association. I also know that the Annual Report form requires an Association to state whether or not it has a complaint procedure. What is the consequence if an association fails to comply after getting the DPOR’s letter about non-compliance when they have checked “no” on the Annual Report?

Continue Reading Mandate from the Legislature-Complaint Procedure

Q:      We are a self managed association and members often ask for copies of records such as financial data and minutes of meetings. Often they ask for minutes before they are approved. One request is for our contract with the landscaper. We don’t feel that all these requests are appropriate. What do we have to provide to our owners?

Continue Reading Requests for Association records – What are the rules of the road?

 

Question:

I have a contract on my Virginia condo to close next week.  After the contract was signed, a special assessment was voted on and passed. The first due date for the assessment is after the closing.

The contract says "Unless otherwise agreed to in writing, Seller will pay any special assessments and will comply with all orders or notices of violations of any county or local authority, condominium unit owners’ association, homeowners’ or property owners’ association or actions in any court on account thereof, against or affecting the Property on the Settlement Date."

The title agency is saying that because the special assessment was passed before the closing I must pay the whole assessment.  Is this the correct interpretation of the above language from the contract?   I will pay it if I have to, but as it is not even due until after the settlement date; I would like to confirm.

Continue Reading Who is responsible to pay special assessment?

 

Since the virtual collapse of secondary market financing options for the purchase and refinance of condominium units occurred several years ago, it is more important than ever for Condominium projects to obtain certification from the Federal Housing Administration (FHA), the Veterans Administration (VA) and Fannie Mae.   FHA and VA currently account for an overwhelming majority of the available financing options for condominium units in today’s market. 

Continue Reading FHA Project Approval – Essential for nearly all condominium communities

Q. Our association is fairly new and we have just taken over control from the developer. I have been elected Treasurer and want to make sure we are doing all of the steps necessary to manage the Association’s finances. One of my major concerns is collection of delinquent assessments. We are not a large Association and almost everyone knows everyone else. We have just a few who are always behind and a couple who are way behind.  I don’t want to be the bad guy, but I also know that everyone must pay their dues. Can you make some suggestions that will get us on the right track?

Continue Reading Assessment collection – How to be the bad guy

QUESTION:

 

I asked our property manager if it was possible to get a copy of the absentee home owners and was told no. What does 55-510 “Access to association records”; C.9 "Individual unit owner or member files, other than those of the requesting lot owner, including any individual lot owner’s or member’s files kept by or on behalf of the association" mean, and am I able to get a copy of the absentee home owners to contact for quorum purposes?

 

ANSWER:

 

Section 55-510(B) of the VA Property Owners Association Act states that any owner can have access to the "membership list and addresses, which shall not be used for purposes of pecuniary gain or commercial solicitation."  You have stated that your intended purpose is to get the names and addresses of absentee owners so that you can contact them in hopes of achieving a quorum of owners.  If this is, in fact, your purpose, then you should be entitled to this information.  However, if the Association or its property manager has sufficient evidence indicating that you are obtaining this mailing list for business or commercial solicitation purposes, then they are within their rights to deny this information to you.