HOAs and Transition from Developer Control – 101

October 30, 2014 on 1:00 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, John Tarley, Susan B. Tarley, Unit Owners Association | No Comments

Owners in most community associations—both homeowner associations and condominium associations—eventually reach the point where the developer transfers control of the Board of Directors to the owners. This blog post provides an introduction to the transition process and what owners can expect.

Susan Tarley

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Unauthorized Practice of Law: When unlicensed attorneys serve as HOA board members

October 30, 2014 on 12:59 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Merger & Acquisition, Real Estate Strategies, Susan B. Tarley | No Comments

An article in the Virginia Gazette featured a story regarding the indictment of a local attorney for the unauthorized practice of law; a criminal charge classified as a class 1 misdemeanor. Although those allegations did not involve a homeowner association, it highlights a recurring issue for volunteer boards of directors for many organizations including homeowner associations and not-for-profit organizations on which attorneys serve. This article focuses on those issues facing boards for homeowner associations (“HOAs”) but the issues are similar for other volunteer boards of directors.

 

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HOAs – What are your Governing Documents?

October 30, 2014 on 12:59 pm | In Common Interest Community, Contributors, General Interest, HOA, HOA litigation, Susan B. Tarley | No Comments


It’s the beginning of a new year so let’s start with some basic nuts and bolts information regarding homeowners associations. We’ll begin this series of blog articles with a discussion of the phrase “Governing Documents” which is used by board members, managers and homeowners.

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Okay, how do we establish a funding plan for our HOA’s Reserves? (Part 2 of a 3 part series on Reserves)

October 30, 2014 on 12:59 pm | In Common Interest Community, HOA, Susan B. Tarley | No Comments

 

Once an association has obtained a reserve study, two questions arise: 1) Do we have to fund a reserve account?   and 2) If so, how do we fund a reserve account?

The statutes for condominiums and property owners associations require an association’s budget to include, among other things, an annual amount to fund the reserve account that is consistent with the obligations in the reserve study.  This means that an association should be placing funds into the reserve account that permits it to meet is obligations to repair, replace and restore capital components based on the estimated replacement cost, the estimated remaining life and the estimated useful life of the capital component.

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Virginia Statute – HOAs must adopt “Cost Schedule” to recover copy costs

October 30, 2014 on 12:58 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted  associations to recover the costs of copying the requested books and records.

This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.

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What Does It Mean to be on the Board of Directors of your HOA? Potential Liability (Part 2 of a Series)

October 30, 2014 on 12:57 pm | In Common Interest Community, General Interest, HOA, State & Federal Litigation, Susan B. Tarley | No Comments

We frequently are asked whether volunteer board members can be civilly liable for actions taken while a board member. This issue is of serious concern because lawsuits tend to be over inclusive, naming every possible defendant in the initial complaint. Why sign up as a volunteer board member if it could bankrupt you?

 

 

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Requests to Inspect and Copy Community Association or Company Records: Should it be this complicated?

October 30, 2014 on 12:57 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

A Virginia Beach jury found a condominium association liable for failing to permit unit owners an opportunity to inspect and copy association records. Not only must the condo board allow inspection and copying, they must pay for an audit of the association records and pay $50,000 for the unit owners’ attorneys’ fees.

These questions arise frequently. This blog post reviews the various Virginia statutes that address the right to inspect and copy records for companies, HOAs and condominium associations.

HOA Filing Information

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Make sure HOA Document Amendments are properly certified

October 30, 2014 on 12:56 pm | In Common Interest Community, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | Comments Off on Make sure HOA Document Amendments are properly certified

The Virginia Supreme Court’s opinion in Tvardek, et al v. Powhatan Village Homeowners Association, Inc. highlights how critical it is to not only amend your HOA documents in compliance with the law and your existing documents, but to make sure that the amended document that gets recorded properly memorializes that you did so.

The Tvardeks filed a declaratory judgment action in 2013 against Powhatan Village Homeowners Association, Inc. (“Powhatan Village”) to challenge a 2008 amendment to the association covenants that included a provision restricting the owners’ ability to rent their homes. Powhatan Village filed a special plea in bar requesting dismissal of the action as untimely citing the one-year statute of limitations in Va. Code Ann. § 55-515.1(E). Declining to hear any evidence, the Circuit Court made a decision on the pleadings and argument of counsel, ruling in favor of Powhatan Village’s argument that the claim was time-barred. The Circuit Court also awarded Powhatan Village $12,000 in attorney fees.

The Tvardeks appealed the case. The Virginia Supreme Court reversed the Circuit Court’s ruling, determining that the case was not barred by the one-year statute of limitations. The attorney fee award was also reversed.

Williamsburg Courthouse

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2014 Legislative Update for Virginia HOAs

June 16, 2014 on 6:28 am | In Common Interest Community, General Interest, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association, Weekly Tweets | No Comments

The 2014 session on the  Virginia Legislative Action Committee (“LAC”) created new experiences for our committee. Each year on the LAC brings new challenges, and in my second year as Chair of the LAC, we experienced our most active General Assembly session.

The LAC’s mission is to monitor and advocate for legislation affecting HOAs and condominium associations. All of the bills cited below are effective July 1, 2014 unless otherwise noted.

Williamsburg HOA and Business Law Firm

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CAI Law Seminar 2014 for HOA Lawyers

March 18, 2014 on 8:44 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association, Weekly Tweets | No Comments

Hard to believe that the CAI Law Seminar in Las Vegas was 7 weeks ago.  I have been meaning to report on the seminar but the practice has kept me very busy.

CAI Lawyer

The Law Seminar provides a unique learning opportunity to discuss emerging trends, practices and legislative issues important to the practice of community association law. Attendees include attorneys, management professionals, and other industry leaders.

The Law Seminar was excellent this year! I attended education sessions each day that were well-presented, topical, and detailed.  My colleagues in the HOA and condominium industry have a lot of experience to share.

I attended a session that reviewed a case study on Repair Projects, Special Assessments, Association Divisiveness and Litigation.  This session provided a lot of good information.  Two of the attorneys involved in advising the association, and in defending the subsequent litigation, provided an in-depth analysis of a community that needed to move forward on repair projects but did not have sufficient funds in its reserve account.  (Sound familiar?).  The program identified the issues faced by the community, the challenges of getting consensus from the owners on the needed repairs, and the solution that the board pursued.   There are many communities in Virginia that have aging infrastructures and will soon, if not already, be facing the challenges of making repairs and having the money to do so.  The presented case study provided a road map for a major repair project.

I also had the opportunity to serve on a “Panel of Pundits.” Along with colleagues from Colorado, Massachusetts, Hawaii and New Jersey, we fielded questions from the audience concerning community association issues.

Attorneys that make the effort to attend and participate in events like these help us all to stay current on issues that affect HOAs. That enables us to provide better service and advice to our clients. Because the law changes quickly, make sure your HOA law firm stays current.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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