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    The Greater Williamsburg area is an exciting place to live and work, especially because of the large number of entrepreneurs who have built businesses from the ground up. These entrepreneurs have taken their passion and made it their profession. Many of us want to take that step. Before you begin, you need to think of the type of business entity you want to form. Our attorneys have extensive business experience, from small one-person companies to publicly traded major corporations. Our attorneys are among the leaders in Virginia in the representation of Common Interest Communities. These communities are generally referred to as "homeowners associations," or "HOAs," and "condominium associations." In the greater Williamsburg area alone, we provide legal assistance to nearly 100 associations. Our attorneys have successfully prosecuted and defended a wide array of civil disputes involving community association covenant enforcement, commercial transactions, construction disputes, contracts, real estate matters, boundary line and easement disputes, employment matters, antitrust litigation, copyright violations, administrative proceedings, and estate issues. Real Estate law encompasses a wide variety of matters, and our attorneys have vast experience to assist you. Whether you need assistance with a commercial or residential closing, or you have questions relating to residential or commercial leasing, we provide experienced advice and counsel to our clients. Zoning law can be a complicated maze of statutes and ordinances. We have ample experience in successful applications for rezoning, variance, and special use permit requests. Finally, commercial and residential construction provide special challenges with respect to financing issues and the construction process. We serve as counsel to various financial institutions.

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

April 23, 2020 on 2:18 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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Okay, how do we establish a funding plan for our HOA’s Reserves? (Part 2 of a 3 part series on Reserves)

April 23, 2020 on 2:18 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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How does our HOA hire a Reserve Study specialist? (Part 3 of a 3 part series on Reserves)

April 23, 2020 on 2:18 pm | In Common Interest Community, General Interest, HOA, Real Estate Strategies, Susan B. Tarley | No Comments

Although Virginia law does not address who can perform a reserve study, it is clearly in the best interest of an association to hire a credentialed professional to conduct a reserve study for the community. Professionals who provide reserve studies include licensed Professional Engineers (PE), Architects (AIA and/or RA) and experts such as a Reserve Specialist (RS) or Professional Reserve Analyst (PRA).


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Community Association operations during COVID-19

April 23, 2020 on 2:18 pm | In Common Interest Community, General Interest, HOA, Susan B. Tarley, Unit Owners Association | Comments Off on Community Association operations during COVID-19

We have received many questions about how community associations should adjust their operations to comply with the health guidance on COVID-19, also known as the Coronavirus. Federal, state and local guidance and requirements change everyday. This article provides you with practical operations advice based on the current guidance that is available. As we have learned during the past weeks, all guidance is subject to change.

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Lawsuits against HOAs are expensive and time-consuming for all

April 23, 2020 on 2:18 pm | In Common Interest Community, General Interest, HOA, John Tarley, State & Federal Litigation, Susan B. Tarley | No Comments

A Virginia Circuit Court case highlights the expense and time commitment required when a homeowner sues a common interest community (referred to as “HOA” in this article). Furthermore, this case illustrates that HOAs can rarely predict or control when they may be dragged into a lawsuit.

In this case, Hornstein v. Federal Hill Homeowners Association, a homeowner had her house for sale with a pending sales contract. Pursuant to Va. Code Ann. § 55-509.5, the HOA provided a disclosure packet that revealed that the homeowner’s fence was not located on her property. In fact, the homeowner’s own survey confirmed that fact. The pending sales contract fell through.

The homeowner sued the HOA in Fairfax Circuit Court for slander of title and tortious interference with contract, including a claim for “bodily injury,” and “mental anguish.” The HOA prevailed in the case, leading to the homeowner’s petition for appeal to the Virginia Supreme Court. [UPDATED: The Virginia Supreme Court refused to hear the case, meaning that the Circuit Court’s decision stands].

Another battle has been waged regarding whether the HOA’s insurance carrier had a duty to defend the HOA in the underlying litigation. When the HOA’s insurance carrier denied coverage and representation, the HOA sued the insurance carrier. The case was removed to the federal court. The 4th Circuit District Court agreed with the insurance carrier. The HOA appealed and the 4th Circuit Court of Appeals reversed the trial court and held that the insurance carrier had a duty to defend. The insurance carrier has appealed for a rehearing. [UPDATED: the insurance carrier lost its appeal and was ordered to pay the HOA $217,308.86 for the attorneys’ fees the HOA incurred].

For a brief review, the HOA provided the disclosure packet in February 2006. After the homeowner’s pending sale fell through, she sued the HOA in August 2007. As we near August 2010, the underlying case may be close to resolution, but litigation with the insurance company may be far from resolving. Based upon the amount of litigation, we can assume that the HOA’s attorneys’ fees have reached six figures. Obviously, payment for these attorneys’ fees is then passed onto the homeowners (unless the case shifts payment of the attorneys’ fees to the losing party, but even then, courts rarely award the full 100% of the incurred fees).

Many lessons can be drawn from this experience. Most importantly, HOAs need to review their insurance policies to make sure they are covered fully for worst case scenarios. Our experience has shown that “anybody can sue anybody for anything at any time.” Although the plaintiff may not win (and did not win in this case), the ensuing litigation will take abundant resources. We can help you review your documents and insurance policies with the necessary professionals to protect your HOA, and homeowner interests.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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HOAs and Mediation: Not always a viable alternative to Litigation

April 23, 2020 on 2:18 pm | In Common Interest Community, HOA, HOA litigation, John Tarley, Real Estate Litigation, State & Federal Litigation, Susan B. Tarley, Unit Owners Association | 2 Comments

We have written extensively on the virtues of alternative dispute resolution, specifically mediation, to resolve disputes. Litigation is a time-consuming and expensive undertaking, and in the end, both sides are generally unhappy with the result because of the costs and time incurred.

But although we encourage mediation generally, mediation in HOA litigation is a much more complex and difficult undertaking. In this blog post, we will discuss difficulties with mediating HOA disputes.

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4 things your HOA needs to know about Virginia’s complaint process

April 23, 2020 on 2:18 pm | In Common Interest Community, General Interest, HOA, Real Estate Strategies, Susan B. Tarley | No Comments

In 2008, Virginia enacted legislation requiring condominium and property owners’ associations to establish reasonable procedures for resolving member and citizen complaints. The legislation further required the Common Interest Community Board (the “CICB”) to establish regulations for the associations to govern the complaint process.

 

What does this mean for your association? You will need to establish, or amend, your written procedures to comply with the regulations.

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Rental Restrictions in HOAs permitted according to the Virginia Attorney General

April 23, 2020 on 2:18 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Real Estate Strategies, Susan B. Tarley, Unit Owners Association | No Comments

In many HOAs, an issue arises when a homeowner purchases real estate as an investment property intending to lease the home or condo unit. In those situations, the homeowner becomes a “landlord” rather than a resident owner and the situation causes concerns for many homeowner and condominium owner associations. Many association documents contain restrictions on leasing property. In response to an inquiry, the Attorney General for Virginia has issued an official advisory opinion concerning the imposition of rental restrictions in common interest communities concluding that if the restriction is adopted correctly and for a legitimate purpose, the rental restriction is valid.

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HOAs – What are your Governing Documents?

April 23, 2020 on 2:18 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.

What are the Governing Documents? Continue reading “HOAs – What are your Governing Documents?”

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Common Interest Community Board revokes a management company’s license

April 23, 2020 on 2:18 pm | In Business Planning, Common Interest Community, HOA, Merger & Acquisition, State & Federal Litigation, Susan B. Tarley | No Comments

The Common Interest Community Board (the “CICB”) revoked a management company’s license for regulatory violations.  In a case reported in the September issue of the Community Associations Institute Law Reporter (Virginia Common Interest Community Board v. Sarraga t/a Lakeside Community Management, File No. 2010-00562, June 24, 2010), the CICB revoked the license of Sarraga t/aLakeside Community Management and issued fines totaling $2,000.

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