{"id":2700,"date":"2014-06-16T06:28:27","date_gmt":"2014-06-16T10:28:27","guid":{"rendered":"http:\/\/blog.tarleyrobinson.com\/?p=2700"},"modified":"2014-06-16T06:28:27","modified_gmt":"2014-06-16T10:28:27","slug":"2014-legislative-update-virginia-hoas","status":"publish","type":"post","link":"https:\/\/blog.tarleyrobinson.com\/?p=2700","title":{"rendered":"2014 Legislative Update for Virginia HOAs"},"content":{"rendered":"

The 2014 session on the \u00a0\u00a0(\u201cLAC\u201d) created new experiences for our committee. Each year on the LAC<\/a>\u00a0brings new challenges, and in my second year as Chair of the LAC, we experienced our most active General Assembly session.<\/p>\n

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.<\/p>\n

\"Williamsburg<\/a><\/p>\n

LATE FEES<\/span><\/p>\n

House Bill 566<\/a> amends Va. Code \u00a0\u00a7\u00a055-79.83 and \u00a0\u00a7\u00a055-513.3. This bill clarifies legislation that passed in 2013 that permitted both property owners\u2019 associations and condominium associations to impose a maximum late fee of 5% on assessments that are 60 days or more past due, unless the declaration, condominium instruments or rules and regulations provide otherwise. The new bill permits an association to charge a late fee not to exceed 5% if the association’s governing documents do not provide for late fees.<\/p>\n

COMPLIANCE WITH DECLARATION<\/span><\/p>\n

House Bill 530<\/a> amends Va. Code \u00a0\u00a7\u00a055-79.53A. This bill added language stating as follows:<\/p>\n

This section shall not preclude an action against the unit owners\u2019 association and authorizes the recovery, by the prevailing party in any such action, of reasonable attorney fees, costs expended in the matter, and interest on the judgment as provided on\u00a0\u00a7\u00a08.01-382 in such actions.<\/p>\n

MERGER AND JUDICIAL REFORMATION<\/span><\/p>\n

House Bill 690<\/a> amends the Condo Act and the Property Owners\u2019 Association Act. With respect to the\u00a0Condo Act, Va. Code \u00a7 55-79.71:2 is amended to permit condominium associations the\u00a0ability to merge condominiums.<\/p>\n

With respect to the Property Owners’ Association Act, Va. Code \u00a7\u00a055-515.2:1 permits an HOA\u00a0to file a suit with the court and request that changes be made to the declaration. However, this power is limited to addressing legal disputes involving ambiguities and inconsistencies in the documents, drafting errors, inadvertent omissions, or mathematical mistake.<\/p>\n

NOTICE FOR REQUESTS TO EXAMINE RECORDS<\/span><\/p>\n

House Bill 550<\/a> amends the Condo Act (Va. Code \u00a7 55-79.74:1) and the\u00a0Property Owners\u2019 Association Act (Va. Code \u00a7\u00a055-510).\u00a0Self-managed associations have 10 days (rather than 5) to respond to requests from owners to examine HOA records.<\/p>\n

RESCISSION OF CONDO PURCHASE AGREEMENT<\/span><\/p>\n

House Bill 899<\/a> amends the Condominium Act, Va. Code \u00a7\u00a7\u00a055-79.88 and 55.79-90. Specifically, this amendment reduces the purchaser\u2019s right to cancel a condo contract to 5 calendar days. Further, the statute requires that this notice must be in bold face, 12 point type on the first page of of the contract.<\/p>\n

DISCLOSURE PACKETS \u000bAND RESALE CERTIFICATES<\/span><\/p>\n

Disclosure packets requirements received another tweak. House Bill 900<\/a> amends\u00a0the Condo Act (\u00a7\u00a7 55-79.97 and 55-79.97:1)\u00a0and the Property Owners’ Association Act (Va. Code \u00a7\u00a7\u00a055-509.3, 55-509.4 and 55-509.6). The new bill clarifies permissible fees related to disclosure packets and resale certificates.<\/p>\n