Most states have laws that govern homeowners associations and condominium associations. Virginia is one of them. A few Virginia HOA laws can affect the operations and management of an HOA or condo association. It is part of the association board’s job to familiarize themselves with these laws to ensure compliance and protection from liability.
The Importance of Understanding Virginia HOA Laws
Homeowners associations are private organizations, but that does not mean they are free from legal compliance. In fact, several laws in Virginia apply to these types of communities.
Every HOA is headed by a group of directors known as the HOA board. Board members assume their roles through elections or appointments. The HOA board is responsible for running the association, including duties such as collecting dues, enforcing the rules, and maintaining the common areas.
It is equally important for a board to understand the various HOA laws in Virginia that apply to their communities. Failing to understand these laws can result in several consequences. An association that does not comply with Virginia HOA laws may face monetary penalties. Homeowners may even initiate lawsuits against an HOA that does not follow state laws.
Virginia Property Owners Association Act 2020
The Virginia Property Owners Association Act is one of many Virginia homeowners association laws. This Act, found under Title 55.1, Chapter 18, governs the formation and operation of associations subject to a declaration recorded after January 1, 1959. The Act covers many topics, including association charges, access to association records, amendments to the declaration and bylaws, and liens.
Noteworthy Provisions
Some specific Virginia HOA laws under the Property Owners Association Act are worth discussing. To avoid enacting unenforceable HOA rules in Virginia, reading through them one by one is important.
- Section 55.1-1815 tackles access to association records, association meetings, and notices. This section requires associations to make books and records reasonably accessible to homeowners for examination and copying. It lists specific records that fall under the section and some records that are exempted from the rule.
- Section 55.1-1820 tackles the freedom to display the U.S. flag, which is similar to the federal Freedom to Display the American Flag Act of 2005. This section prevents associations from prohibiting the display of the American flag on private property, though associations may establish reasonable restrictions.
- Section 55.1-1820.1 talks about the installation of solar energy collection devices. This section effectively prevents associations from prohibiting the installation of a solar energy collection device on private property unless the recorded declaration establishes this prohibition. An HOA, though, may create reasonable restrictions about the size, location, and manner of placement of such devices.
- Section 55.1-1823.1 permits the installation of electric vehicle charging stations on private property in accordance with the declaration. An HOA may reasonably restrict the number, size, location, and manner of placement. Additionally, an HOA may prohibit EV charging stations in common areas.
Virginia Condominium Act
The Virginia Condominium Act oversees the formation and operation of condominiums and horizontal property regimes that were created after July 1, 1974. This Act is under Title 55.1, Chapter 19 of the Code of Virginia. It covers various topics, including the creation of condominiums, assignments of limited common elements, access to association records, meetings, insurance, and liability.
Virginia Horizontal Property Act
The Virginia Horizontal Property Act governs condominium projects that were created before July 1, 1974. This Act is under Title 55.1, Chapter 20 of the Code of Virginia. It covers topics such as joint or common ownership, books and records, and liens or encumbrances.
Virginia Condominium Regulations
The Virginia Condominium Regulations apply to the Common Interest Community Board (CICB). These regulations oversee the CICB’s exercise of powers and performance of duties according to the Virginia Condominium Act regarding condominium registrations.
Virginia Nonstock Corporation Act
The Virginia Nonstock Corporation Act applies to nonstock corporations in Virginia. At first glance, it may seem like it doesn’t belong on the list of Virginia HOA laws. However, more often than not, the state’s HOAs and condominiums are incorporated as nonstock corporations. Therefore, this Act governs associations regarding corporate structure and procedure. You will find this Act under Title 13.1, Chapter 10 of the Code of Virginia.
Virginia Real Estate Cooperative Act
The Virginia Real Estate Cooperative Act is found in the Code of Virginia under Title 55.1, Chapter 21. As part of Virginia HOA laws, it acknowledges and offers a legal framework for cooperative ownership in the state.
Virginia Debt Collection Act
The Virginia Debt Collection Act regulates debt collection practices in Virginia. It is similar to the federal Fair Debt Collection Practices Act (FDCPA), but this one works at the state level.
According to this Act, debt collectors may not utilize unfair, abusive, or deceptive practices when trying to collect a debt. The FDCPA recognizes HOA fees as debts and homeowners as protected consumers. However, the HOA does not typically fall under the description of a debt collector. This usually applies to HOAs that hire a third party to collect debts on their behalf.
Virginia Fair Housing Law
The Virginia Fair Housing Law offers protection from housing discrimination. This Act prohibits housing discrimination based on race, color, national origin, sex, religion, familial status, elderliness, or handicap. It is similar to the federal Fair Housing Act, but this one also works at the state level and is a vital part of Virginia HOA laws.
Virginia Common Interest Communities
The Virginia Common Interest Communities establishes the Common Interest Community (CIC) Board and Ombudsman. It sets up licensing requirements for CIC managers. The law is found under Title 54.1 Professions and Occupations, Chapter 23.3 of the Virginia Code. It contains two articles, both having individual sections. The first article deals with the CIC board, including their general powers and duties. Meanwhile, the second article deals with the CIC Ombudsman and funds.
Virginia Common Interest Community Ombudsman Regulations
The Virginia Common Interest Community Ombudsman Regulations require associations to create rules for accepting and entertaining complaints from both members and non-members. Associations may find the regulation under Title 18, Chapter 70 of the Code of Virginia. There are four parts to the regulation.
Virginia Common Interest Community Manager Regulations
The Virginia Common Interest Community Manager Regulations deal with the licensing and certification requirements of CIC managers. It is found under the Code of Virginia Title 18, Chapter 50. The regulations are divided into six parts that deal with qualifications, fees, renewals and reinstatement, standards of conduct and practice, and training programs and examinations.
Virginia Common Interest Community Association Registration Regulations
The regulations under the Virginia Common Interest Community Association Registration Regulations govern how the CIC board exercises its power and fulfills its duties. It tackles registrations and annual reports made by property owners associations. The regulation is found in the Code of Virginia under Title 18, Chapter 60.
Subdivided Land Sales Act
The Subdivided Land Sales Act is found in the Code of Virginia Title 55.1 Chapter 23. It tackles subdivided land sales and the transfer of ownership, encumbrances, alienation restraints, and management of subdivisions with common facilities or owners associations.
HOA Regulatory Bodies in Virginia
- Common Interest Community Board. This board regulates community managers and certain employees of licensed management companies. Associations in Virginia must file reports with this board on an annual basis.
- Office of the Common Interest Community Ombudsman. This agency offers information and assistance concerning the rights and processes available to residents of common interest communities in the state.
- Virginia Fair Housing Office. This office enforces the fair housing laws in Virginia. Victims of housing discrimination may file a complaint with this office.
- Virginia Department of Professional and Occupational Regulation. This agency licenses and regulates property management companies and developers in Virginia.
- Attorney General of Virginia. The attorney general plays a vital role in protecting the citizens of the state.
Legal Resources in Virginia
- Access to Justice. This guide helps low and modest-income residents get free and low-cost legal resources in the state.
- Virginia State Bar Association. This office provides access to a directory of lawyers, free or affordable legal services, lawyer referral services, and records to verify a lawyer’s standing and malpractice insurance. It also receives complaints.
- Virginia Legal Aid. This resource lets you find out if you’re eligible for legal aid services in Virginia.
- Virginia’s Judicial System. This provides access to the Supreme Court of Virginia, circuit courts in 32 judicial circuits, the Court of Appeals of Virginia, general district and domestic and juvenile relations district courts in 32 districts, and magistrates offices in 32 districts.
- Virginia Government Portal. The state’s government portal allows citizens to search for information by agency and topic.
- Virginia Regulatory Town Hall. This resource allows citizens to stay updated on regulatory actions and changes affecting community associations and condominiums.
- Virginia General Assembly. This resource allows citizens to search for legislation and state representatives.
- Virginia Secretary of the Commonwealth. This agency offers information on licensing, businesses, securities, and elections.
- HOA Directory. This directory allows homeowners to search the name of their subdivision or community to find community documents, association contact information, and board member lists.
How Can Homeowners Affect Virginia HOA Laws?
There are very few ways for homeowners to affect Virginia HOA laws. They may seek help from or voice their opinions to foundations or committees such as the Virginia Landowners Association or the Virginia Department of Wildlife Resources Hound-Hunters & Private Landlowners Stakeholder Advisory Committee.
In addition, while homeowners may not be able to directly affect Virginia HOA laws, they can change the community’s rules and governing documents. These documents often have the force of law. Hence, changing them will have a significant impact on homeowners’ lives. They can do this by amending the provisions within the CC&Rs or bylaws.
How to Dissolve an HOA In Virginia
Virginia HOA laws, specifically the Property Owners Association Act, are generally silent on the topic of dissolution. However, homeowners associations in the state can seek to dissolve the community in several ways.
First, if the homeowners association is a non-stock corporation, the HOA members and board can dissolve the corporation according to the provisions in The Virginia Nonstock Corporation Act Section 13.1-902. According to the section, the board shall propose a dissolution, and unless the board requires a greater vote, more than 2/3rds of the members must approve the proposal at a meeting with a quorum.
Meanwhile, unincorporated associations in Virginia may refer to the Uniform Common Interest Ownership Act. It states that 80% of voting members must agree to the termination unless the governing documents require a greater percentage.
Apart from these, the governing documents may also impose different procedural requirements for termination. They often involve how notice must be sent, how to communicate the dissolution, and the authorized reasons for dissolution. Homeowners associations must follow these requirements. Once the dissolution is approved, the HOA generally must file the Articles of Dissolution with the Secretary of State. They must also settle any outstanding debts and dispose of assets.
Virginia HOA Laws: The Bottom Line
As you can see, there are several Virginia HOA laws that both homeowners and HOA board members must know about. These laws govern the management and operations of associations. Failure to comply with these laws can result in penalties and liability. When in doubt, it is always best to seek help from a lawyer or community manager.
Cedar Management Group offers legal assistance, which includes compliance with Virginia HOA laws. Call us today at (877) 252-3327 or contact us online to learn more about our services!
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