1 / 41

2008 Virginia Common Interest Community Legislation

2008 Virginia Common Interest Community Legislation. presented by Lucia Anna Trigiani MercerTrigiani Alexandria, VA. Overview. House Bill 516 and Senate Bill 301 Recommendation of the Housing Commission Collaborative effort: Community Associations Institute

merv
Download Presentation

2008 Virginia Common Interest Community Legislation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 2008 Virginia Common Interest Community Legislation presented by Lucia Anna Trigiani MercerTrigiani Alexandria, VA

  2. Overview • House Bill 516 and Senate Bill 301 • Recommendation of the Housing Commission • Collaborative effort: • Community Associations Institute • Virginia Association of Community Managers • Virginia Association of Realtors • Lawyers and Accountants

  3. Overview Eleven Member Citizen Board Property Registration Programs Management Firm Licensure Management Firm Employee Certification Insurance Requirements Strengthened Common Interest Community Ombudsman Resale – Condominiums and Property Owners’ Associations

  4. Polling Question Which part of Virginia are you from? A) Northern VA B) Hampton/ Virginia Beach C) Central VA/ Richmond D) Southwestern VA F) I’m from a different state

  5. Citizen Board(Section 54.1-2348) • Appointed by Governor • 3 common interest community managers • 1 community association attorney • 1 community association accountant • 1 representative of the time-share industry • 2 developer representatives • 3 citizens: • 2 residents • 1 current or former board member

  6. Board Regulations(Section 54.1-2349) Fees Standards of Conduct Education-based certification program

  7. Board Powers & Duties – Managers(Section 54.1-2349) • Promulgate Regulations • Establish licensure criteria • Establish criteria for certification • Approve criteria for accredited training programs • Approve accredited training programs • Enforcement

  8. Board Powers & Duties – Associations(Section 54.1-2351) • Adopt and repeal rules, regulations • Seek injunctive relief • Intervene with declarant or developer • Assess a monetary penalty of not more than $1,000.00 per violation • Issue cease and desist orders (Section 54.1-2352)

  9. Management Firm License(Section 54.1-2346) October 1, 2008 (Governor recommendation – January 1, 2009) – Entities offering management services must obtain and maintain license July 1, 2011 – Condition of license renewal that employees are certified Blanket fidelity bond or Employee dishonesty insurance minimum $10,000.00

  10. Management Firm License (cont’d)(Section 54.1-2346) • Good standing • Code of conduct • Internal accounting controls • Annual independent review or audit • Provisional license - 2011

  11. Management FirmLicense Criteria • Experience • Accredited Association Management Company (AAMC) Designation • Other • Completion of Board-approved training program and examination • Virginia Testing Program • Quality of Virginia education • Competence

  12. Manager Certification Criteria • Principal responsibility for management services • Supervisory responsibility for employees who participate directly in provision of management services • Certification/Designation: • Certified Manager of Community Association (CMCA) • Association Management Specialist (AMS) • Professional Community Association Manager (PCAM)

  13. Manager Certification Criteria(cont’d) • Other • Completion of Board-approved training program and examination • Virginia Testing Program • Quality of Virginia education • Competence

  14. License Exemptions • Certain employees • Association employee • Community association resident – uncompensated • Community association board member – uncompensated

  15. More License Exemptions Receiver or Trustee Licensed attorney Licensed certified public accountant Licensed real estate broker or sales agent Time-share managing agent

  16. Polling Question What is your role in the community association industry? A) Community Manager B) Management Executive C) Board Member D) Home or unit owner E) Business Partner F) Other

  17. Association Insurance Requirements(Section 55-79.81 and Section 55-514.2) • In addition to coverage required in documents • Blanket fidelity bond or employee dishonesty policy • Losses resulting from theft or dishonesty by: • Officers, directors, employees • Managing agent or management employees • Minimum of $10,000.00 • Lesser of: • $1,000,000.00, or • Reserve balances plus ¼ average annual assessment

  18. Association Annual Report Fee(Section 55-79.93:1 and Section 55-516.1) • A fixed fee – as established by the Board • Annual assessment equal to the lesser of: • $1,000.00 or such other amount established by the Board; or • .02 percent of gross assessment income for preceding calendar year

  19. Resale Disclosure Certificate for Resale Association Disclosure Packet Manner of Delivery Fees charged and when collected Contents of Certificate or Packet

  20. Delivery • Electronic or hard copy, upon seller/agent request • Written request • Electronic or hard copy • Complete contact information of parties to whom delivered • May request hard copy in person at principal place of business • No extra fees may be charged for use of electronic network • 2 copies

  21. Fees(Section 55-79.97:1 and Section 55-509.6) • Inspection – a fee not to exceed $100.00 • Paper format – a fee not to exceed $150.00 • Electronic format – a fee not to exceed $125.00 • At the option of the seller or his authorized agent: • Expedited (5 business days), inspection, preparation and delivery of certificate or packet - $50.00 • Additional hard copy – a fee not to exceed $25.00 • Delivery charges – actual costs • Post-closing fee to purchaser, collected at settlement – a fee not to exceed $50.00

  22. Collection of Fees • Fee schedule must be published • Cannot be collected at time of request • Collected at settlement, out of settlement proceeds • Seller is responsible for costs of certificate • If settlement does not occur within 90 days of delivery or funds are not collected at settlement, fee becomes a charge against the property

  23. Fee Adjustment • Maximum allowable fee • Adjusts every 5 years • January 1st of that year • Annual increases in CPI-U (all urban consumers)

  24. Updates • Purchaser or Seller may request an update for a: • Certificate/Packet issued within preceding 12-month period • 10 days to deliver • Settlement agent may request a financial packet • 3 business days to deliver • Fee – not to exceed $50.00 • Inspection – not to exceed $100.00

  25. Penalty Failure to deliver: actual damages – not to exceed $1,000.00

  26. Property Owners AssociationSelf-Managed (Section 55-509.7) Actual costs – not to exceed $100.00 Copy charges limited to $.10 per page Updates – not to exceed $50.00

  27. New Disclosure Statements(Section 55-79.97 and Section 55-509.5) Any known post-closing fee charged by manager Approved minutes of board or association meetings for the preceding 6 calendar months

  28. Break for Questions • Using your chat feature, located to your left, feel free to send in any questions you may have at this point.

  29. Common Interest CommunityManagement Information Fund Common Interest Community Ombudsman Common Interest Community Recovery Fund

  30. Ombudsman(Section 55-530) • Member in good standing – Virginia State Bar • Assist members in understanding: • Rights • Processes available under declaration and by-laws • Answer inquiries • Provide information concerning common interest communities • Make information available via website • Receive notices of complaint

  31. Ombudsman (cont’d) • Maintain data on • Inquiries received • Types of assistance requested • Notice of complaints • Actions taken • Disposition of each matter

  32. Ombudsman (cont’d) • Assist members in using procedures and processes available in association, including: • Nonbinding explanations of laws and regulations by the Board • Referrals to public and private agencies offering ADR • Ensure access to Office of Ombudsman • Ensure timely response

  33. Ombudsman (cont’d) • Upon request to Director, by General Assembly standing committees or Housing Commission: • Assessment of proposed and existing laws • Other studies of common interest communities • Monitor changes in federal and state laws relating to common interest communities • Provide information for annual report by Director • Carry out activities as the Board determines

  34. Complaint Resolution • Procedures for resolution of written complaints • Common Interest Community • Board to establish by regulation • Association members • Others

  35. Complaint Resolution (cont’d) • System shall include • Record of each complaint – maintained for at least one year • Association-provided complaint forms or written procedures including • Contact information for the association or manager • Contact information for office of ombudsman • Clear and understandable description of complainant’s rights to give notice of adverse decisions

  36. Complaint Resolution (cont’d) • Complainant may give notice of final adverse decision in accordance with Board regulations • Notice filed • Within 30 days of final adverse decision • On forms prescribed by the Board • Including copies of all records pertinent to decision • $25.00 filing fee

  37. Complaint Resolution (cont’d) • Director may request additional information • Association must provide information – reasonable time • Director may determine that final adverse decision is in conflict with laws and regulations or interpretations by the Board - nonbinding

  38. Recovery Fund $25.00 – common interest community manager upon initial application $25.00 – each association upon filing first annual report After 2011 – minimum balance in fund must be $150,000.00 If funds are insufficient, Board may make an assessment against association and common interest community managers

  39. Conclusion

  40. Final Questions?

  41. 2008 Virginia Common Interest Community LegislationThank you! Lucia Anna Trigiani Principal MercerTrigiani Pia.Trigiani@MercerTrigiani.com

More Related