Titles of Regulations: 18VAC48-50. Common Interest Community Manager Regulations (amending 18VAC48-50-140, 18VAC48-50-190).

18VAC48-60. Common Interest Community Association Registration Regulations (amending 18VAC48-60-14).

18VAC48-70. Common Interest Community Ombudsman Regulations (amending 18VAC48-70-60).

Statutory Authority:

§ 54.1-2349 of the Code of Virginia (18VAC48-50-140, 18VAC48-50-190, 18VAC48-60-14).

§§ 54.1-2349 and 54.1-2354.4 of the Code of Virginia (18VAC48-70-60).

Effective Date: January 1, 2024.

Agency Contact: Tanya Pettus, Administrator, Common Interest Community Board, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8510, FAX (866) 490-2723, or email cic@dpor.virginia.gov.

Summary:

Pursuant to Chapters 387 and 388 of the 2023 Acts of Assembly, which repeals provisions pertaining to disclosure requirements for the resale of lots or units in developments subject to the Property Owners' Association Act (§ 55.1-1800 et seq. of the Code of Virginia), the Virginia Condominium Act (§ 55.1-1900 of the Code of Virginia), and the Virginia Real Estate Cooperative Act (§ 55.1-2100 et seq. of the Code of Virginia) and consolidates these into the new Resale Disclosure Act (§ 55.1-2307 of the Code of Virginia), the amendments conform applicable provisions of Common Interest Community Board regulations to the new provisions of Chapter 23.1 of Title 55.1, including (i) providing that the board may assess a monetary penalty or issue a cease and desist order against a common interest community manager for failure to deliver a resale certificate or updated resale certificate as required by Chapter 23.1 of Title 55.1 of the Code of Virginia; (ii) removing the stipulation that a disclosure packet or resale certificate is deemed not available if the common interest community association does not have a current registration with the board; and (iii) prohibiting the collection of authorized fees for resale certificates if the certificate is not registered with the board, current in filing an annual report, and current in paying any assessment made by the board pursuant to § 54.1-2354.5 of the Code of Virginia.

18VAC48-50-140. Grounds for disciplinary action.

A. The board may place a regulant on probation, impose a monetary penalty in accordance with § 54.1-202 A of the Code of Virginia, or revoke, suspend, or refuse to renew any license or certificate when the regulant has been found to have violated or cooperated with others in violating any provisions of the regulations of the board or Chapter 23.3 (§ 54.1-2345 et seq.) of Title 54.1 of the Code of Virginia.

B. In accordance with § 55.1-2314 D of the Code of Virginia, the board may assess a monetary penalty or issue a cease and desist order against a common interest community manager for failure to deliver a resale certificate or updated resale certificate as required by Chapter 23.1 (§ 55.1-2307 et seq.) of Title 55.1 of the Code of Virginia.

18VAC48-50-190. Prohibited acts.

The following acts are prohibited and any violation may result in disciplinary action by the board:

1. Violating, inducing another to violate, or cooperating with others in violating any of the provisions of any of the regulations of the board; Chapter 23.3 (§ 54.1-2345 et seq.) of Title 54.1 of the Code of Virginia; or Chapter 18 (§ 55.1-1800 et seq.), Chapter 19 (§ 55.1-1900 et seq.), or Chapter 21 (§ 55.1-2100 et seq.), or Chapter 23.1 (§ 55.1-2307 et seq.) of Title 55.1 of the Code of Virginia or engaging in any acts enumerated in §§ 54.1-102 and 54.1-111 of the Code of Virginia.

2. Allowing a license or certificate issued by the board to be used by another.

3. Obtaining or attempting to obtain a license or certificate by false or fraudulent representation, or maintaining, renewing, or reinstating a license or certificate by false or fraudulent representation.

4. A regulant having been convicted, found guilty, or disciplined in any jurisdiction of any offense or violation enumerated in 18VAC48-50-180.

5. Failing to inform the board in writing within 30 days that the regulant was convicted, found guilty, or disciplined in any jurisdiction of any offense or violation enumerated in 18VAC48-50-180.

6. Failing to report a change as required by 18VAC48-50-150 or 18VAC48-50-170.

7. The intentional and unjustified failure to comply with the terms of the management contract, operating agreement, or association governing documents.

8. Engaging in dishonest or fraudulent conduct in providing management services.

9. Failing to satisfy any judgments or restitution orders entered by a court or arbiter of competent jurisdiction.

10. Egregious or repeated violations of generally accepted standards for the provision of management services.

11. Failing to handle association funds in accordance with the provisions of § 54.1-2353 A of the Code of Virginia or 18VAC48-50-160.

12. Failing to account in a timely manner for all money and property received by the regulant in which the association has or may have an interest.

13. Failing to disclose to the association material facts related to the association's property or concerning management services of which the regulant has actual knowledge.

14. Failing to provide complete records related to the association's management services to the association within 30 days of any written request by the association or within 30 days of the termination of the contract unless otherwise agreed to in writing by both the association and the common interest community manager.

15. Failing upon written request of the association to provide books and records such that the association can perform pursuant to §§ 55.1-1815 (Property Owners' Association Act), 55.1-1945 (Virginia Condominium Act), and 55.1-2151 (Virginia Real Estate Cooperative Act) of the Code of Virginia.

16. Commingling the funds of any association by a principal, his a principal's employees, or his a principal's associates with the principal's own funds or those of his the principal's firm.

17. Failing to act in providing management services in a manner that safeguards the interests of the public.

18. Advertising in any name other than the name in which licensed.

19. Failing to make use of a legible, written contract clearly specifying the terms and conditions of the management services to be performed by the common interest community manager. The contract shall include the following:

a. Beginning and ending dates of the contract;

b. Cancellation rights of the parties;

c. Record retention and distribution policy;

d. A general description of the records to be kept and the bookkeeping system to be used; and

e. The common interest community manager's license number.

20. Performing management services or accepting payments prior to the signing of the contract by an authorized official of the licensed firm and the client or the client's authorized agent.

18VAC48-60-14. Association registration, generally.

A. Within the meaning and intent of § 54.1-2349 A 8 of the Code of Virginia, an association is registered upon acceptance by the board of an a current annual report and issuance of a certificate of filing by the board in accordance with 18VAC48-60-15 and 18VAC48-60-17.

B. In accordance with §§ 55.1-1808 and 55.1-1990 of the Code of Virginia, for an association governing a condominium or for any property owners' association that does not have a current registration with the board in accordance with §§ 55.1-1835 and 55.1-1980 of the Code of Virginia, the disclosure packet or resale certificate, as applicable, is deemed not available.

C. A property owners' B. In accordance with § 55.1-2316 E of the Code of Virginia, an association that is not (i) registered with the board, (ii) current in filing the most recent annual report with the board pursuant to § 55.1-1835 of the Code of Virginia, and (iii) current in paying any assessment made by the board pursuant to § 54.1-2354.5 of the Code of Virginia is prohibited from collecting fees for disclosure packets resale certificates authorized by §§ 55.1-1810 and 55.1-1811 § 55.1-2316 of the Code of Virginia.

D. C. In accordance with §§ 54.1-2351 and 54.1-2352 of the Code of Virginia, the board may take action against the governing board of an association that fails to register in accordance with this chapter, which action may include issuance of a cease and desist order and an affirmative order to file an annual report or assessment of a monetary penalty of not more than $1,000.

18VAC48-70-60. Distribution of association complaint procedure.

A. The association complaint procedure must be readily available upon request to all members of the association and citizens.

B. The association complaint procedure shall be included as an attachment to the resale certificate or the association disclosure packet described in § 55.1-2310 of the Code of Virginia.