TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

COMMON INTEREST COMMUNITY BOARD

Proposed Regulation

Title of Regulation: 18VAC48-60. Common Interest Community Association Registration Regulations (amending 18VAC48-60-13, 18VAC48-60-15, 18VAC48-60-17, 18VAC48-60-25, 18VAC48-60-55, 18VAC48-60-60; adding 18VAC48-60-16).

Statutory Authority: § 54.1-2349 of the Code of Virginia.

Public Hearing Information:

August 20, 2025 - 10 a.m. - Department of Professional and Occupational Regulation, Perimeter Center, 9960 Mayland Drive, Second Floor Conference Center, Board Room Three, Richmond, VA 23233.

Public Comment Deadline: August 29, 2025.

Agency Contact: Anika Coleman, Executive Director, 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.

Basis: Section 54.1-201 of the Code of Virginia authorizes the Common Interest Community Board to promulgate regulations necessary to ensure continued competency and prevent deceptive or misleading practices by practitioners and to effectively administer the regulatory system. Section 54.1-2354.4 of the Code of Virginia requires the Common Interest Community Board to establish by regulation a requirement that each association establish reasonable procedures for the resolution of written complaints from the members of the association and other citizens. Section 54.1-2350 requires the board to develop and disseminate an association annual report.

Purpose: The board is responsible for administering the registration program for common interest community associations as set out, in part, by the Resale Disclosure Act (§ 55.1-2307 et seq. of the Code of Virginia). Failure of an association to comply with registration requirements poses a risk of financial harm to innocent third parties, namely purchasers and sellers in real estate transactions, due to the potential for contract cancellation and civil litigation. The goals of this regulatory action are to ensure the regulations complement Virginia law, reflect current agency procedures, provide clarification to provisions of the regulations, and reduce regulatory burdens by removing requirements that are not necessary to protect the health, safety, and welfare of the public or effectively administer the program.

Substance: The proposed amendments (i) revise definitions, (ii) provide that the board will send, instead of mail, renewal notices to the association's contact person; (iii) add a provision requiring an association to report a change of governing board member authorized by the association to receive correspondence related to notice of final adverse decisions (NFADs) from the Office of the Common Interest Community Ombudsman; (iv) provide that an association must notify the board of a change in contact person information in addition to a change of address; and (v) revise payment of registration fees. The proposed amendments also establish requirements for an annual report to include the designation of a contact person, the designation a governing board member to receive correspondences related to NFADs, and a certification regarding the association's establishment of an association complaint procedure.

Issues: The primary advantages to the public, regulated community, and the Commonwealth include providing clarification to provisions of the regulation, ensuring the regulation complements Virginia law and reflects current agency procedures, and reducing regulatory burdens by removing requirements that are not necessary to protect the health, safety, and welfare of the public or to effectively administer the program. There are no identifiable disadvantages to the public or the Commonwealth. It is not anticipated that the regulatory change will create any substantial disadvantages to the regulated community.

Department of Planning and Budget Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. As a result of a general review, the Common Interest Community Board (board) proposes to amend the Common Interest Community (CIC) Association Registration Regulations (18VAC48-60) to reflect current agency procedures and clarify certain provisions of the regulation.

Background. Chapters 20 and 21 of the 2023 Acts of Assembly amended § 54.1-2354.4 of the Code of Virginia to require the governing board of an association be provided with (i) a copy of a notice of final adverse decision filed with the Office of the CIC Ombudsman against an association; and (ii) a copy of any determination made as the result of Ombudsman review of the notice of final adverse decision. Further, the Department of Professional and Occupational Regulation (DPOR) reports that requiring an association to designate a contact person has long been standard practice. Thus, the board proposes adding requirements that would enable the implementation of these statutory requirements and conform the regulation to current practice. These are the changes:

18VAC48-60-16 would be newly added to require that the annual report that must be filed by CIC associations pursuant to § 55.1-1980 of the Code of Virginia and include the following: (i) the name and contact information of the contact person for the association; (ii) the name and contact information of a governing board member who has been authorized to receive correspondence relating to a notice of final adverse decision from the Office of the CIC Ombudsman; and (iii) a certification that the association has adopted a complaint procedure in accordance with the CIC Ombudsman Regulations (18VAC48-70) and that such procedure is in effect. While the last requirement is already included in 18VAC48-70-40, the board has determined that it is appropriate to also include the requirement in this regulation because it is applicable to association registrations.

18VAC48-60-25 requires associations to notify the board within 30 days of certain changes and would be updated to reflect the requirements in 18VAC48-60-16 by requiring associations to report any changes regarding the contact person or the authorized governing board member. In addition, 18VAC48-60-60 would be amended to add a definition of the phrase "lots or units subject to the declaration" to mean any lots or units in a development to which the provisions of the recorded declaration, as amended, for the common interest community are applicable. This clarification is currently in a guidance document.² Other proposed changes would clarify and simplify the language of the regulation, and update references to statute and other regulations.

Estimated Benefits and Costs. DPOR reports that unlike the professional regulation programs, the board association registration program does not grant a license or other authorization for an association to operate or exist. DPOR reports that there are potentially thousands of unregistered associations in Virginia that are required by the Code of Virginia to register with the board and comply with the provisions of this regulation. However, the Resale Disclosure Act (§ 55.1-2307 et seq. of the Code of Virginia) (the Act) requires that when selling a home in a CIC, the owner must provide a potential purchaser with certain legally required information regarding the home, common areas, and the association; together, this information is called the resale certificate. One component of the disclosure packet is documentation that the association has a current registration with the board. In addition, the Act provides that no association may collect certain authorized fees for the preparation and delivery of a resale certificate unless the association is registered with the board. Failure of an association to comply with registration requirements poses a risk of financial harm to innocent third parties, namely purchasers and sellers in real estate transactions, due to the potential for contract cancellation and civil litigation. The proposed amendments, which serve to clarify and update the requirements for initial registration, maintenance of registration, and annual renewal, would directly benefit CIC associations, and indirectly benefit (i) homeowners in currently registered CIC associations that maintain or renew their registration as required, (ii) homeowners in CICs that will need to obtain registration so that the homeowner may legally sell their home, and (iii) buyers of homes in both categories.

Businesses and Other Entities Affected. DPOR reports that as of March 1, 2025, there are 6,478 registered CIC associations, and potentially thousands of unregistered CIC associations. CICs include property owner associations, condominium unit owner associations, and proprietary lessee associations in real estate cooperatives. Data from the Community Associations Institute, a trade group for community associations, indicates that approximately 2.01 million Virginians live in 786,000 homes in over 8,890 CICs; this equates to 23% of state population.³ The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁵ Since the proposed changes do not create any new costs that are not required by statute, an adverse impact is not indicated.

Small Businesses⁶ Affected.⁷ DPOR reports that CIC associations may be incorporated or non-incorporated entities which fall within the meaning of small business as defined in § 2.2-4007.1 of the Code of Virginia. However, as mentioned previously, the proposed amendments do not appear to adversely affect small businesses.

Localities⁸ Affected.⁹ The proposed amendments do not disproportionately affect particular localities or affect costs for local governments.

Projected Impact on Employment. The proposed amendments do not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments could marginally increase the value of homes in currently unregistered CIC associations to the extent that they clarify and simplify the requirements to obtain, maintain, and renew registration with the board. Similarly, the proposed amendments would marginally reduce the indirect costs of real estate development as it applies to developers who are required to register and file an annual report as per § 55.1-1802 of the Code of Virginia. The proposed amendments do not increase real estate development costs.

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¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² See https://townhall.virginia.gov/L/ViewGDoc.cfm?gdid=7092.

³ Foundation for Community Association Research (2022). https://foundation.caionline.org/wp-content/uploads/2022/11/StateFactsFiguresVirginia22.pdf and https://data.census.gov/table/ACSDP1Y2022.DP05?q=virginia+population+in+2022.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁵ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁶ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁷ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁸ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Common Interest Community Board concurs with the Department of Planning and Budget's economic impact analysis.

Summary:

The proposed amendments revise (i) the definitions section; (ii) timeframes for filing association annual reports; (iii) minimum information required in an annual report filing; (iv) registration renewal requirements; (v) requirements for reporting changes to a registration; and (vi) provisions related to payment of registration fees.

18VAC48-60-13. Definitions.

A. Section § 54.1-2345 of the Code of Virginia provides definitions of the following terms and phrases used in this chapter:

"Association"

"Board"

"Common interest community"

"Governing board"

B. Section § 55.1-1800 of the Code of Virginia provides definitions of the following terms and phrases used in this chapter:

"Property owners' association"

C. Section § 55.1-2100 of the Code of Virginia provides definitions of the following terms and phrases used in this chapter:

"Proprietary lessees' association"

D. The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise a different meaning is provided or is plainly required by the context:

"Annual report" means the proper filing with the board of a completed, board-prescribed form submitted with the appropriate fee, and other required documentation for registration or renewal of an association.

"Association" means the same as the term is defined in § 54.1-2345 of the Code of Virginia.

"Board" means the same as the term is defined in § 54.1-2345 of the Code of Virginia.

"Common interest community" means the same as the term is defined in § 54.1-2345 of the Code of Virginia.

"Contact person" means the individual designated by an association to receive communications and notices from the board on behalf of the association.

"Governing board" means the same as the term is defined in § 54.1-2345 of the Code of Virginia.

"Property owners' association" means the same as the term is defined in § 55.1-1800 of the Code of Virginia.

"Proprietary lessees' association" means the same as the term is defined in § 55.1-2100 of the Code of Virginia.

"Registration" means the proper filing of an annual report with the board by an association and issuance of a certificate of filing by the board to an association in accordance with § 54.1-2349 A 8 of the Code of Virginia.

"Renew" means the process of filing an annual report with the board for continuance of a registration.

18VAC48-60-15. Timeframe for association registration and annual report.

A. Within 30 days after the date of termination of the declarant control period, an association governing a condominium shall the meaning and intent of § 55.1-1835 of the Code of Virginia, a property owners' association must register with the board by filing the an annual report required by § 55.1-1980 of the Code of Virginia within 30 days of recordation of the declaration and shall file an annual report every year thereafter.

B. Within 30 days after the date of termination of the declarant control period, a proprietary lessees' association shall an association governing a condominium must register with the board by filing the annual report required by § 55.1-2182 § 55.1-1980 of the Code of Virginia and shall file an annual report every year thereafter.

C. Within the meaning and intent of § 55.1-1835 of the Code of Virginia, a property owners' association shall 30 days after the date of termination of the declarant control period, a proprietary lessees' association must register with the board by filing an the annual report within 30 days of recordation of the declaration required by § 55.1-2182 of the Code of Virginia and shall file an annual report every year thereafter.

18VAC48-60-16. Designation of association contact person; certification of association complaint procedure.

A. An association must include the following information on an annual report:

1. The name and contact information of the contact person for the association.

2. The name and contact information of a governing board member authorized by the association to receive correspondence related to notices of final adverse decision from the Office of the Common Interest Community Ombudsman.

B. An association must certify with each annual report filing that it has adopted an association complaint procedure in accordance with the Common Interest Community Ombudsman Regulations (18VAC48-70) and that such procedure is in effect.

18VAC48-60-17. Association registration expiration and renewal.

A. An association registration shall will expire one year 12 months from the last day of the month in which it was issued.

B. Prior to the expiration date on the registration, the board shall mail will send a renewal notice to the registered association's contact person named in the board's records. Failure to receive a renewal notice from the board does not relieve the association of the obligation to renew by filing the annual report with the applicable fee.

C. Each association shall will renew its registration by filing an annual report with the board, including payment of renewal fee established in 18VAC48-60-60. A registration shall be renewed and considered current upon Upon receipt and processing by the board office of the completed annual report along with the renewal fee pursuant to 18VAC48-60-60, the registration will be renewed and considered current.

D. An association that does not renew registration within 12 months after expiration of the registration may not renew and must submit a new common interest community association registration application by filing the annual report and applicable registration fee.

E. The governing board of an association that fails to comply with registration requirements in this chapter may be subject to action by the board in accordance with 18VAC48-60-14 D C.

18VAC48-60-25. Maintenance of registration.

An association shall must notify the board office, in writing, within 30 days of any of the following:

1. Change of address of contact person information;

2. Change of governing board member authorized by the association pursuant to 18VAC48-60-16 A 2;

3. Change of members of the governing board; and

3. 4. Any other changes in information reported on the association's annual report.

18VAC48-60-55. Fees, generally.

All fees are nonrefundable and shall will not be prorated. The date on which the fee is received by the board or its agent will determine whether the fee is on time. Checks or money orders shall must be made payable to the Treasurer of Virginia.

18VAC48-60-60. Registration and renewal fees.

The following fee schedule is based upon the number of lots or units subject to the declaration for each association. Each association filing its first annual report shall must also pay the assessment required by § 54.1-2354.5 B of the Code of Virginia. The phrase "lots or units subject to the declaration," as used in this section, means any lots or units in a development to which the provisions of the recorded declaration, as amended, for the common interest community are applicable.