Title of Regulation: 18VAC48-50. Common Interest Community Manager Regulations (amending 18VAC48-50-253, 18VAC48-50-255).

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

Public Hearing Information:

January 31, 2017 - 10 a.m. - Department of Professional and Occupational Regulation, Perimeter Center, 9960 Mayland Drive, Suite 200, Hearing Room 3, Richmond, VA 23233

Public Comment Deadline: February 10, 2017.

Agency Contact: Trisha Henshaw, 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 states in part that regulatory boards shall promulgate regulations in accordance with the Administrative Process Act (§2.2-4000 et seq. of the Code of Virginia) necessary to assure continued competence, to prevent deceptive or misleading practices by practitioners, and to effectively administer the regulatory system administered by the regulatory board. The imperative form of the verb "shall" is used, making the board's authority to regulate mandatory rather than discretionary.

Section 54.1-2349 of the Code of Virginia states in part that the board shall establish an education-based certification program for persons who are involved in the business or activity of providing management services to common interest communities and authorizes the board to approve training courses and instructors.

Purpose: The General Assembly determined that an education-based certification program for persons who are involved in the business or activity of providing management services for compensation to common interest communities was essential to protect the health, safety, and welfare of the citizens of Virginia. The Common Interest Community Board's current regulations require both applicants for initial licensure and renewal to complete a minimum of two contact hours in common interest community law and regulation in addition to fair housing training. The two contact hour programs are only applicable for renewal of certificates for principal or supervisory employees and are not a prerequisite to initial certification. The proposed amendment to the language provides much-needed clarification.

Substance: The proposed amendments to 18VAC48-50-253 and 18VAC48-50-255 remove "applicants" from the requirement of completing a two-hour common interest community law and regulation training program and a two-hour fair housing training program as a prerequisite for initial certification. In addition, the proposed amendment clarifies the topic areas and course of study regarding the two contact hours pertaining to common interest community law and regulation.

Issues: The primary advantage to the public and the certificate holders of the board is that the revisions will clarify the training program course content required to renew a certification and ensure that certificate-holders are aware of regulatory and legislative changes related to common interest communities and fair housing. There are no identified disadvantages to the public with the proposed language change as it does not change any of the current requirements or practices. The advantage to the Commonwealth is that the change ensures clarity and consistency when reviewing training programs for approval. There are no identified disadvantages to the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Common Interest Community Board (Board) proposes amendments to the "Virginia common interest community law and regulation training program" and "fair housing training program" requirements. The Board proposes to remove erroneous language and amend other language to improve clarity.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The current "18VAC48-50-253 Virginia Common Interest Community Law and Regulation Training Program Requirements" states that: "In order to qualify as a Virginia common interest community law and regulation training program for applicants for and renewal of certificates¹ issued by the board, the common interest community law and regulation program must include a minimum of two contact hours and the syllabus shall encompass Virginia laws and regulations related to common interest community management and creation, governance, administration, and operations of associations."

Analogous to 18VAC48-50-253, the current "18VAC48-50-255 Fair Housing Training Program Requirements" states that "In order to qualify as a fair housing training program for applicants for and renewal of certificates² issued by the board, the fair housing training program must include a minimum of two contact hours and …" According to the Department of Professional and Occupational Regulation, the two contact hour programs are only applicable for renewal of certificates for principal or supervisory employees, and not a prerequisite to initial certification. Thus the Board proposes to remove "applicants for and" from both 18VAC48-50-253 and 18VAC48-50-255. Removing this language will not have any impact in practice beyond clarifying the actual requirements in practice. This will be beneficial in that it will reduce the likelihood that readers of the regulation are misled.

The Board also proposes to clarify the language on the training content. The current regulation specifies which aspects (i.e., management, creation, governance, administration, and operations) of common interest communities to which the training must be related. The proposed action would remove those specific aspects to clarify that the training on law and regulations is not limited only to those aspects of common interest communities.

Businesses and Entities Affected. The proposed amendments pertain to the 6 Virginia common interest community law and regulation training programs and the 7 fair housing training programs.

Localities Particularly Affected. The proposed amendments do not disproportionately affect particular localities.

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

Effects on the Use and Value of Private Property. The proposed amendments do not affect the use and value of private property.

Real Estate Development Costs. The proposed amendments do not affect real estate development costs.

Small Businesses:

Definition. Pursuant to § 2.2-4007.04 of the Code of Virginia, 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."

Costs and Other Effects. The proposed amendments do not significantly affect costs for small businesses.

Alternative Method that Minimizes Adverse Impact. The proposed amendments do not adversely affect small businesses.

Adverse Impacts:

Businesses. The proposed amendments do not adversely affect businesses.

Localities. The proposed amendments do not adversely affect localities.

Other Entities. The proposed amendments do not adversely affect other entities.

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¹ The text in the regulation is not bolded.

² Ibid

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

Summary:

The proposed amendments clarify (i) that the requirement to complete a minimum of two contact hours in common interest community law and regulation in addition to fair housing training applies only to the renewal of certificates for principal or supervisory employees and is not a prerequisite to initial certification and (ii) the topic areas and course of study regarding the two contact hours pertaining to common interest community law and regulation.

18VAC48-50-253. Virginia common interest community law and regulation training program requirements.

In order to qualify as a Virginia common interest community law and regulation training program for applicants for and renewal of certificates issued by the board, the common interest community law and regulation program must include a minimum of two contact hours and the syllabus shall encompass updates to Virginia laws and regulations directly related to common interest community management and creation, governance, administration, and operations of associations.

18VAC48-50-255. Fair housing training program requirements.

In order to qualify as a fair housing training program for applicants for and renewal of certificates issued by the board, the fair housing training program must include a minimum of two contact hours and the syllabus shall encompass Virginia fair housing laws and any updates, all as related to the management of common interest communities.