Articles

2022 Virginia Legislative Update for Common Interest Communities

Date: June 23, 2022

By: Kevin A. Kernan, Nasim J. Saeidi, Kathryn G. Murphy

The Virginia General Assembly only approved a few bills during its 2022 legislative session that impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2022. We have outlined the legislative action taken by the Virginia General Assembly that most directly affect both homeowners and condominium associations. We also summarize the piece of federal legislation recently introduced following the Surfside condominium collapse that, if passed by Congress, will have a direct impact on condominium associations nationwide.

The following bills amend the Property Owners’ Association Act (Va. Code Ann. 55.1-1801, et seq., as amended (1950)), the Virginia Condominium Act (Va. Code Ann. 55.1-1900, et seq., as amended (1950)), and other statutes that may affect common interest communities. Please feel free to contact us if you have questions regarding any of the following legislative changes.

DPOR Study of Standards for Structural Integrity of Buildings in Common Interest Communities

Senate Bill 740 was introduced following the Surfside collapse to better address building safety, building maintenance and structural integrity. It creates a task force under the Virginia Department of Professional and Occupational Regulation (“DPOR”) to analyze the adequacy of existing laws to address structural integrity and maintaining reserves to repair, replace or restore capital components in common interest communities. The working group will be compromised of many different professionals in the community association industry as well as volunteer community leaders. DPOR must report the working group findings and provide legislative recommendations to the Virginia House and Senate no later than April 1, 2023. This legislation is designed to ensure that existing laws adequately promote structural integrity and that structural repairs remain affordable.

Prohibition on Refusal to Recognize a Licensed Real Estate Broker

House Bill 470 and Senate Bill 197 amend the Property Owners’ Association Act and the Virginia Condominium Act by clarifying the prohibition on associations refusing to recognize a licensed real estate broker or sales agent designated by an Owner as his/her authorized representative provided that the association is given written authorization from the owner that includes the representative’s contact information and license number. The list of authorized persons to whom a seller may provide a written request for delivery of the association disclosure packet was also expanded.

Common Interest Community Board Feasibility Study

Senate Bill 693 directs the Common Interest Community (“CIC”) Board to review the feasibility of allowing audio and visual recordings to be submitted with a notice of final adverse decision as a record pertinent to the decision. The CIC Board must consider whether the submission of the audio or video recordings would assist it in the performance of its duties in adjudicating owner complaints. The Board must report its findings and any legislative recommendations to the House and Senate by November 1, 2022.

Proposed Federal Legislation: SAFER in Condos Act of 2022

H.R. 7532, otherwise known as, “Securing Access to Finance Exterior Repairs (SAFER) in Condos Act of 2022,” was introduced in the U.S. House of Representatives on April 18, 2022 by two representatives from the State of Florida. It was the first federal legislation introduced in response to the Surfside condominium collapse. If this bill successfully passes both houses of Congress, it will expand Section 203(k) Rehabilitation Mortgage Insurance through the Department of Housing and Urban Development (“HUD”) to allow Condominium Unit Owners to qualify to restructure their underlying mortgage or receive a new separate loan insured by the Federal Housing Administration to pay their share of special assessments intended to fund necessary structural repairs to condominium common elements. The legislation will relieve the financial pressures on owners’ household budgets by allowing repayment of the loan over many years.

The bill aims to encourage condominium associations to address necessary structural repairs when they become apparent rather than deferring the maintenance due to monetary concerns.

Please contact a Whiteford, Taylor & Preston, LLP attorney for more specific advice based on your community’s individual needs and concerns.

The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.