PRESENTED BY

LUCIA ANNA TRIGIANI

MERCERTRIGIANI

ALEXANDRIA, VA

2008 Virginia Common Interest

Community Legislation

House Bill 516 and Senate Bill 301Recommendation of the Housing

CommissionCollaborative effort:

Community Associations Institute Virginia Association of Community

Managers Virginia Association of Realtors

Lawyers and Accountants

Overview

Eleven Member Citizen BoardProperty Registration ProgramsManagement Firm LicensureManagement Firm Employee CertificationInsurance Requirements StrengthenedCommon Interest Community

OmbudsmanResale – Condominiums and Property

Owners’ Associations

Overview

Polling Question

Which part of Virginia are you from?

A) Northern VAB) Hampton/ Virginia BeachC) Central VA/ RichmondD) Southwestern VAF) I’m from a different state

Appointed by Governor3 common interest community managers1 community association attorney1 community association accountant1 representative of the time-share

industry2 developer representatives3 citizens:

2 residents 1 current or former board member

Citizen Board(Section 54.1-2348)

FeesStandards of

ConductEducation-

based certification program

Board Regulations(Section 54.1-2349)

Promulgate RegulationsEstablish licensure criteriaEstablish criteria for

certificationApprove criteria for

accredited training programs

Approve accredited training programs

Enforcement

Board Powers & Duties – Managers(Section 54.1-2349)

Adopt and repeal rules, regulations

Seek injunctive relief Intervene with declarant or

developerAssess a monetary penalty of not

more than $1,000.00 per violation

Issue cease and desist orders (Section 54.1-2352)

Board Powers & Duties – Associations(Section 54.1-2351)

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

Management Firm License(Section 54.1-2346)

Good standingCode of conductInternal accounting

controlsAnnual independent

review or auditProvisional license - 2011

Management Firm License (cont’d)(Section 54.1-2346)

ExperienceAccredited Association Management

Company (AAMC) DesignationOther

Completion of Board-approved training program and examination

Virginia Testing Program Quality of Virginia education Competence

Management FirmLicense 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)

Manager Certification Criteria

Other Completion of Board-approved training

program and examination Virginia Testing Program

Quality of Virginia education Competence

Manager Certification Criteria (cont’d)

Certain employeesAssociation

employeeCommunity

association resident – uncompensated

Community association board member – uncompensated

License Exemptions

Receiver or TrusteeLicensed attorneyLicensed certified

public accountantLicensed real estate

broker or sales agentTime-share managing

agent

More License Exemptions

Polling Question

What is your role in the community association industry?A) Community ManagerB) Management ExecutiveC) Board MemberD) Home or unit ownerE) Business PartnerF) Other

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 $10,000.00Lesser of:

$1,000,000.00, or Reserve balances plus ¼ average

annual assessment

Association Insurance Requirements(Section 55-79.81 and Section 55-514.2)

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

Association Annual Report Fee(Section 55-79.93:1 and Section 55-516.1)

Certificate for ResaleAssociation

Disclosure PacketManner of DeliveryFees charged and

when collectedContents of

Certificate or Packet

Resale Disclosure

Electronic or hard copy, upon seller/agent request

Written request Electronic or hard copy Complete contact information of parties to

whom deliveredMay request hard copy in person at

principal place of businessNo extra fees may be charged for use

of electronic network2 copies

Delivery

Inspection – a fee not to exceed $100.00Paper format – a fee not to exceed $150.00Electronic format – a fee not to exceed

$125.00At 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

Fees (Section 55-79.97:1 and Section 55-509.6)

Fee schedule must be publishedCannot be collected at time of requestCollected at settlement, out of

settlement proceedsSeller is responsible for costs of

certificateIf settlement does not occur within 90

days of delivery or funds are not collected at settlement, fee becomes a charge against the property

Collection of Fees

Maximum allowable fee Adjusts every 5

years January 1st of that

year Annual increases

in CPI-U (all urban consumers)

Fee Adjustment

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

Updates

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

Penalty

Actual costs – not to exceed $100.00

Copy charges limited to $.10 per page

Updates – not to exceed $50.00

Property Owners AssociationSelf-Managed

(Section 55-509.7)

Any known post-closing fee charged by manager

Approved minutes of board or association meetings for the preceding 6 calendar months

New Disclosure Statements (Section 55-79.97 and Section 55-509.5)

Break for Questions

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

Common Interest Community Ombudsman

Common Interest Community Recovery Fund

Common Interest CommunityManagement Information Fund

Member in good standing – Virginia State Bar

Assist members in understanding: Rights Processes available under declaration and

by-lawsAnswer inquiriesProvide information concerning common

interest communitiesMake information available via websiteReceive notices of complaint

Ombudsman(Section 55-530)

Maintain data on Inquiries received Types of assistance

requested Notice of complaints Actions taken Disposition of each

matter

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 ADREnsure access to Office of OmbudsmanEnsure timely response

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

Ombudsman (cont’d)

Procedures for resolution of written complaints Common Interest

CommunityBoard to establish by

regulation Association members Others

Complaint Resolution

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

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

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

Complaint Resolution (cont’d)

$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

Recovery Fund

Conclusion

Final Questions?

LUCIA ANNA TRIGIANIPRINCIPAL

MERCERTRIGIANI

PIA.TRIGIANI@MERCERTRIGIANI.COM

2008 Virginia Common Interest Community Legislation

Thank you!