Fairfax County's 2008 Common Interest Community Legislation

2008 Common Interest Community Legislation

Consumer Affairs BranchFairfax County Department ofCable and Consumer Services

fairfaxcounty.gov/consumer

fairfaxcounty.gov/consumer

Eleven Member Regulatory Board

Management Firm Licensure Requirements

Insurance Requirements Expanded

The Office of the Ombudsman

The Common Interest Community Management Recovery Fund

Resale Certificates and Disclosure Packet requirements

House Bill 516 and Senate Bill 301

fairfaxcounty.gov/consumer

Virginia Laws Governing Community Associations

Virginia Condominium Act Title 55 – Chapter 4.2

Virginia Property Owners’ Association Act Title 55 – Chapter 26

Virginia Common Interest Community Management Information Fund Title 55 – Chapter 29

Common Interest Communities Title 54.1 – Chapter 23.3

fairfaxcounty.gov/consumer

Consists of 11 members appointed by the Governor

◦ Three common interest community managers

◦ An attorney

◦ A certified public accountant

◦ A representative of the timeshare industry

◦ Two real estate developers

◦ Two Virginia citizens who are residents of a common interest community

Common Interest Community Board (CIC Board)

fairfaxcounty.gov/consumer

Development of regulations establishing the licensing and certification of community managers and employees (Title 54.1 Chapter 23.3)

Regulation of the complaint process of the Ombudsman’s Office

Administration of the Common Interest Community Management Information Fund

Enforcement of regulations under its authority

Responsibilities of the CIC Board

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Open to the public

Emergency regulations for Provisional Licensing were passed 11/13/2008.

Established a regulatory committee for the development of permanent regulations

Virginia Town Hall

◦ www.townhall.virginia.gov

CIC Board and Committee Meetings

fairfaxcounty.gov/consumer

fairfaxcounty.gov/consumer

fairfaxcounty.gov/consumer

fairfaxcounty.gov/consumer

fairfaxcounty.gov/consumer

Must hold a valid license

Provisional Licenses could be obtained through December 31, 2008 and are valid through June 11, 2011

Must secure a blanket fidelity bond or dishonesty insurance policy

Must establish internal controls and policies and have records audited annually

Common Interest Community Managers

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Must have a blanket fidelity bond or employee dishonesty insurance policy

◦ Insures against loss/theft committed by officers, directors, or persons employed by association

◦ Insures against loss/theft committed by common interest community manager or employees

Coverage must be lesser of $1 million or the amount of reserve balances plus ¼ of the aggregate annual assessment of association

Minimum coverage must be $10,000.00

Common Interest Community Associations

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Falls under the Director of the Virginia Department of Professional Occupational Regulation

Ombudsman must be an attorney in good standing with the Virginia State Bar

Reports to the Common Interest Community Board

Office of the Common Interest Community Ombudsman

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Assists individuals in understanding and exercising their rights in resolving issues with their associations

Maintains data on inquiries, requests for assistance, complaint notices and resolutions of disputes

Issues non-binding explanations of laws and regulations governing associations

Responsibilities of the Office of the Ombudsman

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Association Registration StaffPhone: 804-367-0776

Office of the Ombudsman Phone: 804-367-2941

Email: [email protected]

CIC Board Important Contact Numbers

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Created to promote the more efficient operation of common interest communities through research and education

Funded by assessments paid by the Common Interest Community Managers, fees for licensure and monetary penalties collected

Common Interest Community Management Information Fund

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Changes to the documents to be included in the packet

Fees that can be assessed

Fee payment responsibility

Delivery of the resale packet

Resale Certificates and Disclosure Packets

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For the six months prior to the request for the resale packet

◦ Copies of any approved minutes of the board of directors

◦ Copies of any approved minutes of the common interest community association member/owner meetings

Association Meeting Minutes

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Varies by how the community is managed

Inspection of the property

Preparation and issuance of resale certificate

Preparation and issuance of the disclosure packet

Authorized Fees for Resale Packet

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Common Interest Community Managed Communities - Fees

Inspection fee – no more than $100.00

Preparation and delivery of the resale packet◦ no more than

$150.00 -paper format

◦ no more than $125.00 – electronic format

Expedite fee – no more than $50.00

Additional copies – no more than $25.00/hard copy

Actual cost of hand delivery or overnight service

Post-closing fee – no more than $50.00

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Collected at the time of settlement – out of settlement proceeds

Seller responsible for all costs except the following which are the responsibility of the requestor and payable at settlement

◦ Costs of any updates

◦ Costs of financial updates

Collection of Resale Fees

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Settlement must occur within 90 days of delivery of the resale packet

Uncollected fees shall be the personal obligation of the seller

Settlement Timeline

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Fee for preparation and issuance of resale disclosure packet must equal actual cost

Actual cost cannot exceed $0.10 per page of copying costs or a total of $100 for all costs incurred

No requirement that these fees be paid at settlement

Self-Managed Property Owners’ Association

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May be requested by Settlement Agent

Must specify complete contact information

Shall be delivered within three (3) business days of the written request

Financial Updates

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Upon request, written escrow instructions shall be provided to the Settlement Agent

There shall be no fees charged When transmitting funds, the settlement agent

will provide◦ The complete name of the seller and purchaser◦ The address of the subject lot◦ The date of settlement◦ A brief explanation of the application of funds

transmitted

Escrow Instructions

Common Interest Community Resources

fairfaxcounty.gov/consumer

http://www.fairfaxcounty.gov/consumer/hoa.htm

fairfaxcounty.gov/consumer

http://www.dpor.virginia.gov/dporweb/cic_main.cfm

fairfaxcounty.gov/consumer

http://leg1.state.va.us/lis.htm

fairfaxcounty.gov/consumer

Budget for increased fees for filing annual report Develop written complaint process Review current insurance coverage Develop disclosure packet/resale certificate

request form Update disclosure packet/resale certificate

packets to include required documents

Plan of Action

Contact the Fairfax County Consumer Affairs Branch for more information:

12000 Government Center Parkway, Suite 433Fairfax, Virginia 22035703-222-8435 TTY 711

www.fairfaxcounty.gov/[email protected]

fairfaxcounty.gov/consumer

Contact Consumer Affairs