COMMON INTEREST COMMUNITY OMBUDSMAN REGULATIONS - Virginia

1. The association complaint must be in writing.2. A sample of the form, if any, on which the association complaint must be filed shall beprovided upon request.3. The association complaint procedure shall include the process by which complaints shallbe delivered to the association.4. The association shall provide written acknowledgment of receipt of the associationcomplaint to the complainant within seven days of receipt. Such acknowledgment shallbe hand delivered or mailed by registered or certified mail, return receipt requested, tothe complainant at the address provided, or if consistent with establishedassociation procedure, by electronic means provided the sender retains sufficientproof of the electronic delivery.5. Any specific documentation that must be provided with the association complaint shallbe clearly described in the association complaint procedure. In addition, to the extent thecomplainant has knowledge of the law or regulation applicable to the complaint, thecomplainant shall provide that reference, as well as the requested action or resolution.6. The association shall have a reasonable, efficient, and timely method for identifying andrequesting additional information that is necessary for the complainant to provide inorder to continue processing the association complaint. The association shall establish areasonable timeframe for responding to and for the disposition of the associationcomplaint if the request for information is not received within the required timeframe.7. Notice of the date, time, and location that the matter will be considered shall be handdelivered or mailed by registered or certified mail, return receipt requested, to thecomplainant at the address provided or, if consistent with established associationprocedure, delivered by electronic means, provided the sender retains sufficient proof ofthe electronic delivery, within a reasonable time prior to consideration as established bythe association complaint procedure.8. After the final determination is made, the written notice of final determination shall behand delivered or mailed by registered or certified mail, return receipt requested, to thecomplainant at the address provided or, if consistent with established associationprocedure, delivered by electronic means, provided the sender retains sufficient proof ofthe electronic delivery, within seven days.9. The notice of final determination shall be dated as of the date of issuance and includespecific citations to applicable association governing documents, laws, or regulationsthat led to the final determination, as well as the registration number of the association.If applicable, the name and license number of the common interest community managershall also be provided.4

10. The notice of final determination shall include the complainant's right to file a Notice ofFinal Adverse Decision with the Common Interest Community Board via the CommonInterest Community Ombudsman and the applicable contact information.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.18VAC48-70-60. Distribution of association complaint procedure.A.The association complaint procedure must be readily available upon request to all membersof the association and citizens.B.The association complaint procedure shall be included as an attachment to the resalecertificate or the association disclosure packet.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012.18VAC48-70-70. Maintenance of association record of complaint.A. A record of each association complaint filed with the association shall be maintained inaccordance with § 54.1-2354.4 A 1 of the Code of Virginia.B.Unless otherwise specified by the director or his designee, the association shall provide tothe director or his designee, within 14 days of receipt of the request, any document, book,or record concerning the association complaint. The director or his designee may extendsuch timeframe upon a showing of extenuating circumstances prohibiting delivery within14 days of receiving the request.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.18 VAC48-70-80. Failure of association to establish and utilize association complaintprocedure.Failure of an association to establish and utilize an association complaint procedure inaccordance with this chapter may result in the board seeking any of the remedies availablepursuant to Chapter 23.3 (§ 54.1-2345 et seq.) of Title 54.1 of the Code of Virginia.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012.5

Part IIIFinal Adverse Decision18VAC48-70-90. Filing of notice of final adverse decision.A complainant may file a notice of final adverse decision in accordance with § 54.1-2354.4 B ofthe Code of Virginia concerning any final adverse decision that has been issued by an associationin accordance with this chapter.1.The notice shall be filed within 30 days of the date of the final adverse decision.2.The notice shall be in writing on forms provided by the Office of the Common InterestCommunity Ombudsman. Such forms shall request the following information:a.Name and contact information of complainant;b.Name, address, and contact information of association;c.Applicable association governing documents; andd. Date of final adverse decision.3.The notice shall include a copy of the association complaint, the final adverse decision,reference to the laws and regulations the final adverse decision may have violated, anysupporting documentation related to the final adverse decision, and a copy of theassociation complaint procedure.4.The notice shall be accompanied by a 25 filing fee or a request for waiver pursuant to18VAC48-70-100.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.18VAC48-70-100. Waiver of filing fee.In accordance with § 54.1-2354.4 B of the Code of Virginia, the board may, for good causeshown, waive or refund the filing fee upon a finding that payment of the filing fee will causeundue financial hardship for the complainant.6

Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.18VAC48-70-110. Review of final adverse decision.Upon receipt of the notice of final adverse decision from the complainant, along with the filingfee or a board-approved waiver of filing fee, the Office of the Common Interest CommunityOmbudsman shall provide written acknowledgment of receipt of the notice to the complainantand shall provide a copy of the written notice to the association that made the final adversedecision. The notice of adverse decision will not be reviewed until the filing fee has beenreceived or a waiver of filing fee has been granted by the board.In accordance with § 54.1-2354.4 C of the Code of Virginia, additional information may berequested from the association that made the final adverse decision. Upon request, the associationshall provide such information to the Office of the Common Interest Community Ombudsmanwithin a reasonable time.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.18VAC48-70-120. Decision from the notice of final adverse decision.Upon review of the notice of final adverse decision in accordance with § 54.1-2354.4 C of theCode of Virginia, if the director determines that the final adverse decision may be in conflict withlaws or regulations governing common interest communities or interpretations thereof by theboard, the director may, in his sole discretion, provide the complainant and the association withinformation concerning such laws or regulations governing common interest communities orinterpretations thereof by the board.The determination of whether the final adverse decision may be in conflict with laws orregulations governing common interest communities or interpretations thereof by the board shallbe a matter within the sole discretion of the director. Such decision is final and not subject tofurther review. The determination of the director shall not be binding upon the complainant orthe association that made the final adverse decision.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.7

18VAC48-70-125. Referral for further action.In addition to the provisions of this chapter, any matter involving a violation of applicable lawsor regulations of the board may be referred for further action by the board in accordance with theprovisions of Chapter 23.3 (§ 54.1-2345 et seq.) of Title 54.1; Chapters 18 (§ 55.1-1800 etseq.), 19 (§ 55.1-1900 et seq.), and 21 (§ 55.1-2100 et seq.) of Title 55.1 of the Code ofVirginia; and the board's regulations.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume36, Issue 6, eff. December 11, 2019.8

Part IVOffice of the Common Interest Community Ombudsman18VAC48-70-130. Purpose, responsibilities, and limitations.The Office of the Common Interest Community Ombudsman shall carry out those activities asenumerated in § 54.1-2354.3 of the Code of Virginia.Historical Notes:Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia RegisterVolume 36, Issue 6, eff. December 11, 2019.9

NOTICEIncluded in this booklet are relevant excerpts from the Code of Virginia. Please note that theVirginia General Assembly is responsible for creating and amending the Code, not the CommonInterest Community Board. The version contained herein contains all changes, if any, that havebeen made by the General Assembly through the 2019 session. Any changes made during the2019 session became effective July 1, 2019, or October 1, 2019, unless otherwise noted. It is yourresponsibility to stay informed of revisions to the regulations and the statutes governing Virginiacommon interest communities. Please consult the General Assembly or your local library forannual changes.You can access the Code of Virginia online at http://law.lis.virginia.gov/vacodeCode of VirginiaTitle 54.1, Chapter 23.3Article 1. Common Interest Community Board§ 54.1-2345. (Effective October 1, 2019) Definitions.As used in this chapter, unless the context requires a different meaning:"Association" includes condominium, cooperative, or property owners' associations."Board" means the Common Interest Community Board."Common interest community" means real estate subject to a declaration with respect to which aperson, by virtue of the person's ownership of a lot subject to that declaration, is a member of theassociation and is obligated to pay assessments of common expenses, provided that for thepurposes of this chapter only, a common interest community does not include any time-shareproject registered pursuant to the Virginia Real Estate Time-Share Act (§ 55.1-2200 et seq.) or anyadditional land that is a part of such registration. "Common interest community" does not includean arrangement described in § 54.1-2345.1."Common interest community manager" means a person or business entity, including a partnership,association, corporation, or limited liability company, that, for compensation or valuableconsideration, provides management services to a common interest community."Declaration" means any instrument, however denominated, recorded among the land records ofthe county or city in which the development or any part thereof is located, that either (i) imposes onthe association maintenance or operational responsibilities for the common area as a regular annualassessment or (ii) creates the authority in the association to impose on lots, or on the owners oroccupants of such lots, or on any other entity any mandatory payment of money as a regular annual10

assessment in connection with the provision of maintenance or services or both for the benefit ofsome or all of the lots, the owners or occupants of the lots, or the common area. "Declaration"includes any amendment or supplement to the instruments described in this definition."Governing board" means the governing board of an association, including the executive organ of acondominium unit owners' association, the executive board of a cooperative proprietary lessees'association, and the board of directors or other governing body of a property owners' association."Lot" means (i) any plot or parcel of land designated for separate ownership or occupancy shownon a recorded subdivision plat for a development or the boundaries of which are described in thedeclaration or in a recorded instrument referred to or expressly contemplated by the declaration,other than a common area, and (ii) a unit in a condominium association or a unit in a real estatecooperative."Management services" means (i) acting with the authority of an association in its business, legal,financial, or other transactions with association members and nonmembers; (ii) executing theresolutions and decisions of an association or, with the authority of the association, enforcing therights of the association secured by statute, contract, covenant, rule, or bylaw; (iii) collecting,disbursing, or otherwise exercising dominion or control over money or other property belonging toan association; (iv) preparing budgets, financial statements, or other financial reports for anassociation; (v) arranging, conducting, or coordinating meetings of an association or the governingbody of an association; (vi) negotiating contracts or otherwise coordinating or arranging forservices or the purchase of property and goods for or on behalf of an association; or (vii) offeringor soliciting to perform any of the aforesaid acts or services on behalf of an association.2008, cc. 851, 871; 2019, c. 712.§ 54.1-2345.1. (Effective October 1, 2019) Certain real estate arrangements and covenants notdeemed to constitute a common interest community.A. An arrangement between the associations for two or more common interest communities toshare the costs of real estate taxes, insurance premiums, services, maintenance, or improvements ofreal estate, or other activities specified in their arrangement or declarations does not create aseparate common interest community, or an arrangement between an association and the owner ofreal estate that is not part of a common interest community to share the costs of real estate taxes,insurance premiums, services, maintenance, or improvements of real estate, or other activitiesspecified in their arrangement does not create a separate common interest community. Assessmentsagainst the lots in the common interest community required by such arrangement shall be includedin the periodic budget for the common interest community, and the arrangement shall be disclosedin all required public offering statements and disclosure packets.B. A covenant requiring the owners of separately owned parcels of real estate to share costs orother obligations associated with a party wall, driveway, well, or other similar use does not create acommon interest community unless the owners otherwise agree to create such community.2019, c. 712.11

§ 54.1-2346. (Effective October 1, 2019) License required; certification of employees;renewal; provisional license.A. Unless exempted by § 54.1-2347, any person, partnership, corporation, or other entity offeringmanagement services to a common interest community on or after January 1, 2009, shall hold avalid license issued in accordance with the provisions of this article prior to engaging in suchmanagement services.B. Unless exempted by § 54.1-2347, any person, partnership, corporation, or other entity offeringmanagement services to a common interest community without being licensed in accordance withthe provisions of this article shall be subject to the provisions of § 54.1-111.C. On or after July 1, 2012, it shall be a condition of the issuance or renewal of the license of acommon interest community manager that all employees of the common interest communitymanager who have principal responsibility for management services provided to a common interestcommunity or who have supervisory responsibility for employees who participate directly in theprovision of management services to a common interest community shall, within two years afteremployment with the common interest community manager, hold a certificate issued by the Boardcertifying the person possesses the character and minimum skills to engage properly in theprovision of management services to a common interest community or shall be under the directsupervision of a certified employee of such common interest community manager. A commoninterest community manager shall notify the Board if a certificated employee is discharged or inany way terminates his active status with the common interest community manager.D. It shall be a condition of the issuance or renewal of the license of a common interest communitymanager that the common interest community manager shall obtain and maintain a blanket fidelitybond or employee dishonesty insurance policy insuring the common interest community manageragainst losses resulting from theft or dishonesty committed by the officers, directors, and personsemployed by the common interest community manager. Such bond or insurance policy shallinclude coverage for losses of clients of the common interest community manager resulting fromtheft or dishonesty committed by the officers, directors, and persons employed by the commoninterest community manager. Such bond or insurance policy shall provide coverage in an amountequal to the lesser of 2 million or the highest aggregate amount of the operating and reservebalances of all associations under the control of the common interest community manager duringthe prior fiscal year. The minimum coverage amount shall be 10,000.E. It shall be a condition of the issuance or renewal of the license of a common interest communitymanager that the common interest community manager certifies to the Board (i) that the commoninterest community manager is in good standing and authorized to transact business in Virginia; (ii)that the common interest community manager has established a code of conduct for the officers,directors, and persons employed by the common interest community manager to protect againstconflicts of interest; (iii) that the common interest community manager provides all managementservices pursuant to written contracts with the associations to which such services are provided;(iv) that the common interest community manager has established a system of internal accountingcontrols to manage the risk of fraud or illegal acts; and (v) that an independent certified publicaccountant reviews or audits the financial statements of the common interest community managerat least annually in accordance with standards established by the American Institute of CertifiedPublic Accountants or by any successor standard-setting authorities.12

2008, cc. 851, 871; 2011, cc. 334, 605; 2019, c. 712.§ 54.1-2347. (Effective October 1, 2019) Exceptions and exemptions generally.A. The provisions of this article shall not be construed to prevent or prohibit:1. An em

Derived from Virginia Register Volume 28, Issue 19, eff. July 1, 2012; amended Virginia Register Volume 33, Issue 15, eff. May 1, 2017; Volume 36, Issue 6, eff. December 11, 2019. 18VAC48-70-50. Association complaint procedure requirements. The association complaint procedure shall be in writing and shall include the following