VA Legislative Update - effective 7/1/11

TimB4 (Tennessee)
Posts: 21,062

Posted:

All,

As an FYI, I received the following info via our Associations legal office newsletter:

The 2011 legislative session resulted in a number of significant changes that impact the Virginia Property Owners’ Association Act, the Condominium Act, the Common Interest Community Manager statutes, and other provisions of the Virginia Code which have an impact on community associations. Unless otherwise noted, the legislation addressed in this newsletter will take effect on July 1, 2011.

Link to newsletter: http://www.reesbroome.com/community/May_2011.pdf

Tim

BevM (Virginia)
Posts: 34

Posted:

Thanks Tim for putting this out there- I am still puzzeled by this Common Interest Community thing and whether our "property Manager" has to be licensed or not. There seems to be conflicting information in the codes.

54.1-2345.“Common interest community manager” means a person or business entity, including but
not limited to a partnership, association, corporation, or limited liability company, who, for
compensation or valuable consideration, provides management services to a common
interest community.

Then you have this as an exemption ...an employee of an association providing management services for that association’s common interest community;

Excluded from the licensing requirement is an employee of a duly licensed common interest community manager providing management services within the scope of the individual’s employment by a duly licensed common interest community manager; an employee of an association providing management services for that association’s common interest community; a resident of a common interest community acting without compensation,; a member of the governing board of an association acting without compensation ; a person acting as a receiver or trustee for bankruptcy in the performance of his duties as such or any person acting under order of any court from providing management services for a common interest community; a duly licensed attorney-at-law representing an association or a common interest community manager in any business that constitutes the practice of law; a duly licensed certified public accountant providing bookkeeping or accounting services to an association or a common interest community manager; a duly licensed real estate broker or agent selling, leasing, renting, or managing lots within a common interest community; or an association, exchange agent, exchange company, managing agent, or managing entity of a time-share project registered pursuant to the Virginia Real Estate Time-Share Act (§ 55-360 et seq.) from providing management services for such time-share project.

And then this:
Common Interest Community Manager Licensing
The Act defines "Common interest community manager" as a person or business entity, including but not limited to a partnership, association, corporation, or limited liability company who, for compensation or valuable consideration, provides management services to a common interest community. Additionally, the Act defines “Management services” as an entity who is (i) acting with the authority of an association in its business, legal, financial, or other transactions with association members and nonmembers; (ii) executing the resolutions and decisions of an association or, with the authority of the association, enforcing the rights 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 to an association; (iv) preparing budgets, financial statements, or other financial reports for an association; (v) arranging, conducting, or coordinating meetings of an association or the governing body of an association; (vi) negotiating contracts or otherwise coordinating or arranging for services or the purchase of property and goods for or on behalf of an association; or (vii) offering or soliciting to perform any of the aforesaid acts or services on behalf of an association

So confused on this issue.
Can you shed any light?

TimB4 (Tennessee)
Posts: 21,062

Posted:

Bev,

The firm we use for our legal services published an update about these guidelines.
Here is the link:

http://www.reesbroome.com/newsroom/canl/11-07-21_VACommonInterest.php

It appears that it's still up in the air a little bit. As I understand it:

Management Services is basically running the Association (scheduling meetings, paying bills, collecting assessments, keeping records, etc.).

A Management Company or an independent Community Manager needs to be licensed.
An employee of either of the above, does not require the license (as they work under the parent license). However, there may be other licensing that is needed for them.

The following individuals also do not need to be licensed:

A volunteer doing the management services for zero compensation (self managed Associations)
A court or bank ordered receiver (if your Association is in receivership)
An Attorney who is doing business for the Association or manager.
A CPA or Accounting firm doing book keeping for the Association and/or manager.
A Realtor managing rental properties for an Association.

It's also my understanding that a resident or member of the Association doing only bookkeeping services is not required to be licensed. However, I can't quickly find the reference that stated this.

Tim