CHAPTER 26
PROPERTY OWNERS’ ASSOCIATION ACT

§ 55-508. Applicability. - -
    A. This chapter shall apply to developments subject to a declaration initially recorded after January 1, 1959, and property owners' associations incorporated or otherwise organized after such date. The provisions of this chapter which exclude the applicability of this chapter to developments which impose on the association maintenance or operational responsibilities or on the owners or occupants of lots a mandatory payment of money less then $150 per year per lot as a regular annual assessment shall not be applied retroactively to any development subject to a declaration recorded prior to July 1, 1991. This chapter shall not be construed to affect the validity of any provision of any declaration recorded prior to July 1, 1989, but to the extent the declaration is silent, the provisions of this chapter shall apply. If any one lot in a development is subject to the provisions of this chapter, all lots in the development shall be subject to the provisions of this chapter notwithstanding the fact that such lots would otherwise be excluded from the provisions of this chapter. Notwithstanding any provisions of this chapter, a declaration may specifically provide for the applicability of the provisions of this chapter. The granting of rights in this chapter shall not be construed to imply that such rights did not exist with respect to any development created in this Commonwealth before July 1, 1989. Sections 55-511 and 55-512 shall not apply to contracts entered into prior to July 1, 89, for the sale of a lot.
    B. This chapter shall not apply to the (i) provisions of documents of, (ii) operations of any association governing, or (iii) relationship of a member to any association governing condominiums created pursuant to the Condominium Act (§ 55-79.39 et seq.), cooperatives created pursuant to the Virginia Real Estate Cooperative Act (§ 55-424 et seq.), time-shares created pursuant to the Virginia Real Estate Time-Share Act (§ 55-360 et seq.), or membership campgrounds created pursuant to the Virginia Membership Camping Act (§ 59.1-311 et seq.). Nor shall this chapter apply to any nonstock, nonprofit, taxable corporation with nonmandatory membership which, as its primary function, makes available golf, ski and other recreational facilities to both its members and the general public.

§ 55-509. Definitions. - - As used in this chapter, unless the context requires a different meaning:
"Act" means the Virginia Property Owners' Association Act.
"Association" means the property owners' association.
"Board of Directors" means the executive body of a property owners' association, or a committee which is exercising the power of the executive body by resolution or bylaw.
"Common area" means property within a development which is owned, leased or required by the declaration to be maintained or operated by a property owners' association for the use of its members and designated as common area in the declaration.
"Declaration" means any instrument, however denominated, recorded among the land records of the county or city in which the development or any part thereof is located, that either (i) imposes on the association maintenance or operational responsibilities for the common area in an amount in excess of $150 per year per lot as a regular annual assessment or (ii) creates the authority in the association to impose on lots, or on the owners or occupants of such lots, or on any other entity any mandatory payment of money in an amount in excess of $l50 per year per lot as a regular annual assessment in connection with the provision of maintenance and/or services for the benefit of some or all of the lots, the owners or occupants of the lots, or the common area. "Declaration’s includes any amendment or supplement to the instruments described in this definition. "Declaration" shall not include -a. declaration of a condominium, real estate cooperative, Time-Share project or campground.
"Development" means real property located within this Commonwealth subject to a declaration which contains both lots, at least some of which are residential or are occupied for recreational purposes, and common areas with respect to which any person, by virtue of ownership of a lot, is a member of an association and is obligated to pay assessments provided for in a declaration.
"Lot" means (i) any plot or parcel of land designated for separate ownership or occupancy shown on a recorded subdivision plat for a development or the boundaries of which are described in the declaration 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 estate cooperative if the condominium or cooperative is a part of a development.
"Property owners’ association" or association" means an incorporated or unincorporated entity upon which responsibilities are imposed and to which authority is granted in the declaration. A property owners' association shall not include the association formed pursuant to the Condominium Act (§55-79.39 et seq.), the Virginia Real Estate Cooperative Act (§ 55-424 et seq.), the Virginia Real Estate Time-Share Act (§ 55-360 et seq.), or the Virginia Membership Camping Act (§ 59.1-311 et seq.).

§ 55-510. Access to association records. - -
    A. The association shall keep detailed records of receipts and expenditures affecting the operation and administration of the association.
    B. Subject to the provisions of subsection C of this section, all books and records kept by or on behalf of the association, including, but not limited to, the association's membership list and addresses, which shall not be used for purposes of commercial solicitation, shall be available for examination and copying by a member in good standing or his authorized agent. This right of examination shall exist without reference to the duration of membership and may be exercised only during reasonable business hours or at a mutually convenient time and location and upon five days' written notice.
    C. Books and records kept by or on behalf of an association may be withheld from inspection and copying to the extent that they concern:

• 1. Personnel matters or a person' 5 medical records;
• 2. Communication with --legal counsel or attorney work product;
• 3. Transactions currently in negotiation and agreements containing confidentiality requirements;
• 4. Pending litigation;
• 5. Pending matters involving formal proceedings for enforcement of the association documents or rules and regulations promulgated pursuant thereto;
• 6. Disclosure of information in violation of law; or
• 7. Meeting minutes or other records of an executive session of the board of directors held in accordance with subsection E of this section.

§ 55-511. Contract disclosure statement; right of cancellation. - -
    A. A person selling a lot shall disclose in the contract that (i) the lot is located within a development which is subject to the Virginia Property Owners' Association Act, (ii) the Act requires the seller to obtain from the property owners' association an association disclosure packet and provide it to the purchaser, (iii) the purchaser may cancel the contract within three days after receiving the association disclosure packet or being notified that the association disclosure packet will not be available, and (iv) the right to receive the association disclosure packet and the right to cancel the contract are waived conclusively if not exercised before settlement.
    B. If the contract does not contain the disclosure required by subsection A the purchaser's sole remedy is to cancel the contract prior settlement.
    C. The information contained in the association disclosure packet shall be current as of a specified date within thirty days of the date of the contract. The purchaser may cancel the contract: (i) within three days after the date of the contract, if on or before the date that the purchaser signs the contract, the purchaser receives the association disclosure packet or is notified that the association disclosure packet will not be - available; (ii) within three days after receiving the association disclosure packet if the association disclosure packet or notice -that the association disclosure packet will not be available is- hand delivered; or (iii) within six days after the postmark date if the association disclosure packet or notice that the--- - association disclosure packet will not be available is sent to the purchaser by Unites States mail. The purchaser may also cancel the contract at any time prior to settlement if the purchaser has not been notified that the association disclosure packet will not be available and the association disclosure packet is not delivered to the purchaser. Notice of cancellation shall be hand delivered or sent by United States mail, return receipt requested, to the owner. Such cancellation shall be without penalty and the seller shall cause any deposit to be returned promptly to -the purchaser.
    D. If more than six months have elapsed- between the- contract date and the date of settlement, the purchaser may - submit a copy of the contract to the property owners' association with a request for assurance that the information required by § 55-512 previously furnished pursuant to subsection A of this section remains materially unchanged, or, if there have been material changes, a statement specifying such changes. The purchaser shall be provided with such assurances or such statement within ten days of the receipt of such request by the property owners' association. The purchaser may be required to pay a fee for the preparation and issuance of the requested assurances. The fee shall reflect the actual cost incurred by the property owners' association in providing such assurances but shall not exceed $50. If settlement has not occurred and the purchaser has not canceled the contract in accordance with subsection C of this section, the purchaser may renew requests for assurances as provided herein every six months.
    E. Any rights of the purchaser to cancel the contract provided by this chapter are waived conclusively if not exercised prior to settlement.
    F. The rights afforded a purchaser pursuant to this section and § 55-512 may be waived in writing by the purchaser in a separate document.

§ 55-512. Association disclosure packet. - -
NOTE: Realtors - - Protect your Sale
Request a copy of the Seller's written request for a Disclosure Package to the Association indicating:

1. date of submission and
2. check number for Fee payment

Carriage Mill Homeowners Association provides timely and complete disclosure packets to members. The Association will not provide these documents without the submission of a written request and the required fee of $100.00. Virginia statutes afford the Association a period of fourteen (14) days to investigate the property history, prepare the documents and make them available to the seller. Under no circumstances will documents be available in less than fourteen (14) days after receipt of a written request and required fee(s).
Be Advised - Failure to provide a Disclosure Package is a violation of State and Association regulations. If a "For Sale" sign is posted and the seller fails to submit a written request for a Disclosure Package in a timely fashion, the Association will take whatever steps necessary to protect the membership and Association interest. Such action may delay or jeopardize your sale.

    A. Subject to the provisions of subsection B of this section, the association shall make available to an owner or his authorized agent within fourteen (14) days after receipt of a written request therefor and receipt of the appropriate fee, an association disclosure packet, which, upon receipt, the seller shall deliver to the purchaser. If hand delivered, the written request and fee are deemed received on the date of delivery. If sent by United States mail, the request and fee are deemed received six days after the postmark date. An association disclosure packet shall contain the following:

• 1. The name of the association and, if incorporated, the state in which the association is incorporated and the name and address of its registered agent in Virginia;
• 2. A statement of any capital expenditure anticipated by the association within the current year and, where available, the two succeeding fiscal years;
• 3. A statement, including the amount of all assessments and any other mandatory fees or charges currently imposed by the association applicable to the lot being purchased and to the right of use of common areas; and the status of the account;
• 4. A statement whether there is any other entity or facility to which the lot owner may be liable for fees or other charges;
• 5. A statement or a summary of the status and amount of any reserve or replacement fund and any portion of the fund allocated by the board of directors for a specified project;
• 6. A copy of the association's current budget or a summary thereof, and a copy of its statement of income and expenses or statement of its financial-condition for the last fiscal year for which such statement is available;
• 7. A statement of the nature of any pending --suit or unpaid judgment to which the association is a party which either could or would have a material impact on the association or its members or which relates to the lot being purchased;
• 8. A statement setting forth- all insurance coverage, including any fidelity bond, maintained by the association;
• 9. A statement as to whether any notice has been given to the seller that any improvement or alteration made to the lot, or uses made of the lot or common area assigned thereto, are in violation of any of the instruments referred to in subdivision 10 of this subsection; and
• 10. A copy of the current declaration, the association's articles of incorporation and bylaws, and any rules and regulations or architectural guidelines promulgated by the association.

• 1. A disposition of a lot by gift;
• 2. A disposition of a lot pursuant to court order if the court so directs;
• 3. A disposition of a lot by foreclosure or deed in lieu of foreclosure; or
• 4. A disposition of a lot in a development where all the lots are restricted to nonresidential use.
• 5. A disposition of a lot to a person in the business of selling real estate who offers lots for his own account.

§ 55-513. Adoption and enforcement of rules. - -
    A. The board of directors of the association shall have the power to establish, adopt, and enforce rules and regulations with respect to the use of common areas and with respect to such other areas of responsibility assigned to the association by the declaration, except where expressly reserved by the declaration to the members. Rules and regulations may be adopted by resolution and shall be reasonably published or distributed throughout the development. A majority of votes cast, in person or by proxy, at a meeting convened in accordance with the provision of the association's bylaws and called for that purpose, shall repeal or amend any rule or regulation adopted by the board of directors. Rules and regulations may be enforced by any method normally available to the owner of private property in Virginia, including, but not limited to, application for injunctive relief or damages, during which the court may award to the association court costs and reasonable attorneys' fees.
    B. The board of directors of the association shall also have the power to the extent the declaration or rules and regulations duly adopted pursuant thereto expressly so provide, to assess charges against any member for any violation of the declaration or rules and regulations for which the member or his family members, tenants, guests, or other invitees are responsible. Before any such charges may be assessed, the member shall be given an opportunity to be heard and to be represented by counsel before the board of directors or other tribunal specified in the documents. Notice of a hearing shall be hand delivered or mailed by registered or certified mail, return receipt requested, to the member at the address of record with the association at least fourteen days prior to the hearing. The amount of any- charges so assessed shall not exceed fifty dollars for a single offense or ten dollars per day for any offense of a continuing nature and shall be treated as an assessment against the member's lot for the purposes of § 55-516.

§ 55-514. Authority to levy special assessments. - -
    A. In addition to all other assessments which are authorized in the declaration, the board of directors of an association shall have the power to levy a special assessment against its members if the purpose in so doing is found by the board to be in the best interests of the association and the proceeds of the assessment are used primarily for the maintenance and upkeep, including capital expenditures; of the common area. A majority of votes cast, in person or by proxy, at a meeting of the membership convened in accordance with the provisions of the association's bylaws within sixty days of promulgation of the notice of the assessment shall rescind or reduce the special assessment. No director or officer of the association shall be liable for failure to perform his fiduciary duty if a special assessment for the funds necessary for the director or officer to perform his fiduciary duty is rescinded by the owners pursuant to this section, and the association shall indemnify such director or officer against any damage resulting from any claimed breach of fiduciary duty arising therefrom.
    B. The failure of a member to pay the special assessment allowed by subsection A shall entitle the association to the lien provided by § 55-516 as well as any other rights afforded a creditor under law.
    C. The failure of a member to pay the special assessment allowed by subsection A will provide the association with the right to deny the member access to any or all of the common areas. Notwithstanding the immediately preceding sentence, direct access to the member's lot over any road within the development which is a common area shall not be denied the member:

§ 55-515. Compliance with declaration. - - Every lot owner, and all those entitled to occupy a lot shall comply with all lawful provisions of this chapter and all provisions of the declaration. Any lack of such compliance shall be grounds for an action or suit to recover sums due, for damages or injunctive relief, or for any other remedy available at law or in equity, maintainable by the association, or by its executive organ or any managing agent on behalf of such association, or in any proper case, by one or more aggrieved lot owners on their own behalf or as a class action. The prevailing party shall be entitled to recover reasonable attorneys' fees and costs expended in the matter.

§ 55-516. Lien for assessments. - -
    A. Once perfected, the association shall have a lien on every lot for unpaid assessments levied against that lot in accordance with the provisions of this chapter and all lawful provisions of the declaration. The lien, one perfected, shall be prior to all other subsequent liens and encumbrances except (i) real estate - tax liens on that lot, (ii) liens and encumbrances recorded prior to the recordation of the declaration, and (iii) sums unpaid on and owing under any mortgage or deed of trust recorded prior to the perfection of said lien. The provisions of this subsection - shall not affect the priority of mechanics' and materialmen’s liens. Notice of a memorandum of lien to a holder of a credit line deed of trust under § 55-58.2 shall be given in the same fashion as if the association's lien were a judgment.
    B. The association, in order to perfect the lien given by this section, shall file before the expiration of twelve months from the time such assessment became due and payable in the clerk's office in the county or city in which such development is situated, a memorandum, verified by the oath of the principal officer of the association, or such other officer or officers as the declaration may specify, which contains the following:

• 1. The name of the development;
• 2. A description of the lot;
• 3. The name or names of the persons constituting the owners of that lot;
• 4. The amount of unpaid assessments currently due or past due relative to such lot together with the date when each fell due;
• 5. The date of issuance of the memorandum;
• 6. The name of the association and the name and current address of the person to contact to arrange for payment or release of the lien; and
• 7. A statement that the association is obtaining a lien in accordance with the provisions of the Virginia Property Owners' Association Act as set forth in Chapter 26 (§ 55-508 et seq.) of Title 55 of the Code of Virginia.

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