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The Fairfax County Consumer Affairs Branch highlights some key points on 2008 Common Interest Community Legislation. The Common Interest Community Board consists of 11 members appointed by the governor. Some of the boards responsibilities include developing regulations, regulation of the complaint process, and the enforcement of these regulations.
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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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
Association Registration StaffPhone: 804-367-0776
Office of the Ombudsman Phone: 804-367-2941
Email: cicliaison@dpor.virginia.gov
CIC Board Important Contact Numbers
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
Settlement must occur within 90 days of delivery of the resale packet
Uncollected fees shall be the personal obligation of the seller
Settlement Timeline
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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
fairfaxcounty.gov/consumer
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/consumerconsumer@fairfaxcounty.gov
fairfaxcounty.gov/consumer
Contact Consumer Affairs
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