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2018 SESSION

18103497D
HOUSE BILL NO. 1121
Offered January 10, 2018
Prefiled January 10, 2018
A BILL to amend and reenact 54.1-2351 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 55-509.01, relating to the Property Owners' Association Act; Common Interest Community Board; compliance of property owners' associations with the Virginia Nonstock Corporation Act.
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Patron-- Convirs-Fowler
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Referred to Committee on General Laws
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Be it enacted by the General Assembly of Virginia:

1. That 54.1-2351 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 55-509.01 as follows:

54.1-2351. General powers and duties of Board concerning associations.

A. The Board may adopt, amend, and repeal rules and regulations and issue orders consistent with and in furtherance of the objectives of this chapter, but the. The Board may not shall intervene in the internal activities of an association except to the extent necessary to prevent or cure violations of (i) this chapter or of, (ii) the chapter pursuant to which the association is created, or (iii) the Virginia Nonstock Corporation Act ( 13.1-801 et seq.), if the association is subject to that Act. The Board may prescribe forms and procedures for submitting information to the Board.

B. If it appears that any governing board has engaged, is engaging, or is about to engage in any act or practice in violation of this chapter, Chapter 4.2 ( 55-79.39 et seq.), 21 ( 55-360 et seq.), 24 ( 55-424 et seq.), or 26 ( 55-508 et seq.) of Title 55, or any of the Board's regulations or orders, the Board without prior administrative proceedings may bring suit in the appropriate court to enjoin that act or practice or for other appropriate relief. The Board is not required to post a bond or prove that no adequate remedy at law exists.

C. The Board may intervene in any action or suit involving a violation by a declarant or a developer of a time-share project of this chapter, Chapter 4.2 ( 55-79.39 et seq.), 21 ( 55-360 et seq.), 24 ( 55-424 et seq.), or 26 ( 55-508 et seq.) of Title 55, or any of the Board's regulations or orders.

D. The Board may accept grants-in-aid from any governmental source and may contract with agencies charged with similar functions in this or other jurisdictions in furtherance of the objectives of this chapter.

E. The Board may cooperate with agencies performing similar functions in this and other jurisdictions to develop uniform filing procedures and forms, uniform disclosure standards, and uniform administrative practices, and may develop information that may be useful in the discharge of the Board's duties.

F. In issuing any cease and desist order the Board shall state the basis for the adverse determination and the underlying facts.

G. Without limiting the remedies that may be obtained under this chapter, the Board, without compliance with the Administrative Process Act ( 2.2-4000 et seq.), shall have the authority to enforce the provisions of this section and may institute proceedings in equity to enjoin any person, partnership, corporation, or any other entity violating this chapter, Chapter 4.2 ( 55-79.39 et seq.), 21 ( 55-360 et seq.), 24 ( 55-424 et seq.), or 26 ( 55-508 et seq.) of Title 55, or any of the Board's regulations or orders. Such proceedings shall be brought in the name of the Commonwealth by the Board in the circuit court or general district court of the city or county in which the unlawful act occurred or in which the defendant resides.

H. The Board may assess a monetary penalty to be paid to the Common Interest Community Management Information Fund of not more than $1,000 per violation against any governing board that violates any provision of this chapter, Chapter 4.2 ( 55-79.39 et seq.), 21 ( 55-360 et seq.), 24 ( 55-424 et seq.), or 26 ( 55-508 et seq.) of Title 55, or any of the Board's regulations or orders. In determining the amount of the penalty, the Board shall consider the degree and extent of harm caused by the violation. No monetary penalty may be assessed under this chapter, Chapter 4.2 ( 55-79.39 et seq.), 21 ( 55-360 et seq.), 24 ( 55-424 et seq.), or 26 ( 55-508 et seq.) of Title 55, or any of the Board's regulations or orders unless the governing board has been given notice and an opportunity to be heard pursuant to the Administrative Process Act ( 2.2-4000 et seq.). The penalty may be sued for and recovered in the name of the Commonwealth.

55-509.01. Applicability of the Virginia Nonstock Corporation Act.

An association subject to the provisions of the Virginia Nonstock Corporation Act ( 13.1-801 et seq.) shall comply with all provisions of the declaration, this chapter, and that Act.