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1999 SESSION

992536354
HOUSE JOINT RESOLUTION NO. 645
Offered January 21, 1999
Requesting the Real Estate Board to study the efficiency and effectiveness of the remedies available for enforcement of the provisions of the Property Owners’ Association Act and the governing documents of these associations.
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Patrons-- McQuigg, Marshall and Rollison; Senator: Colgan
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Referred to Committee on General Laws
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WHEREAS, property owners’ associations, commonly known as homeowner associations, are the fastest growing segment of housing in the country and have been established and operate in the Commonwealth to serve and administer subdivisions governed by restrictive covenants and other governing documents; and

WHEREAS, these governing documents require the payment of a mandatory assessment to the association for the maintenance and upkeep of common areas for the common good of the members of the association; and

WHEREAS, there are many reasons for creating property owners’ associations—scarcity of land, protection of property values through aesthetic controls, lifestyle choices, and affordability; and

WHEREAS, homeowner associations, through their member-elected boards of directors, operate as a quasi-governmental bodies over their members and as such, are relied upon to act in the best interest of the membership; and

WHEREAS, increasingly, the boards of directors may not fully understand or may misconstrue their obligations to their membership under the associations’ governing documents or the law requiring, for example, access to association records and meetings of the board of directors; and

WHEREAS, there is a growing concern among individual members about the increasing number of violations of the association’s governing documents and state law by boards of directors; and

WHEREAS, enhancing the accountability of the boards of directors to their respective memberships is necessary to ensure compliance with governing documents and state law; and

WHEREAS, although current law allows aggrieved parties to file a lawsuit for damages or injunctive relief, or for any other remedy available at law or in equity, this remedy is costly and may not be the most effective way to resolve association disputes; and

WHEREAS, it is in the interest of the Commonwealth to provide for the lawful operation and management of property owners’ associations and to ensure the rights of individual members of these associations; and

WHEREAS, careful examination of the existing remedies afforded under the Property Owners’ Association Act is essential to effectively determine the need for any additional or alternative dispute resolution mechanisms; now, therefore, be it

RESOLVED by the House of Delegates, the Senate concurring, That the Real Estate Board be requested to study the efficiency and effectiveness of the remedies available for the enforcement of the Property Owners’ Association Act and the governing documents of these associations. In conducting its study, the Real Estate Board shall conduct public hearings and otherwise solicit input from interested parties on the scope and nature of the problems related to the enforcement of the Property Owners’ Association Act and the documents governing these associations.

All agencies of the Commonwealth shall provide assistance to the Real Estate Board for this study, upon request.

The Real Estate Board shall complete its work in time to submit its findings and recommendations to the Governor and the 2000 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.