Town Crier Articles

Know Your Code - The Virginia Property Owners Association Act and the Virginia Nonstock Corporation Act
Posted on October 1, 2021 6:32 AM by Jim Carey
Categories: NTRA Business
 
Virginia, like many states has established a statutory framework for Homeowners Associations like the New Town Residential Association (NTRA) to operate.  Two primary laws govern the operation of our organization.
 
The Virginia Property Owners’ Association Act (VA Code Ann. § 55.1-1800 to 1836) provides the legal framework for operation of homeowner associations in the Commonwealth. The Act provides and clarifies the authority granted to an HOA and its Board of Directors. It establishes many of the association’s rights and responsibilities including its obligation to conduct open meetings; keep detailed books and records, and make them available to members. The Act provides the authority to enforce the Declaration of Covenants, Conditions, and Restrictions and levy financial penalties; the power to levy special assessments; and secure liens and other enforcement remedies to secure compliance with our Declaration of Covenants, Conditions, and Restrictions.
 
One of the reasons for updating the NTRA Governing Documents is to bring them into compliance with changes in the Virginia Property Owners’ Association Act since 2005 when our current documents were approved. Some of the many changes that had to be factored into our revisions include:
  • Allowing electronic means for meetings and voting for association meetings
  • Permitting solar power installations. HOAs can impose “reasonable restrictions” regarding the size, place, and manner of placement of such collection devices.
  • Changes to HOA obligations in preparing the Disclosure Packet 
  • Requirement for the completion of a reserve study at least once every five years and a review of the reserve study annually with adjustments made as needed to maintain reserves.
So whenever you see references in the drafts to Va. Code Ann. § 55.1 18XX, think VPOAA. If you are interested in reading the Act, click on this link Virginia Property Owners’ Association Act.
 
Similarly, the NTRA Bylaws are sprinkled with references to the Virginia Nonstock Corporation Act (VA Code Ann. § 13.1-801 to 945) which governs how the NTRA must operate as a nonprofit organization. This law contains the requirements for us to have Articles of Incorporation (proposed Articles of Restatement) and Bylaws. It also explains what would happen if the NTRA was ever dissolved. This Act applies to all nonprofits in Virginia, so some provisions may not apply to our association (e.g. mergers, foreign operations, etc.). This Act also gives the Association “powers as an individual to do all things necessary or convenient to carry out its business and affairs” including borrow, mortgage, pledge or deed property (§ 13.1-826, para.6). So the Amended Bylaws reflect that authority. 
 
By updating our Governing Documents to reflect these important State requirements, we ensure that the NTRA remains in good standing in the Commonwealth of Virginia.
Comments
No Comments