Bill Text: VA SB628 | 2012 | Regular Session | Chaptered
Bill Title: Virginia Property Owners' Association Act; limitation on certain contracts and leases by declarant.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-04-06 - Governor: Acts of Assembly Chapter text (CHAP0671) [SB628 Detail]
Download: Virginia-2012-SB628-Chaptered.html
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Be it enacted by the General Assembly of Virginia: 1. That § 55-509.2 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 55-509.1:1 as follows: § 55-509.1:1. Limitation on certain contracts and leases by declarant. A. If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, no contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a period in excess of five years. Any such contract or agreement may be terminated without penalty by the association or its board of directors upon not less than 90 days' written notice to the other party given no later than 60 days after the expiration of the period of declarant control contemplated by the declaration. B. If entered into any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract or lease entered into with the declarant or any entity controlled by the declarant, management contract, or employment contract that is directly or indirectly made by or on behalf of the association, its board of directors, or the lot owners as a group may be renewed for periods not in excess of five years; however, at the end of any five-year period, the association or its board of directors may terminate any further renewals or extensions thereof. C. If entered into at any time prior to the expiration of the period of declarant control contemplated by the declaration, any contract, lease, or agreement, other than those subject to the provisions of subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable to the association at the time entered into under the circumstances. D. This section shall be strictly construed to protect the rights of the lot owners. § 55-509.2. Documents to be provided by declarant upon transfer of control. Unless previously provided to the board of directors of the
association, once the majority of the members of the board of directors other
than the declarant are owners of improved lots in the association and the
declarant no longer holds a majority of the votes in the association, the
declarant shall provide to the board of directors or its designated agent the
following: (i) all association books and records held by or controlled by the
declarant, including without limitation, minute books and rules and regulations
and all amendments thereto which may have been promulgated; (ii) a statement of
receipts and expenditures from the date of the recording of the association
documents to the end of the regular accounting period immediately succeeding
the first election of the board of directors by the home owners, not to exceed If the association is managed by a common interest community
manager in which the declarant, or its principals, 2. That the provisions of § 55-509.1:1 of this act shall apply only to contracts or leases entered into on or after July 1, 2012. |
