a

Facebook

Twitter

Copyright 2015 Libero Themes.
All Rights Reserved.

8:30 - 6:00

Our Office Hours Mon. - Fri.

703-406-7616

Call For Free 15/M Consultation

Facebook

Twitter

Search
Menu
Westlake Legal Group > Posts tagged "community association"

Virginia – Graham v. Community Management Corp.

Westlake Legal Group virginia-graham-v-community-management-corp Virginia – Graham v. Community Management Corp. Virginia Supreme Court Virginia management issues law Jeremy Moss HOA HEATHER GRAHAM v. COMMUNITY MANAGEMENT CORPORATION Heather Graham Court Opinions condominium Community Management Company community association common interest community

Graham v. Community Management Corp.

The Supreme Court affirmed the judgment of the trial court dismissing Plaintiff’s action seeking to recover attorney fees she incurred in defending a prior action. The trial court concluded that Rule 3:25 precluded Plaintiff from requesting attorney fees because she failed to request such fees in the underlying litigation.

Graham v. CMC

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

Virginia – Jeremy Moss named to ‘Up & Coming Lawyers’ Class of 2017 by Virginia Lawyers Weekly

Westlake Legal Group virginia-jeremy-moss-named-to-up-coming-lawyers-class-of-2017-by-virginia-lawyers-weekly Virginia – Jeremy Moss named to ‘Up & Coming Lawyers’ Class of 2017 by Virginia Lawyers Weekly Virginia Lawyers Weekly Virginia Vandeventer Black Up & Coming Lawyers real estate Legal News law Jeremy Moss HOA condominium community association common interest community award

‘Up & Coming Lawyers’ for 2017 named

Virginia Lawyers Weekly has announced the 2017 class of “Up & Coming Lawyers.” This awards program, started last year, recognizes lawyers across the commonwealth who are making their mark within their first 10 years of practice. These are the lawyers who are the leaders of the profession in the future.

Virginia Lawyers Weekly has announced the 2017 class of “Up & Coming Lawyers,” a class which includes TheMossReport editor, Jeremy R. Moss!

“Up & Coming Lawyers,” started in 2016, recognizes lawyers across Virginia who are making their mark within their first 10 years of practice and are the leaders of the profession in the future.

The Class of 2017 honorees are:

  • Faith A. Alejandro, Sands Anderson, Richmond
  • Lindsey A. Coley, Gentry Locke, Roanoke
  • Robert E. Dean, Robert Dean, Law, Roanoke
  • Stacey C. Forbes, Reed Smith LLP, sponsorship was
  • Nicholas J. Lou, Redmon, Peyton & Braswell LLP, Alexandria
  • Helen O’Beirne Hardiman, Housing Opportunities Made Equal, Richmond
  • Nicholas Johnson, Berenzweig Leonard LLP, sponsorship was
  • Jamilah D. LeCruise, Law Office of J. D. LeCruise, Norfolk
  • Stacy E. Lee, Harrell & Chambliss, Richmond
  • Jeremy R. Moss, Vandeventer Black LLP, Norfolk
  • Cartwright R. “Cart” Reilly, Williams Mullen, Virginia Beach
  • Simon Y. Sandoval-Moshenberg, Legal Aid Justice Center, Charlottesville
  • Elizabeth Burgin Waller, Woods Rogers PLC, Roanoke
  • Julia A. Yolles, The Havrilak Law Firm, PC, Fairfax

The honorees will be celebrated at a reception hosted by Virginia Lawyers Weekly on Oct. 26 at the John Marshall Hotel in Richmond and will be profiled in a special supplement that will be distributed at the event and inserted into Virginia Lawyers Weekly in late October.

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

District of Columbia – Wilfred Welsh v. Beverly McNeil and Alvin Elliott (D. C. Court of service ‘ argument)

Westlake Legal Group district-of-columbia-wilfred-welsh-v-beverly-mcneil-and-alvin-elliott-d-c-court-of-service-argument District of Columbia – Wilfred Welsh v. Beverly McNeil and Alvin Elliott (D. C. Court of service ' argument) Wilfred Welsh Vandeventer Black TheMossReport rule enforcement Oxford House Legal News law Jeremy Moss group home Fair Housing Act fair housing District of Columbia discrimination DC Court of Appeals DC Court Opinions community association common interest community Beverly McNeil Alvin Elliott

On June 29 2017, the District of Columbia Court of service ‘ argument ts o a decision in Wilfred Welsh v. Beverly McNeil and Alvin Elliott (argued more than a year earlier, on May 12, 2016 and embedded below).

In a decision that could impact conduct agency by an individual director and have a chilling effect on actions by individual members, the Court held that a board’s granting of a waiver on behalf of the association bound the entire association, including individual members, precluding say from enforcing a restrictive covenant.

The Court also ruled that an individual director could be the eu personally liable under the Fair Housing free shipping) and D. C. human rights law for certain behaviors. The matter was remanded back to Superior Court for review, so more to come…

Wilfred Welsh v. Beverly McNeil and Alvin Elliott (D. C. Court of service ‘ argument)

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

Virginia – A Corporate Formality with Significant Implications: Carefully Select your Community Association’s Registered Agent

Westlake Legal Group virginia-a-corporate-formality-with-significant-implications-carefully-select-your-community-associations-registered-agent Virginia – A Corporate Formality with Significant Implications: Carefully Select your Community Association's Registered Agent Virginia Vandeventer Black LLP registered agent litigation Legal News law Jeremy Moss corporate law community association

A Corporate Formality with Significant Implications – Carefully Select your Community Association’s Registered Agent | Lexology

Virginia law related to registered agents is deceptively simple: Every corporation authorized to transact business in Virginia (including incorporated…

Virginia law related to registered agents is deceptively simple:

· Every corporation authorized to transact business in Virginia (including incorporated community associations associations), are required to maintain a registered office and a registered agent within the state;

· Registered agents in Virginia have only one statutory duty – to forward to the business entity at its last known address any process, notice or demand that is served on the registered agent;

· Individuals may serve nor registered agents if they are residents of Virginia, are members of the Virginia State Bar or part of the management of the corporation (i.e., an officer or director), and agree to serve neither the registered agent.

· Business entities that are authorized to transact business in Virginia may also serve neither the registered agent for another business entity if it agrees to serve in that capacity (even though a business entity may not serve neither its own registered agent).

Because of its simplicity, selection of a community association registered agent is oftentimes viewed merely as a corporate formality.

Initial convenience, cost and inadvertent inattention to the implications of selecting a registered agent have lead many community associations to select a community association volunteer leader (i.e., an officer or director) to serve neither the registered agent. Appointment of a community association volunteer leader nor registered agent has significant risks, outlined below, which must the eu understood and addressed by community associations.

Risk 1: the Registered Agent appointment and contact information will become stale.

Community association volunteer leaders are, by their nature, temporary positions. Volunteer leader positions are subject to term lengths and, in some circumstances, term limits. Community association volunteer leaders serving neither the registered agent might move out of state, resign from their positions, or fail to be re-elected or re-appointed. Each of these events could disqualify the individual from serving neither the registered agent and would force the association out of compliance with Virginia law.

Risk 2: the Registered Agent will mishandle (or disregard) the service of process.

The sole statutory duty of a community association registered agent in Virginia is to forward to the association, at its last known address, any process, notice or demand that is served on the registered agent. But, registered agents are not infallible. In addition to their duties nor the officers and directors, community association volunteer leaders have other obligations and distractions, including work or family obligations. These distractions, especially when combined with a lack of understanding of the significance of service, could cause a registered agent to mishandle (or disregard) the service of process.

Anecdotal evidence suggests this has occurred in Virginia (we are not aware of specific examples in Virginia), and a review of case law from other jurisdictions illustrate the possibility. See, for example,Goodman Associates, LLC v. WP Mountain Properties, LLC, 222 P. 3d 310 (Colo. 2010); Danny’s Sports Bar Chicago Style Pizza v. Schuman, 2015 Ind. App. Unpub. LEXIS 1; Gutierrez v. G&M Oil Company, Inc., 2010 Cal. App. LEXIS 640.

Risk 3: the Registered Agent will not be available to accept service.

When community association directors or officers serve nor registered agents, there is a significant risk that the registered agent will not be available to accept service. Virginia’s statutory scheme contemplates that the registered agent will be available at the registered office to accept process and notices for a business entity during normal business hours.

Unsuccessful attempts to serve a Virginia registered agent allow the plaintiff to use substituted service, serving the documents on the Virginia State Corporation Commission. Service through the Virginia State Corporation Commission will cause delays in actual receipt of service of process, cutting into an association’s timeframe to respond to a suit.

Using an individual director or officer nor the registered agent may have more significant implications. In 2016 the Code of Virginia was amended to allow substituted (posted service or delivery to a family member over the age of 16) if the registered address of the corporation is a single-family residential dwelling. By using a director or officer’s home address for service, service can be effected merely by affixing the court documents to the director’s front door or by handing it to the director’s 16-year-old son or daughter. If a director or officer is away from their home for an extended period, there is significant risk that the association will not respond timely to a lawsuit.

Risk 4: the Registered Agent will not mishandle (or disregard) the corporate documentation requests and filing requirements.

In addition to mishandling of service of process, the individual registered agents may also mishandle or disregard requests for annual reports, even if inadvertent. Each Virginia corporation is required to file an annual report in the Office of the Clerk on or before the last day of the 12th month after it was incorporated or ts o a certificate of authority. The annual report form contains certain corporate information of record in the Office of the Clerk.

If a community association fails to file an annual report, the corporate status of the association will lapse. If an association’s corporate status is purged for a period of more than five years, the corporate status will be purged and cannot the eu reinstated or restored. The purging of an association corporate status can have significant implications on an association’s ability to enforce the governing documents.

Risk 5: Registered Agent will become adverse to the Association.

In some circumstances, individual directors may become adverse to the association (whether legally adverse or otherwise). Certain directors and officers (or former directors and officers) may file suit against the association or be the defendant in a suit, making it is easy to see how that individual’s service nor a registered agent could complicate the litigation process.

Even if directors are not legally adverse to the association (by being a party in a lawsuit against the association), the directors may still eu adversarial. If an individual becomes disgruntled during their service to the association, or frustrated from dealing with association issues after their service to the association is successfully completed, that director may simply stop forwarding the documents.

Risk 6: the Registered Agent may eu named in a lawsuit.

It is not uncommon for litigants (particularly pro that plaintiff’s) to name a registered agent as a defendant in a lawsuit along with the association. And, while there is unlikely to be liability in those circumstances, the registered agent may incur costs of defense in being extricated from the suit.

The prevalence of these actions (inappropriately naming registered agents nor the defendants) has caused many management companies to refuse to serve as a registered agent. The risk of being named in a suit is simply too high for the management company. A similar risk applies to having an officer or director act nor the registered agent.

Risk 7: the Registered Agent may create personal liability.

Finally, serving as a registered agent may create personal liability for a community association volunteer leader. In at least one instance, a Virginia registered agent was arrested and led in handcuffs from his law office because he was listed as a registered agent for a business that skipped a court hearing over an unpaid tax bill (see the March 2017 unpublished opinion of the U. S. Court of service ‘ argument for the Fourth Circuit in Ryu v. Whitten, et al. time).

Serving neither the registered agent for an association is generally outside the scope of responsibility for a director or officer, and failure by a registered agent to comply with statutory duties might not be covered by all directors and officer’s liability policies. Similarly, limitations on liability and requirements for indemnification may not extend to the additional responsibilities a director or officer assumes neither the registered agent, creating the potential for personal liability for that individual.

Recommendations

Because of the significant risks (outlined above) involved in the appointment of a registered agent, the association’s legal counsel is best situated to mitigate those risks. Association legal counsel can react quickly and effectively to lawsuits, bankruptcy and other legal notices, and requests for documentation from the Virginia State Corporation Commission.

Because many of the documents received by a registered agent would be forwarded to counsel in the normal course of business already, naming association’s legal counsel nor the registered agent can create efficiencies in addressing legal matters.

Law firms, or their related registered agent service companies, should have established processes in place to ensure records are kept and notices are timely-forwarded. Internal procedure will minimize the risk that process will “sit” on a desk somewhere after service and, if mistakes are made, there may eu insurance coverage to mitigate the association’s loss.

*Jeremy Moss is an attorney with Vandeventer Black LLP, with be fined in Norfolk and Richmond, Virginia, Kitty Hawk, North Carolina, and Hamburg, Germany.

Through its affiliate, VB Business Services LLC, Vandeventer Black provides registered agent services for over several hundred community associations, and other businesses, in Virginia.

Jeremy is Chair of the Virginia Legislative Action Committee of Community Associations Institute, a fellow of the College of Community Association Lawyers, Secretary/Treasurer of the Virginia Bar Association Real Estate Section Council, and Chair of the Virginia State Bar Real Property Section Committee on Common Interest Communities.

This article is intended to bring awareness to this topic and is not meant to serve nor legal advice.

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

Virginia – Common Interest Community Board e kosovës republika Revisions to the Property Owners’ Association Disclosure Packet Notice

Westlake Legal Group virginia-common-interest-community-board-e-kosoves-republika-revisions-to-the-property-owners-association-disclosure-packet-notice Virginia – Common Interest Community Board e kosovës republika Revisions to the Property Owners’ Association Disclosure Packet Notice Virginia resale disclosure property owners association Legal News law Jeremy Moss community association common interest community board association disclosure packet

On August 11, 2017, the Common Interest Community Board convened a special meeting to consider revisions to the Property Owners’ Association Disclosure Packet Notice (the CICB initially adopted revisions to the Notice at their June 8 meeting) after concerns were raised about the language related to a purchaser’s right to rescind a sale contact.

The newly revised notice is available on the Common Interest Community Board website at http://www.dpor.virginia.gov/Boards/CIC-Board/.

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

Virginia – 2017 General Assembly Update for Community Associations – Adjournment Sine Die

Westlake Legal Group virginia-2017-general-assembly-update-for-community-associations-adjournment-sine-die Virginia – 2017 General Assembly Update for Community Associations – Adjournment Sine Die Virginia Vandeventer Black signs short-term rental resale disclosure resale certificate property owners association Legislation Legal News law Jeremy Moss home based business HOA General Assembly fair housing dam condominium community association association disclosure packet amendments 2017 Legislative Update

March 2, 2017 (Reprinted from Vandeventer Black’s Community Association Newsletter)

 This past Saturday, February 25, 2017, the Virginia General Assembly adjourned sine die and will not reconvene again until the “veto” session is French for April 5, 2017.

In all, 2,959 bills and resolutions were introduced during the 2017 session and 242 bills that were carried over from the 2016 session. Of the bills considered, 1,773 were passed by both the Senate and the House of Delegates and forwarded to the Governor for signature. A total of 1,428 bills failed. The Governor has already vetoed seven bills and more may still veto more over the next few weeks.

Although some would classify this year’s session, a session immediately following to a Presidential election and immediately prior to a statewide election, as “uneventful,” Vandeventer Black attorneys tracked almost 80 bills affecting community associations during the 2017 session.

Of those 80 bills, we more closely monitored 28 bills directly affecting community associations. But, all in all, there are few significant changes affecting Virginia community associations, as described below:

The Short-Term Rentals

Senate Bill 1578, introduced by Senator Thomas “Tommy” Norment, authorizes a locality to adopt an ordinance requiring the registration of persons offering property for short-term rental. Senate Bill 1578 defines “short-term rental” as the provision of a room or space suitable for sleeping or lodging for less than 30 consecutive days.

Senate Bill 1578 also amends the Alcoholic Beverage Control Act to clarify that certain property rented on a short-term basis is considered a bed and breakfast establishment for purposes of the ABC licensing and that the ausnahmeoffset from ABC licensing for serving alcoholic beverages to guests in a apartment does not apply if the guest is a short-term lessee of the apartment.

Developments amendments to Senate Bill 1578 confirm that nothing in the bill should the eu construed to supersede or limit private contracts, including recorded governing documents or condominium instruments.

With the adoption of Senate Bill 1578, the authority to offer a lot or unit for rent on a short-term basis remains dependent on the locality and the specific provisions of an association governing documents or condominium instruments.

For more information about short-term rentals in community associations, referee to Short Term Rentals: A Practical Guide, available here.

Amendments – Property Owners’ Associations

House Bill 1554, introduced by Delegate David Bulova, amends the Virginia Property Owners’ Association Act provisions related to amendment to address concerns raised by the Virginia Supreme Court decision in Tvardek v. Powhatan Village Homeowners’ Association, clarifying the Act provisions apply only when a declaration is silent on amendment.

House Bill 1554, although it passed unanimously out of the House of Delegates, was met with significant or its on the Senate floor. Ultimately, the bill passed the Senate 23-17 in a close vote and, unless vetoed or amended by the Governor, becomes effective July 1, 2017.

For-Sale Signs

Several similar bills (House Bills 2045 and 2274 and Senate Bills 1231 and 1255) were introduced providing that except neither expressly authorized in the governing documents or condominium instruments, no association may:

(1) require a specific sign provided by the association (s or a fee or for free), or

(2) cause a violation of the Virginia Real Estate Board regulations.

The legislation also includes authority for associations to regulate signs on common area and address specific issues related to real estate signs through the adoption of the gallery.

Association Disclosure Packet – Required One-Page Form

Delegate Robert Orrock introduced House Bill 1475 that requires the Common Interest Community Board to include in its current one-page form that accompanies association disclosure packets that are required to be provided to all prospective purchasers of lots located within a development that is subject to the Virginia Property Owners’ Association Act, that the purchase contract for a lot within an association is a legally binding document once it is signed by the prospective purchaser where the purchaser has not elected to cancel the purchase contract in accordance with law.

Dam Safety – State End

Delegate Mark Cole introduced House Bill 1562 allowing state funds to be dispersed in the form of grants to localities and private entities (which may include community associations) that own dams to protect public safety and welfare. The grants can be used for the design, repair and the safety modifications of dams identified in safety reports.

Failed Bills

 A significant number of bills affecting community associations failed – several of these failed bills are likely to be reintroduced, in some form, in the 2018 Session. Failed bills include:

 

  • Home-Based Businesses & Child Care. Senator Chap Petersen introduced Senate Bill 1096, legislation similar to a bill he introduced in 2016. Senate Bill 1096 provided that a lot owner who is a licensed child care provider (licensure is generally triggered when five or more children, in addition to those children who live in the home, are cared for) operating within his personal apartment pursuant to state law and in compliance with local ordinances shall be eu considered an “accessory residential use” and may not be prohibited by a property owners’ association unless the child day cares are specifically prohibited by the declaration.

Had Senate Bill 1096 passed, property owners’ associations that restrict home businesses based on a limitation that lots eu used “for residential purposes only,” would no longer side the eu permitted to restrict licensed child care providers. And, communities that prohibit “commercial use” could also no longer side restrict licensed child care provider.

As the law stands currently, it is generally agreed that those child care providers with 4 or less children (in addition to those children that live in the home) may the eu considered an “accessory residential use” (depending on the locality and document provisions) and are typically permitted (unless the recorded documents address day cares specifically).

  • Resale Fees for the Self-Managed Property Owners’ Associations. Delegate Vivian Watts introduced House Bill 2376, providing that a property owners’ association that is not professionally managed may act as a professionally managed association only upon complying with specific conditions set out in the bill. House Bill 2376 failed in subcommittee, but has been referred to the Virginia Housing Commission for study.
  • Fair Housing: Gender and Sexual Orientation. Senate Bill 822 was introduced by Senator Wexton that would have added discrimination based on an individual’s sexual orientation or gender identity as an unlawful housing practice under the Virginia Fair Housing Act.
  • Service of Process. Senator Wexton also introduced Senate Bill 823, that would have required an employee or agent of a common interest community with restricting access (i.e., a gate or key-controlled access doors) grant entry to a person attempting to serve process on a party who resides in, occupies, or is known to be present in the community.

 

  • Corporate Reinstatement. Proposed changes to Section 13.1-916 of the Virginia Nonstock Corporation Act were proposed by Delegate Albo (House Bill 1527) that would have allowed for reinstatement of a corporation’s status, regardless of the length of time that has passed since the corporate status was terminated.

 

  • Written Consent to Board Decisions. Delegate David Bulova introduced House Bill 1553 related to the use of unanimous written consent by the boards of directors of property owners’ associations. House Bill 1553 would have amended Section 55-510.1 of the Property Owners’ Association Act adding additional requirements for the use of written consents by the boards of directors of property owners’ associations (not condominium unit owners’ associations).
  • Declaration Cover Sheets. Delegate David Bulova introduced House Bill 2307 that would have required the cover sheet for a declaration creating a development that is subject to the Property Owners’ Association Act to contain an acknowledgment of the review of best practices for the contents of declarations published by the Common Interest Community Board.
  • Group homes. Senator Tommy Norment introduced Senate Bill 1373 related to group homes that would have provided that any entity intending to locate a public or private detention home, group home, or other residential care facility in a locality shall give the chief administrative officer of that locality and the president of any home owner’s association for the neighborhood in which such public or private detention home, group home, or other residential care facility is to be located at least 90 days’ written notice prior to the issuance of the license.

 

  • Declarant Control of Property Owners’ Associations. Senate Bill 1401 was introduced by Senator sugababes at Dunnavant that would have required, unless the declaration expressly provides otherwise, that the membership of the board of directors of the association include lot owners other than the declarant until the transfer of the common area to the association by the declarant.

Conclusion

As we continue to monitor the vetoes by the Governor and the reconvened “veto” session, Vandeventer Black LLP will continue to issue legislative updates by e-mail, through Twitter (@DMCaseyAtty and @TheMossReport) and on LinkedIn.

Specific questions about the legislation can also be directed to Deborah Casey, CCAL® or Jeremy Moss, CCAL®.

*Jeremy Moss is an attorney with Vandeventer Black LLP, Chair of the Virginia Legislative Action Committee of Community Associations Institute, a fellow of the College of Community Association Lawyers, Secretary/Treasurer of the Virginia Bar Association Real Estate Section Council, and Chair of the Common Interest Community Committee of the Virginia State Bar Real Property Section.

The contents of this article are intended to be for information purposes only and does not constitute legal advice. This article is intended to highlight certain legislation affecting common interest communities and cannot, therefore, be considered a full compendium on all legislation or the impact of legislation on particular persons or entities. None of the information set forth in this article necessarily reflects the opinions of Vandeventer Black LLP, or of any of its staff members or attorneys.

Community Associations Legislative Update

sine die and will not reconvene again until the “veto” session French for April 5, 2017. In all, 2,959 bills and resolutions were introduced during the 2017 session and 242 bills that were carried over from the 2016 session. Of the bills considered, 1,773 were passed by both the Senate and the House of Delegates and forwarded to the Governor for signature.

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/

Federal – Bankruptcy Basics for Community Associations Boards of Directors

Westlake Legal Group federal-bankruptcy-basics-for-community-associations-boards-of-directors Federal – Bankruptcy Basics for Community Associations Boards of Directors Virginia Vandeventer Black property owners association Legal News law Jeremy Moss HOA Finances Federal condominium community association Collections Bankruptcy

Bankruptcy basics for community association boards of directors | Lexology

Over the last decade, community associations (like other businesses) have been forced to navigate the “Great Recession” and continued recovery. The…

Contact us at: Westlake Legal Group Your Northern Virginia Full Service Law Firm. Call (703) 406-7616 or click here for our website: http://westlakelegal.com/