Ten Legal Pitfalls for Community Association Boards and Managers in Virginia


September 2024

Community association boards and managers in Virginia play a vital role in maintaining the well-being of their communities. However, this role comes with numerous legal responsibilities and potential pitfalls. This article explores ten legal challenges that community association boards and managers may encounter in Virginia.

Failure to Follow Governing Documents

One of the most common legal pitfalls for community association boards and managers is failing to adhere to the association's governing documents. These documents, including the Declaration of Covenants, Conditions, and Restrictions ("CC&Rs"), establish the rules and regulations for the community, and deviating from these documents may result in legal disputes.

Discrimination Claims

Community associations must avoid discriminatory practices when enforcing rules. Fair housing laws prohibit discrimination based on factors like race, gender, religion, and disability. Community association boards and managers must be knowledgeable about these laws to avoid costly legal battles.

Inadequate Record-Keeping

Proper record-keeping is essential for community associations. Failure to maintain accurate records can lead to disputes over dues, maintenance issues, or other matters. Inadequate records can hinder the association's ability to resolve disputes efficiently.

Mismanagement of Funds

Community associations must manage their finances meticulously. Misappropriation of funds or lack of transparency can lead to allegations of financial mismanagement and legal actions against the association.

Violation of State Laws

Virginia has specific laws governing community associations, and failure to comply with them can lead to legal problems. For instance, community associations must follow state laws related to meetings, elections, and disclosure requirements.

Failure to Maintain Common Areas

Community association boards and managers must ensure that common areas are adequately maintained. Neglecting this responsibility can result in lawsuits from homeowners who claim that their property values are declining due to the lack of upkeep.

Inconsistent Enforcement of Rules

Inconsistent enforcement of community association rules can lead to accusations of favoritism or discrimination. It is essential for community association boards and managers to apply rules uniformly to avoid legal disputes.

Unlawful Assessment Collections

Community associations depend on homeowners' assessments to cover operating expenses. Collecting assessments improperly or failing to follow proper legal procedures when pursuing delinquent payments can result in legal challenges.

Navigating Architectural Control

Community associations often have authority over the design and appearance of properties within the community. Managing this aspect while respecting homeowners' property rights can be legally complex.

Handling Disputes and Litigation

Community association boards and managers must be well-versed in conflict resolution and mediation. Disputes can arise between homeowners and the association, and knowing how to navigate these issues legally is crucial.

Conclusion

Overseeing a community association in Virginia presents unique challenges, particularly when navigating the intricate legal landscape of community governance.  Avoiding these ten legal pitfalls is essential for community association boards and managers to ensure the smooth operation of the association and maintain a harmonious community. Staying informed about state laws, being consistent in enforcement, and promoting open communication with homeowners are key steps to mitigate these legal challenges.

Contact the author or a member of GRSM's Community Association Law practice group with questions or for assistance.

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