ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Tuesday, January 21, 1997 TAG: 9701210061
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
COLUMN: What's On Your Mind?
SOURCE: RAY REED
Q: What happens to money that owners pay to condominium associations? When you're given no information about where your $100 per month goes and the place isn't kept up, you wonder about how it's being used. B.D., Roanoke
Q: I live in a development that has a homeowners association. In the past four years, the developers have assessed the homeowners a fee and never given a financial statement of the monies paid. I thought it was state law that an annual audit be made and copies given to homeowners. Who do I contact at the state level for an answer?
C.G., Salem
A: The answer to both questions is kind of scary. Basically, you're on your own in dealing with these associations.
If your talks with the board members involved don't get results, the official avenues are arbitration or a civil lawsuit.
No government agency oversees property-owner associations. Apparently, owners are presumed able to look out for themselves.
State law concerning property-owner associations protects developers and associations very well, but it doesn't do a whole lot for owners.
Read section 55-510 of the State Code and you'll be impressed by the number of reasons the associations can give for not divulging information to their members. (Condominiums come under section 55-79.74:1. The language is similar.)
Reasons for withholding information can include personnel matters, communications with lawyers, pending litigation, transactions in progress, pending enforcement of the association bylaws, and anything discussed by the board in executive session.
That list offers so many ways out of disclosure that an association's board can withhold lots of information.
We're not suggesting that withholding financial information is a common practice, but it's possible under the law. Northern Virginia has many associations and many people who complain.
Owners may believe that arbitration or a civil suit against the association aren't particularly appealing choices.
Filing a civil suit means the owner will bear the cost of suing a party that defends itself by using fees the owner paid.
Arbitration puts an owner across the table from a board that can control many things concerning the owner's property - such as upkeep of the access areas.
Owners who don't know where to turn can call the state Department of Professional and Occupational Regulation at (804)367-8510. The people there can give some information about the law, but they can't go to bat for anyone.
If a developer still is controlling an association, and hasn't turned it over to a governing board, this department can contact the developer.
The department's first suggestions will be that you read the State Code sections regarding condo associations or property-owner associations. They'll also tell you to read the bylaws of your association, which must be on file in your local courthouse.
They'll encourage you to try a course other than litigation, and help you contact trained mediators if you choose arbitration.
Got a question about something that might affect other people, too? Something you've come across and wondered about? Call us at 981-3118. Or, e-mail RayR@Roanoke.Infi.Net. Maybe we can find the answer.
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