Action | Initial Common Interest Community Manager Regulations |
Stage | Emergency/NOIRA |
Comment Period | Ended on 12/10/2008 |
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8 comments
1. Is it necessary to establish Board Resolutions now for Grievance Procedures or should our Association wait until the regulations have been promulgated?
2. Certification: If I am a non-supervisor Portfolio Association Manager (HOA's & Condos), am I required to obtain some sort of certification personally as a manager, or does this requirment fall on my employer.
Thank you...
C Z
This type of regulation looks like the same think that is going on with Locksmiths. Seems to be like a bad case of the we can do so you can to. Virginia Government is jumping leaps and bounds to bring more regulations to the small business community at a time when they need less Government and a little more discussion on the real problems. To much Government is costing us money and you can't keep taxing Small Business and the consumer to pay for your poor mistakes.
18 VAC 48-50-10. Definitions
I see that CAI already addressed this and it was an issue I was planning to comment on. I just want to lend my support to that. Currently it's an impossibility to get a bond that will go 2 1/2 years before expiring.
My other issue concerning the fidelity bond --- my fidelity bond is with State Farm. I got it in September. There is no wording in the bond that specifies that the bond includes "coverage for losses of clients..." Upon questioning my insurance agent, I was assured, albeit verbally, that the State Farm bond department told him that after July all fidelity bonds for HOA management companies comply with Virginia's requirement that the bond cover their clients also.
Is verbal assurance going to be acceptable to the CICB?
If a company does only financial management, are there any plans to have a certificate aimed at only those areas of knowledge required for financial management?
Disclosure of these fees is required. I do disclose them in the Disclosure Packet. However, I assume all homeowners need to be notified. If the HOA does not have a website and the financial management company does not have a website, is a mailing required to all homeowners? Is the newsletter sufficient notification?
Is this the annual assessment only, or is it supposed to include late fees assessed, covenent violation charges assessed, etc?
The VPOAA states that the amount insured should equal the reserves plus 3 months of assessments, to cover both the HOA board AND the manager. If the manager does not have access to the reserves, but just to the operating account, does the coverage for the manager have to be the same as for the HOA board?
The way it is worded now, the implication is Yes. One large insurance company's lawyers, I've been told, has indicated that that is the only interpretation they can make from the wording.
So if the charge is $3/$1000 for the additional named manager, the following would happen in the hypothetical situation of an HOA that has $500,000 in reserves and $75,000 for 3 months of assessments. The charge to the association for the named manager would be an additional $1725. When in actuality the manager has access to only $75,000, and not even that after expenses bring down the amount in the checking account.