I am a practicing Virginia attorney. I am adamantly opposed to the proposal to de-regulate the managers of Virginia common interest communities. The current laws and regulations are necessary and should be enforced, not diminished. 

My sense is that some CICs ignore the registration requirements with the CIC Board. I find it hard to believe that in 2018 only 822 Virginia CICs existed that should have been registered. Compare October 9, 2018 JLARC Report, Table 1-3. 

The number of CICs in Virginia will continue to grow. CICs assess millions of dollars of dues. When delegated to CIC managers, which is usually the case, the management and expenditure of these funds is a substantial undertaking which should be held to a high standard. 

The 2019 Virginia General Assembly quite appropriately directed the Commonwealth’s Common Interest Community Board to develop guidelines for the development of reserve studies for capital components. Old CICs will fail and cause Virginians catastrophic financial damage unless adequate reserves are maintained throughout the life of capital components.

The trend toward enhanced fiscal responsibility and educational standards should not be short-circuited by de-regulating what may be the only professional element in a CIC. 

The 2018 JLARC Report (page 16) suggested that a CIC manager could not defraud a CIC because the associations already are protected against this risk because they are required to be bonded or insured against theft losses by managers. This assumes that this rule is being adhered to in the first place. If there is a significant number of unregistered CICs in Virginia, I submit that the professional managers are an important backstop in the regulatory scheme. Or they should be, if the law is being enforced.