A clause has been added to the proposed legislative change that states that disclosure would only be required when a majority of the non-declarant board members own “improved lots” in the Association. This clause makes it 100% possible for any declarant to avoid ever needing to make the disclosures. A declarant who wishes to avoid disclosure can identify a person who does not even own property in the Association, make an unimproved lot available to such person at low (or no?) cost and appoint or elect them to the Board. In the case of Captain’s Cove, this has already happened. I cannot imagine what the purpose of adding this new clause would be, except to make it completely irrelevant, and to benefit developers who want to obscure their control of the association. I ask that this new clause be completely removed.
But much more needs to be done to protect the citizens of Virginia. When a developer has total control of an association, and the people who pay dues and have their homes within it have no power, corruption can easily follow. There are other things that can- must- be done to protect people from possible corruption. I recommend the following be added to this legislation:
If the declarant has any unexpired right to control the conduct of association business, through the appointment or election of a majority of the members of the board of directors, the Association shall create a 3-member Owner Governance Panel. This Panel shall be elected solely by the vote of non-Declarant members. This Panel will serve as non-voting Board members and as such will have access to any and all information available to the Board of Directors and participate in all Board meetings. Panel members will be subject to all confidentiality requirements expected of Board members.
The Owner Governance Panel will also have the right to appoint one Panel member to work with the Board, staff and audit firm throughout the annual audit process.
All owners of property in the Association shall have the right to vote in any election or referendum. Such right will not be lost for any reason as long as the member continues to own property in the Association.
The Board shall report to the members the total number of declarant lots approved to be used for voting purposes, and a list identifying these lots.
Developers may claim no more lots as “Developer lots” as he owned at the outset of his tenure as developer. Any lots purchased, traded for, or otherwise obtained subsequent to the date he began as “developer” cannot be used for voting purposes and will not be exempt from the owing of dues.
While these changes would greatly assist Virginia property owners who are otherwise at the mercy of potentially unscrupulous developers, ultimately, there must be a limit to how long developers can claim the rights of a developer. Comperhensive, nationally accepted fair voting procedures, consistent with the recommendations of the bipartisan Uniform Common Interest Communities Act must be required in Virginia.
By making these changes, HB 621 would actually protect Virginia citizens from possible, and actual, corruption. As it is now written, HB 621 only encourages corruption.
A clause has been added to the proposed legislative change that states that disclosure would only be required when a majority of the non-declarant board members own “improved lots” in the Association. This clause makes it 100% possible for any declarant to avoid ever needing to make the disclosures. A declarant who wishes to avoid disclosure can identify a person who does not even own property in the Association, make an unimproved lot available to such person at low (or no?) cost and appoint or elect them to the Board. In the case of Captain’s Cove, this has already happened. I cannot imagine what the purpose of adding this new clause would be, except to make it completely irrelevant, and to benefit developers who want to obscure their control of the association. I ask that this new clause be completely removed. But much more needs to be done to protect the citizens of Virginia. When a developer has total control of an association, and the people who pay dues and have their homes within it have no power, corruption can easily follow. There are other things that can- must- be done to protect people from possible corruption. I recommend the following be added to this legislation: If the declarant has any unexpired right to control the conduct of association business, through the appointment or election of a majority of the members of the board of directors, the Association shall create a 3-member Owner Governance Panel. This Panel shall be elected solely by the vote of non-Declarant members. This Panel will serve as non-voting Board members and as such will have access to any and all information available to the Board of Directors and participate in all Board meetings. Panel members will be subject to all confidentiality requirements expected of Board members. The Owner Governance Panel will also have the right to appoint one Panel member to work with the Board, staff and audit firm throughout the annual audit process. All owners of property in the Association shall have the right to vote in any election or referendum. Such right will not be lost for any reason as long as the member continues to own property in the Association. The Board shall report to the members the total number of declarant lots approved to be used for voting purposes, and a list identifying these lots. Developers may claim no more lots as “Developer lots” as he owned at the outset of his tenure as developer. Any lots purchased, traded for, or otherwise obtained subsequent to the date he began as “developer” cannot be used for voting purposes and will not be exempt from the owing of dues. While these changes would greatly assist Virginia property owners who are otherwise at the mercy of potentially unscrupulous developers, ultimately, there must be a limit to how long developers can claim the rights of a developer. Comperhensive, nationally accepted fair voting procedures, consistent with the recommendations of the bipartisan Uniform Common Interest Communities Act must be required in Virginia. By making these changes, HB 621 would actually protect Virginia citizens from possible, and actual, corruption. As it is now written, HB 621 only encourages corruption.