Virginia Property Owners’ Association Act: Everything you need to know

What is the Virginia Property Owners’ Association Act?

The Virginia Property Owners’ Association Act (POAA) governs community associations in Virginia. Found in Chapter 18 of Title 55.1 of the Code of Virginia, it outlines how associations are created, governed, and managed. The POAA applies to most common-interest communities formed after January 1, 1959, and subdivisions organized under the Subdivided Land Sales Act. It clarifies the roles of both the board and individual property owners, and it standardizes procedures for meetings, budgets, disclosures, and rule enforcement.

Understanding the VA Property Owners’ Association Act is essential for boards, homeowners, and community association managers. It helps guide day-to-day operations and long-term planning, while helping protect the interests of both the community and its residents.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Governance and board responsibilities under the POAA

The POAA provides clear rules for how associations are structured and governed. This includes requirements for bylaws, articles of incorporation, and recorded declarations of covenants. The board of directors is responsible for running the association in accordance with these governing documents and Virginia HOA laws. The POAA grants the board authority to adopt rules, collect assessments, maintain common areas, and enforce community standards. However, that authority must be balanced with homeowner rights.

Board meetings must follow notice requirements, be open to members (except in limited executive sessions), and keep written minutes. The board is also responsible for disclosing conflicts of interest and following due process before imposing fines or suspending privileges. In practice, this means creating a clear, documented process for hearings and appeals. Committees, officers, and management companies may support the board, but final decision-making power remains with the elected directors. Effective governance requires regular training, timely communication with members, and strict adherence to legal and ethical standards. Proactive planning and professional support can help boards meet these responsibilities with confidence. Understanding these roles and limitations is key to minimizing liability and supporting consistent leadership.
 

Homeowner rights and responsibilities

The VA Property Owners’ Association Act provides homeowners with several important rights. These include the right to:

• Vote in association elections and major decisions
   
• Access association records with reasonable notice
   
• Receive certain financial disclosures and meeting notices
   
• Contest rule violations or penalties through a hearing
   
• Record certain open board meetings, subject to association rules

Homeowners also have obligations, such as paying assessments on time and complying with the association's rules and architectural guidelines. Failure to meet these responsibilities can result in enforcement actions under the terms outlined in the POAA.
 

Financial management and budget requirements

The VA Property Owners’ Association Act sets specific expectations around financial management and planning. Each year, the board must adopt a budget and make a copy available to all members. The budget should include estimates for operating costs and reserve contributions. Associations must maintain accurate financial records and make them available to members upon request. These records typically include the current budget, balance sheet, income statement, reserve studies, and audit or review reports (if applicable).

Special assessments must follow procedures outlined in the governing documents and, in some cases, require a vote of the membership. Associations are also expected to maintain a reserve fund to cover major repairs and replacements. Reserve studies are generally required at least once every five years and must be reviewed annually.

Assessment collection practices must comply with notice and due process provisions. Late fees, interest, and attorneys’ fees may be charged, but they must be consistent with the POAA and the community's governing documents. Boards should work with legal counsel and management professionals when developing a collection policy.
 

Enforcement, disputes, and due process

The POAA allows associations to adopt rules and enforce them through reasonable fines, suspension of privileges, or legal action. However, enforcement must follow procedural safeguards, including:

• Notice of the alleged violation
   
• An opportunity for the homeowner to request a hearing
   
• A written decision following the hearing

In Virginia, an HOA can fine you up to $50 for a one-time violation or $10 per day for ongoing issues (for up to 90 days), but only after giving proper written notice and a chance for a hearing. Fines cannot be arbitrary or excessive and must be consistent with the association's governing documents. Some violations may also be addressed through civil litigation or by filing a lien for unpaid assessments. To minimize conflict, many associations establish written enforcement policies that outline timelines, hearing procedures, and appeal options. Boards are also encouraged to consider alternatives like mediation or professional dispute resolution when appropriate.
 

Disclosures and resale certificate requirements

As of July 1, 2023, Virginia replaced the POAA’s rules on disclosure packets with the stand-alone Resale Disclosure Act. Disclosure packets are now called resale certificates and must be delivered within 14 days of a seller’s written request.

VA resale certificates typically include:

• Governing documents and rules
   
• Budget and financial statements
   
• Notices of unpaid assessments or pending litigation
   
• Community association insurance information
   
• Architectural guidelines and any current violations

Failure to provide an accurate or timely certificate can delay closing and expose the seller or association to liability. Boards should keep documents current and have a clear fulfillment process.
 

How a property management company can help

Complying with the VA Property Owners’ Association Act requires time, attention to detail, and local expertise. That’s where a professional management company can make a difference. At FirstService Residential, we help boards stay informed and organized. From preparing budgets and handling disclosures to coordinating meetings and guiding enforcement, our team supports every aspect of POAA compliance. We also provide access to trusted legal resources and risk management programs to help protect your association.

Whether your board is navigating rule enforcement, updating policies, or just trying to stay on top of changing laws, you don’t have to go it alone. Contact us today to learn how our management services can help your association simplify compliance with the VA Property Owners’ Association Act.