Client Alert: 2025 Virginia Legislative Updates for Common Interest Communities
Date: May 27, 2025
The following bills amend the Property Owners’ Association Act (Virginia Code § 55.1-1801, et seq., as amended (1950)), the Virginia Condominium Act (Virginia Code § 55.1-1900, et seq., as amended (1950)), and other statutes that may affect common interest communities. Please feel free to contact us if you have any questions regarding any of the following legislative changes.
SB 1291: General District Courts; Increases Jurisdictional Limits
Senate Bill 1291 amends Virginia Code § 16.1-77 to double the civil jurisdictional ceiling of the Commonwealth’s general district courts from $25,000 to $50,000. This enables general district courts to hear civil cases and matters up to $50,000 while retaining exclusive original jurisdiction for claims not exceeding $4,500, and concurrent jurisdiction with the circuit courts for claims above that amount.
For Virginia community association clients, this change is significant as associations can now pursue higher-value assessment collections, covenant-enforcement damages, vendor-contract disputes, or other monetary claims in the faster, less formal, and markedly less expensive general district court forum. Clients can avoid circuit-court discovery burdens, extended timelines, and higher filing fees while still benefiting from the statutory provisions that expressly authorize general district courts to adjudicate disputes under §§ 55.1-1819 and 55.1-1959. The increased threshold also reduces the strategic leverage of delinquent owners who previously could force associations into the slower-moving circuit court simply by asserting counterclaims above $25,000. In short, SB 1291 affords community associations a more efficient, cost-effective, and flexible litigation avenue for mid-sized disputes, thereby strengthening their ability to safeguard common interest communities’ financial and operational stability.
SB 761: Civil Actions Brought by Warrant; Extends Date Range for Court Appearance
Senate Bill 761 amends Virginia Code §§ 16.1-79 and 16.1-81 to lengthen the period between service of a civil warrant or motion for judgment and the first return date in Virginia’s general district courts from not more than sixty (60) days to not more than ninety (90) days. Plaintiffs must likewise schedule a presentation of motions for judgment within the new ninety-day time period.
Virginia community association clients will experience the change primarily in assessment-collection and covenant-enforcement matters. The extended window offers additional flexibility when coordinating the service of owners (particularly out-of-state owners), preparing documentation for the first return, and engaging counsel before the initial hearing. Associations that employ demand-letter “cure” periods may align those periods with the longer return date, potentially motivating delinquent owners to resolve disputes before incurring increased court costs. Conversely, the expanded timeframe may delay the point at which a default judgment can be entered due to the increased timeframe for service. Clients should work with counsel to recalibrate internal collection calendars, ensuring that the benefit of strategic flexibility afforded by the increased time period does not inadvertently slow the overall enforcement and collection process.
HB 2750: Common Interest Communities; Termination of Certain Management Contracts
House Bill 2750 amends Virginia Code §§ 54.1-2353 and 54.1-2354.5, § 55.1-1837 of the Virginia Property Owners’ Association Act, and § 55.1-1940.1 of the Virginia Condominium Act, to strengthen an association’s ability to transition smoothly when it replaces its professional management company. The bill imposes an affirmative duty on the outgoing management to (i) transfer all association funds; and (ii) close all bank accounts that it maintained on the association’s behalf within a “reasonable time” and “without additional costs.” The bill further clarifies that any management contract containing an automatic renewal provision may be terminated “without cause and without penalty” upon not less than sixty (60) days’ written notice to either party.
For Virginia community association clients, the implications are significant. Boards frequently hesitate to change management companies for fear of protracted turnover or hidden exit fees. House Bill 2750 eliminates those friction points by (a) guaranteeing cost-free delivery of funds and records and (b) invalidating contractual early-termination penalties, provided the requisite statutory notice is given. Associations should nonetheless confirm that their existing agreements incorporate the new statutory language or, at minimum, do not purport to override it. Furthermore, transition checklists should be updated to specify the format and timing for the hand-off of digital ledgers, bank statements, reserve studies, and archival records so that the “reasonable time” standard is satisfied. Finally, because management companies can also invoke the no-cause termination right, boards should maintain a succession plan and an up-to-date request-for-proposal template to avoid operational gaps if a management company unexpectedly issues a termination notice.
HB 2195: Virginia Consumer Protection Act; Mold Remediation and Inspections Report
House Bill 2195 amends § 59.1-200 of the Virginia Consumer Protection Act (“VCPA”) to include residential mold remediation and related inspections as specifically regulated “consumer transactions.” Effective immediately under an emergency clause, the bill requires any individual or entity performing mold remediation in a residential dwelling to hold certification from a nationally or internationally recognized credentialing body for mold remediation. Further, such individual or entity must now comply with standards set by the Environmental Protection Agency’s (“EPA”) publication on Mold Remediation in Schools and Commercial Buildings, the ANSI/IICRC S520 Standard for Professional Mold Remediation, and any other equivalent ANSI-accredited mold remediation standard, when conducting or offering to conduct mold remediation in the Commonwealth.
For Virginia community association clients, boards and management companies that arrange and contract for mold abatement in common elements or within dwelling units must ensure that only certified remediators are engaged. Additionally, prompt engagement of properly credentialed professionals now functions not merely as a best practice for Associations, but as a statutory obligation once mold is suspected. To ensure prompt engagement, Associations may wish to revisit their maintenance protocols for water-intrusion events.
HB 1792: Local Taxes; Nonjudicial Sale of Tax Delinquent Real Properties, Threshold for Nonjudicial Sale
House Bill 1792 amends Virginia Code § 58.1-3975 to expand the categories of tax-delinquent real property that a local treasurer may divest through a non-judicial public auction, raising the base assessment ceiling for automatic eligibility from $10,000 to $15,000 and adjusting the successive value bands from a former $10,001–$25,000 range to $15,001–$30,000, and from a former $25,001–$40,000 band to $30,001–$40,000 for unimproved parcels of 0.5 acre or less situated in urban redevelopment or revitalization zones. The revised statute also retains the requirement that taxes be at least three (3) years in arrears and preserves the existing notice, redemption, and excess-proceeds framework.
For Virginia community associations, these higher thresholds materially enlarge the pool of lots, often small, vacant, blighted, or derelict, capable of being sold without court intervention, meaning associations may see delinquent properties within their schemes change hands more quickly and without the procedural safeguards of a judicial sale. While earlier turnover may curb continuing deterioration and bring in new, dues-paying owners, it also compresses the window in which an association can record liens, pursue collection, or influence the sale terms, and increases the likelihood that unpaid assessments will be extinguished unless the board acts promptly. Accordingly, boards should strengthen their monitoring of local tax-sale notices, ensure statutory assessment liens are timely perfected, and be prepared to assert claims for surplus proceeds or negotiate repayment agreements with treasurers to protect the association’s financial interests while leveraging the opportunity to rejuvenate neglected parcels within their communities.
HB 1704 & SB 808: Resale Disclosure Act; Resale Certificate, Responsibility for Payment of Insurance Deductible
House Bill 1704 and Senate Bill 808 amend Virginia Code § 55.1-2310 to require the resale certificate form, which is developed by the Common Interest Community Board, to clarify that owners may find themselves liable for the master policy deductible for any claim brought against the Association’s policy. Presently, the statute requires resale certificates to inform prospective purchasers of the nature of insurance coverage the Association secures for their benefit, as well as identify any insurance the purchaser was required to secure. This legislation now requires the resale certificate to include a statement indicating that the Association governing documents may make an owner responsible for payment of all or part of the deductible when the Association makes a claim against any insurance the Association provides for the benefit of the owners. The legislation is designed to inform potential purchasers of all potential liability they may face when purchasing their condominium Unit.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.