Client Alert: 2026 Virginia Legislative Updates for Common Interest Communities
Date: June 22, 2026
SB 246 / HB 439 – Virginia Nonstock Corporation Act
SB 246 and HB 439 comprehensively overhaul the Virginia Nonstock Corporation Act, Virginia Code § 13.1-801, et seq. (“Nonstock Corporation Act”), the corporate statute governing most incorporated community associations in the Commonwealth. One key change that is relevant to community associations is that the Act now expressly provides that where a community association’s declaration or condominium instruments conflict with its articles of incorporation or bylaws on matters of dues, assessments, fees, or membership, the declaration or condominium instruments control, affording greater governance flexibility. The Nonstock Corporation Act also authorizes members to bring derivative proceedings on behalf of their corporation. Also, Virginia Courts are now empowered to remove corporate directors in certain circumstances involving fraud, gross abuse of position, or intentional harm to the corporation.Section 13.1-814.1 of the Nonstock Corporation Act continues to define “community association” as a corporation incorporated under the Nonstock Corporation Act that owns or has under its care, custody, or control real estate subject to a recorded declaration of covenants, obligating a person, by virtue of ownership of specific real estate, to be a member of the corporation. This law will become effective on January 1, 2027.
HB 444 – Uniform Consumer Debt Default Judgments Act
House Bill 444 establishes the Uniform Consumer Debt Default Judgments Act (“Consumer Debt Act”), imposing new procedural requirements before a default judgment may be entered in a consumer debt collection action. House Bill 444 defines “consumer debt” broadly as an obligation arising from a transaction primarily for personal, family, or household purposes, a definition that captures community association and assessments, as assessments are a personal obligation for individual members. The Consumer Debt Act will require detailed complaint disclosures (such as the creditor name, account details, last payment date, outstanding balance, and chain of ownership) and mandates a separate consumer notice warning of default judgment consequences. A waiver of these requirements by the consumer is void. This Bill will have real-world impacts on community associations, including increased administrative burdens, delayed collection processes, and added legal costs for homeowners. For example, House Bill 444 will require a significant change to how community associations file Warrant in Debts to collect unpaid assessments and the notices required to be sent prior to a default judgment. The enactment has been delayed to July 1, 2027.House Bill 833 – Land Subdivision and Development, Electric Vehicle Charging Stations
House Bill 833 allows a locality to include in its subdivision ordinance a requirement for electric vehicle (“EV”) supply equipment, EV-ready charging spaces, and EV-capable parking spaces to ensure that commercial, industrial, or multifamily residential developments have sufficient infrastructure for future EV charging, such as prewiring. Overall, the Bill requires localities to seek to minimize electrical distribution infrastructure costs. The Bill is still in its early stages, as it directs the Department of Energy to evaluate subdivision or site plan approvals to determine what infrastructure may be necessary, what may overburden the local electrical distribution system, and the costs of operating such EV stations within a certain development. The Department of Energy is directed to produce this report to the State Corporation Commission no later than November 15, 2026. Then, House Bill 833 is scheduled to go into effect on July 1, 2027. Once in effect, this Bill will impact developers interested in building commercial or residential developments in Virginia, as such developers will need to plan for how a local ordinance may change the locale or number of EV charging stations depending on the local electrical grid. In the future, this will also impact community associations that need to comply with local ordinances in connection with the EV stations in the development.Fannie Mae and Freddie Mac Updates
Beyond the legislative arena, one of the most significant developments for community associations in 2026 has come from Fannie Mae and Freddie Mac, which have announced significant changes to project standards and property insurance requirements. These changes may have wide-ranging implications for association operations, budgeting, and homeowner mortgage financing. Our separate client alert addresses these changes in detail, at this link: Fannie Mae Announces Significant Changes to Project Standards and Property Insurance Requirements for Community Associations.Whiteford Taylor & Preston will continue to monitor legislative and regulatory developments affecting common interest communities. Please contact our Community Associations Practice Group with any questions about how these changes may affect your operations.
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.