Housing Commission endorses disclosure for developer control and requires mortgage-assumption notice

The Virginia Housing Commission at its final interim meeting endorsed two pieces of legislation intended to increase consumer notice in housing transactions.

The commission voted to endorse a work-group bill that would require disclosure to prospective buyers when a developer retains unexpired ‘‘declarant control’’ over an association’s governance. The work-group presenter said the measure is deliberately forward‑looking because the Constitution prevents retroactive changes to private declaration language; the proposal would not alter existing contracts but would add a buyer‑disclosure requirement so purchasers are aware of any ongoing developer control.

The presenter said staff reviewed older subdivision ordinances and could not identify other developments with the same lingering‑control problem, and the work group recommended the disclosure requirement unanimously. The motion was made by the work‑group representative and seconded by the chair; the endorsement passed on a voice vote.

The commission also endorsed a bill proposed by Senator Sturdivant that would require loan servicers to include a notice on the annual aggregate escrow analysis sent to homeowners with conventional loans, informing them that their mortgage may be assumable under law and advising they check their rights. The work group said the measure aims to increase public awareness — for example in cases of death or divorce where assumption can provide a lower interest rate and reduced closing costs — and the commission approved the endorsement by voice vote after a second from the chair.

Two other items on the agenda received no endorsement. Commission members took no action on legislation concerning contractual limits on home‑inspector liability; presenters noted the Department of Professional and Occupational Regulation (DPOR) previously reviewed the issue and recommended against statutory change. A separate proposal to require localities to place prominent resource‑protection warnings on annual assessments likewise drew no consensus from the work group and was not endorsed.

The commission’s endorsements are advisory recommendations to patrons and do not become law; patrons must carry and file bills in the General Assembly for committee consideration. The commission said patrons may still introduce the two measures that were not endorsed.