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Virginia housing work group backs disclosure on developer 'declarant control'
Summary
A Virginia Housing Commission work group agreed without objection to recommend draft disclosure language requiring sellers of new associations to notify buyers about a developer's reserved right to declare control and appoint association boards; the measure is disclosure-only and does not change contract obligations, staff said.
The Neighborhood Transitions, Local Land Use and Community Living work group of the Virginia Housing Commission agreed to forward draft disclosure language to the full commission that would require clearer notice to purchasers when a developer has reserved rights to declare control of a homeowners association.
Jessica (staff member) told members the small group reached consensus that a disclosure modeled in part on condominium statutes would inform buyers that a declarant can continue to control association operations and appoint board members. She noted the draft is intended as a disclosure measure, not a change to existing declaration provisions, and highlighted a constitutional limit: the General Assembly cannot retroactively alter the obligation of contracts.
Members discussed the role of outdated local subdivision ordinances in enabling problems such as the Captain’s Cove case and recommended keeping a broader review of subdivision ordinances on next year’s agenda. Jerry Wright and other members described only minor clarifying edits were needed to ensure resale certificates and buyer-facing materials do not expand the disclosure into a broader rewrite of declarant rights.
Chair David Bolivar asked whether members were comfortable recommending the draft to the full commission. Working by consensus, the group agreed to an affirmative recommendation without formal roll-call votes.
The work group characterized the proposal as a transparency measure: it would require that resale or closing materials include clear, written notice that developers may retain certain reserved powers, rather than altering the legal scope of those powers. The chair said the recommendation would be presented to the commission at its December meeting.
