Residents of Captains Cove describe prolonged declarant control; developer and attorney describe financial and infrastructure constraints

Residents of Captains Cove told the work group the community has been subject to extended declarant control and that the declarant’s actions have led to financial strain, infrastructure shortfalls and reduced homeowner control.

Why it matters: The meeting focused on the legal and policy question of how long a developer (“declarant”) may exercise special rights and board control in a property owners’ association, and whether Virginia should adopt statutory step‑down periods or other protections. Speakers said the issue has statewide relevance where older subdivisions were platted under earlier rules and where modern expectations for developer responsibilities differ from practice decades ago.

Residents’ testimony: Theresa Birkhead, speaking for Captains Cove residents, said the community “is advertised as a resort community. But it's fallen short of its promises.” She told the work group that a succession of declarants and related entities have retained control of common areas and that the association has paid for infrastructure work she said the declarant should have completed. Birkhead described litigation, a 2012 settlement that returned common areas to the declarant, and a loan the association agreed to for $3 million with interest and a balloon payment, which she said burdened the association’s budget. Multiple other residents testified during public comment that association elections are effectively controlled by the declarant and that lack of transparency and rising dues have left many homeowners, including retirees, struggling.

Declarant and counsel response: Mark Baumgartner, legal counsel for CCG Note LLC, which owns undeveloped lots in Captains Cove, described a different narrative focused on the subdivision’s unusual size and early platting. Baumgartner said many original lots never developed, the project had only a few hundred houses before the 2008 real‑estate downturn, and the private wastewater treatment utility required investment and a viable customer base. He said the declarant and association pursued lot foreclosures and strategic lot swaps to increase dues‑paying households, and that infrastructure improvements and sales of buildable waterfront lots have increased the association’s revenue and paved 26 miles of roads.

State law and policy questions: Commission staff and legal presenters explained that Virginia lacks a uniform, statutory tiered step‑down for declarant control that some other states use. Pia Trijiani, who represents common‑interest community associations, cautioned that any statute must account for differences between POAs and condominiums. Director Pollan noted Delaware and Pennsylvania use tiered models; residents asked the work group to consider retroactive relief for older subdivisions they said were left with developer control after decades.

Work group response and next steps: Chair Delegate David Bulova said the topic raises multiple issues—court remedies, local oversight, and state statutory design—and proposed a small working group to review options. Bulova suggested inviting the Virginia Municipal League (VML), the Community Associations Institute, the Home Builders Association of Virginia and other stakeholders. Delegate Carrie Koiner and others volunteered to participate. Work group members did not adopt legislation at the meeting; they directed staff and the suggested small group to report back with recommendations.

Ending: The work group will examine whether a statutory model (for example, a tiered step‑down tied to sales or elapsed time) or other interventions would better protect homeowners in older subdivisions while preserving an incentive for developers to complete complex projects.