Source: http://register.dls.virginia.gov/details.aspx?id=886
Timestamp: 2019-05-23 13:18:05
Document Index: 717308548

Matched Legal Cases: ['§ 54', '§ 2', '§ 55', '§ 55', '§ 55', '§ 55', '§ 55', '§ 55']

Vol. 27 Iss. 10 (Proposed Regulation) 18VAC48-70, Common Interest Community Ombudsman Regulations January 17, 2011
Title of Regulation: 18VAC48-70. Common Interest Community Ombudsman Regulations (adding 18VAC48-70-10 through 18VAC48-70-130).
Statutory Authority: §§ 54.1-201 and 54.1-530 of the Code of Virginia.
March 3, 2011 – 10 a.m. - Department of Professional and Occupational Recreation, 9960 Mayland Drive, 2nd Floor, Board Room 1, Richmond, VA
Basis: Section 55-530 I states that "[t]he Board may prescribe regulations which shall be adopted, amended or repealed in accordance with the Administrative Process Act (§ 2.2-4000 et seq.) to accomplish the purpose of this chapter." In addition, § 55-530 E states that "[t]he Board shall establish by regulation a requirement that each association shall establish reasonable procedures for the resolution of written complaints from the members of the association and other citizens. . . "
Section 54.1-201 states in part that regulatory boards shall promulgate regulations in accordance with the Administrative Process Act necessary to assure continued competence, to prevent deceptive or misleading practices by practitioners, and to effectively administer the regulatory system administered by the regulatory board.
The regulation is mandatory to implement Chapters 851 and 871 of the 2008 Acts of Assembly.
Purpose: The new regulation establishes the requirement that each association must establish reasonable procedures for (i) the resolution of written complaints from the members of the association and other citizens, (ii) recordkeeping related to complaints filed, (iii) forms and procedures to be provided, (iv) transmittal of information to members regarding the Office of the Common Interest Community Ombudsman, and (v) filing a notice of final adverse decision with the board. The new regulation is necessary to implement Chapters 851 and 871 of the 2008 Acts of Assembly. The goal of the regulation is establish the requirements for associations to handle complaints and provide information to the public for filing a notice of adverse decision with the board in accordance with Chapters 851 and 871.
Substance: The regulation includes provisions required pursuant to § 55-530 E, F, G, and I of the Code of Virginia. This includes, but may not be limited to, requirements for the association complaint process, process for filing a notice of final adverse decision, submitting an inquiry to the Office of the Common Interest Community Ombudsman, and related provisions.
Issues: The primary advantage to the public is that associations will be required to establish and utilize written complaint procedures to ensure the resolution of complaints from their members, and to inform their membership of the right to file a notice of final adverse decision with the board if the association issues a final decision adverse to their complaint. No disadvantage to the public could be identified.
The primary advantage to the Commonwealth is that the regulation will require association complainants to seek resolution within their association prior to filing any complaint with the Office of the Common Interest Community Ombudsman. No disadvantage to the Commonwealth could be identified.
Summary of the Proposed Amendments to Regulation. Pursuant to § 55-530, the Common Interest Community Board (Board) proposes to establish new regulations to require that common interest community (CIC) associations set rules for receiving and considering complaints from members and other citizens. Specifically, these proposed regulations will 1) require CIC associations to distribute their complaint policies and procedures to members, 2) require the maintenance of association complaint records, 3) set time frames in which CIC associations must complete certain actions, 4) indicate the consequences for failure of an association to establish and utilize a complaint procedure and 5) establish procedures and forms for filing a notice of final adverse decision.
Result of Analysis. The benefits likely exceed the costs for most proposed provisions of these new regulations. There is insufficient information to ascertain whether benefits outweigh costs for one of these proposed provisions.
Estimated Economic Impact. In 2008, the legislature made significant changes to the statutory provisions governing CICs. Amongst these changes was a requirement that the Board promulgate regulations that mandate CIC associations establish reasonable procedures for the resolution of written complaints from the members of an association and other citizens. By statute, associations must 1) maintain a record of complaints for at least a year, 2) provide complaint forms or written complaint procedures to complainants and 3) provide the Board with information, upon request, about complaints that have been referred to the Board after an associations final adverse decision.
The statute allows complainants to give notice of a final adverse decision to the Board within 30 days, with payment of a $25 fee and in accordance with the regulations that the Board is required to promulgate. The statute allows the Board to waive or refund the $25 fee for good cause shown.
The Board now proposes regulations in accordance with its statutory mandate. These regulations include:
1) pertinent definitions,
2) a stipulation that any documents that are required to be provided to the Board, or its director, shall be filed with the Department of Professional and Occupational Regulation (DPOR),
3) a requirement that CIC associations adopt written complaint procedures either within 90 days of promulgation of these regulations or within 90 days of initial registration with the Board,
4) a requirement that associations certify, in each required annual report, that their complaint procedures are current and in effect,
5) specific requirements for association complaint procedures which include a time frame of seven days for associations to provide written acknowledgement of the receipt of a complaint and to provide a written notice of final determination after that determination is made,
6) requirements, in accordance with the statute, for distribution of association complaint procedures,
7) a requirement that associations maintain record of complaints in accordance with statute and a requirement that associations provide documents requested by the director within 14 (calendar) days,
8) notice that associations that fail to comply with these promulgated regulations are subject to penalties set by the legislature, and
9) procedures for the Board receive and review any final adverse decisions that are referred to the Board by complainants.
Most of the provisions of these regulations closely follow and, in some cases, further clarify the statutory requirements with which CIC associations must comply; while there will be costs (bookkeeping costs, costs for providing documentation to the Board and costs for providing required notifications to complainants) associated with these requirements, they can be attributed to the underlying legislation rather than these proposed regulations. To the extent that these regulations allow affected entities to better understand their statutory obligations, these proposed regulations will provide a benefit for those entities.
The provisions of these proposed regulations that entail the Board setting time frames that are outside the statutory framework are the seven day time frame for notification of receipt of complaint, the seven day time frame for notification of final determination and the 14 (calendar) day time frame for CIC associations to provide documentation when requested by the Board or the director. DPOR reports that the Board chose to keep all time frames in calendar days to provide consistency throughout the regulations and that they chose time frames that they considered sufficient for both small and large associations to be able to provide required notifications or gather and deliver required documents. These provisions may, however, put small associations (that have fewer business days per week) at a distinct disadvantage in being able to meet regulatory requirements. Since these are new regulations that will newly impose these requirements, there is no information yet that would indicate whether smaller associations would be disadvantaged enough to outweigh the benefits of having regulatory time frames that allow complainants to receive required notifications quickly and the Board to gather required information expeditiously.
Businesses and Entities Affected. DPOR reports that there are approximately 4,650 CIC associations currently registered with the Board.
Effects on the Use and Value of Private Property. This regulatory action may change the way some CIC associations manage their complaint processes.
Small Businesses: Costs and Other Effects. Small businesses CIC management firms may incur bookkeeping, documentation and mail costs on account of this regulatory action.
Small Businesses: Alternative Method that Minimizes Adverse Impact. The Board may wish to change their 7 and 14 calendar day time frames for associations so that these time frames are counted in business days. This would allow associations with varying numbers of business days per week the same chance to comply with this regulatory provision.
Agency's Response to the Department of Planning and Budget's Economic Impact Analysis: Concur with the approval.
Regarding the comments pertaining to the sufficiency of seven days for notification of receipt of complaint, seven days for notification of final determination, and 14 days for an association to provide documentation when requested by the board or the director, the timeframes were established after deliberate consideration and are consistent with similar timeframes contained in the Property Owners' Association Act and the Condominium Act. The timeframes specified were carefully considered by the board, including their applicability to both large and small associations. The committee that developed the regulations consisted of a broad representation of individuals, including members of associations, common interest community managers, and attorneys specializing in common interest communities.
The two separate provisions that require notification of receipt of complaint to the complainant within seven days (subdivision 4 of 18VAC48-70-50) and notice of the final determination within seven days (subdivision 8 of 18VAC48-70-50) are to ensure prompt notification and are consistent with similar timeframes contained in the Property Owners' Association Act and the Condominium Act. Specifically, § 55-513 B of the Property Owners' Association Act provides the requirements by which an association must abide before imposing charges or suspension of a members right to use facilities. One of the requirements is the members' opportunity to be heard before any such charges or suspension may be imposed. The statute specifies that the hearing result must be delivered to the member within seven days of the hearing. In addition, § 55-79.80:2 of the Condominium Act includes provisions mirroring those contained in § 55-513 B of the Property Owners' Association Act, including the seven-day notification provision. The requirement that the notice of final determination be delivered to the complainant within seven days is necessary because the complainant must meet the statutorily mandated timeframe of 30 days for filing the notice of final adverse decision. If the board authorized a longer time period, then the complainant could have difficulty compiling the necessary information to file a notice of final adverse decision within the 30-day timeframe.
The regulation that requires an association to provide documentation requested by the board or the director within 14 days of the request (18VAC48-70-70 B) includes a provision for extending the timeframe specified upon a showing of extenuating circumstances prohibiting delivery within 14 days of receiving the request. In addition, the regulation is consistent with similar requirements for common interest community managers (which requires production of documents within 10 days of a request by the board). Further, this provision is necessary for ensuring the protection of the welfare of the public by requiring prompt response from the association when the department is reviewing a notice of final adverse decision submitted by a citizen.
The proposed regulation requires that common interest community (CIC) associations set rules for receiving and considering complaints from members and other citizens. Specifically, the proposed regulations (i) require CIC associations to distribute their complaint policies and procedures to members, (ii) require the maintenance of association complaint records, (iii) set time frames in which CIC associations must complete certain actions, (iv) indicate the consequences for failure of an association to establish and utilize a complaint procedure, and (v) establish procedures and forms for filing a notice of final adverse decision.
NOTICE: The following forms used in administering the regulation have been filed by the Common Interest Community Board. The forms are not being published; however, the names of the forms are listed below. Online users of this issue of the Virginia Register of Regulations may access the forms by clicking on the names of the forms. The forms are also available for public inspection at the Common Interest Community Board, 9960 Mayland Drive, Suite 400, Richmond, Virginia 23233, or at the Office of the Registrar of Regulations, General Assembly Building, 2nd Floor, Richmond, Virginia 23219.
Request for Waiver of Filing Fee (10/09).
Notice of Final Adverse Decision (10/09).
VA.R. Doc. No. R09-1873; Filed December 21, 2010, 2:29 p.m.