Virginia Administrative Code › Title 18 - PROFESSIONAL AND OCCUPATIONAL LICENSING › Agency 48 - COMMON INTEREST COMMUNITY BOARD › Chapter 30 - CONDOMINIUM REGULATIONS › Part V - Conversion Condominiums › Section 18VAC48-30-440 - Replacement requirements in conversion condominium

Current through Register Vol. 40, No. 24, July 15, 2024
A. Subject to the exceptions provided in
				  subsections B and H of this section, the section captioned "Replacement
				  Requirements" shall state the expected useful lives of all physical assets in
				  the condominium. The section shall state that expected useful lives run from
				  the date of the inspection by means of which the expected useful lives were
				  determined. Such inspection date shall be stated.
B. A single statement of the expected useful
				  life of a class of physical assets shall suffice to disclose the expected
				  useful life of each physical asset within the class; provided, however, that
				  such statement shall include a separate reference to the expected useful life
				  of any physical asset within such class that is significantly shorter than the
				  expected useful life indicated for the class generally.
C. An expected useful life may be qualified.
				  A qualified expected useful life is an expected useful life expressly
				  conditioned upon a given use or level of maintenance or other factor affecting
				  longevity. No use, level of maintenance, or other factor affecting longevity
				  shall be stated as a qualification unless such use, level of maintenance, or
				  factor affecting longevity is normal or reasonably anticipated for the physical
				  asset involved. If appropriate, an expected useful life may be stated as being
				  indefinite, subject to the stated qualification that the physical asset
				  involved must be properly used and maintained. An expected useful life may be
				  stated as being within a range of years, provided that the range is not so
				  broad as to render the statement meaningless. In no event shall the number of
				  years constituting the lower limit of such range be less than two-thirds of the
				  number of years constituting the upper limit.
D. Subject to the exceptions provided in
				  subsections E and H of this section, the section captioned "Replacement
				  Requirements" shall state the replacement costs of all physical assets in the
				  condominium including those whose expected useful lives are stated as being
				  indefinite.
E. A statement of the
				  replacement cost of a representative member of a class of physical assets shall
				  suffice to disclose the replacement cost of each physical asset within the
				  class; provided, however, that such statement shall include a separate
				  reference to the replacement cost of any physical asset within the class that
				  is significantly greater than the replacement cost indicated for the
				  representative member of the class.
F. Distinction shall be made between
				  replacement costs that will be common expenses and replacement costs that will
				  be borne by unit owners individually. The latter type of replacement costs
				  shall be broken down on a per unit basis. The purchaser's attention shall be
				  directed to the "Financial Matters" section for an indication of the amount of
				  the former type of replacement costs.
G. In any case in which the replacement cost
				  of a physical asset may vary depending upon the circumstances surrounding its
				  replacement, the stated replacement cost shall reflect the circumstances under
				  which replacement will most probably be undertaken.
H. A single expected useful life and an
				  aggregate replacement cost may be stated for all of the structural components
				  of a building or structure that have both (i) the same expected useful lives
				  and (ii) replacement costs that will constitute regular common expenses. A
				  statement made pursuant to the preceding sentence shall be accompanied by
				  statements of the expected useful lives and replacement costs, stated on a per
				  unit basis, of all of the structural components of the building or structure
				  whose expected useful lives differ from the general expected useful life or
				  whose replacement costs will be borne by unit owners individually.
Statutory Authority: § 54.1-2349 of the Code of
						Virginia.