Virginia Administrative Code › Title 18 - PROFESSIONAL AND OCCUPATIONAL LICENSING › Agency 48 - COMMON INTEREST COMMUNITY BOARD › Chapter 30 - CONDOMINIUM REGULATIONS › Part V - Conversion Condominiums › Section 18VAC48-30-420 - Financial matters, conversion condominium

Current through Register Vol. 40, No. 24, July 15, 2024
A. The provisions for capital reserves
				  described in the section captioned "Financial Matters" shall conform with
				  18VAC48-30-320 and shall be
				  supplemented by the information set forth in subsections B and C of this
				  section.
B. The section shall state
				  the aggregate replacement cost of all physical assets whose replacement costs
				  will constitute regular common expenses and whose expected useful lives are 10
				  years or less. For the purposes of this subsection, an expected useful life
				  that is stated as being within a range of years pursuant to subsection E of
				  18VAC48-30-440 shall be deemed to
				  be 10 years or less, if the lower limit of such range is 10 years or less. The
				  total common expense assessments per unit that would be necessary in order to
				  accumulate an amount of capital reserves equal to such aggregate replacement
				  cost shall be stated.
C. The
				  section shall state the amount of capital reserves that will be accumulated by
				  the unit owners' association during the period of declarant control together
				  with any provisions of the condominium instruments specifying the rate at which
				  reserves are to be accumulated thereafter. If any part of the capital reserves
				  will or may be obtained other than through regular common expense and limited
				  common expense assessments, such fact shall be stated.
D. The actual expenditures made over a
				  three-year period on operation, maintenance, repair, or other upkeep of the
				  property prior to its conversion to condominium shall be set forth in tabular
				  form as an exhibit immediately preceding or following the budget attached to
				  the public offering statement pursuant to subsection C of
				  18VAC48-30-320, and shall be
				  presented in a manner that is not misleading. Distinction shall be made between
				  expenditures that would have constituted regular common expenses and limited
				  common expenses, and expenditures that would have been borne by unit owners
				  individually if the property had been converted to a condominium prior to the
				  commencement of the three-year period. To the extent that it is impossible or
				  impracticable to so distinguish the expenditures it shall be assumed that they
				  would have constituted regular common expenses or limited common expenses.
Both types of expenditures shall be cumulatively broken
					 down on a per unit basis in the same proportion that common expenses are or
					 will actually be assessed against the condominium units. The three-year period
					 to which this subsection refers shall be the most recent three-year period
					 prior to application for registration during which the property was occupied
					 and for which expenditure information is available. The expenditure information
					 shall indicate the years for which expenditures are stated. If any portion of
					 the property being converted to condominium was not occupied for the full
					 three-year period, expenditure information shall be set forth only for the
					 entire time period that portion of the property was occupied. The "Financial
					 Matters" section shall direct the purchaser's attention to the expenditure
					 information.
Statutory Authority: § 54.1-2349 of the Code of
						Virginia.