{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-2354.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-2354.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-2354.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-2354.5.html"}],"law_id":78911,"edition_id":1,"section_id":78911,"structure_id":16314,"section_number":"54.1-2354.5","catch_line":"Common Interest Community Management Recovery Fund","history":"2008, cc. 851, 871, \u00a7 55-530.1; 2009, c. 557; 2013, c. 754; 2019, c. 712; 2025, c. 105.","full_text":"A\n\nThere is hereby created the Common Interest Community Management Recovery Fund, referred to in this section as “the Fund,” to be used in the discretion of the Board to protect the interests of associations.B\n\nEach common interest community manager, at the time of initial application for licensure, and each association filing its first annual report after the effective date shall be assessed $25, which shall be specifically assigned to the Fund. Initial payments may be incorporated in any application fee payment or annual filing fee and transferred to the Fund by the Director within 30 days.\n\t\t\tAll assessments, except initial assessments, for the Fund shall be deposited within three business days after their receipt by the Director, in one or more federally insured banks, savings and loan associations, or savings banks located in the Commonwealth. Funds deposited in banks, savings institutions, or savings banks in excess of insurance afforded by the Federal Deposit Insurance Corporation or other federal insurance agency shall be secured under the Virginia Security for Public Deposits Act (§ 2.2-4400 et seq.). The deposit of these funds in federally insured banks, savings and loan associations, or savings banks located in the Commonwealth shall not be considered investment of such funds for purposes of this section. Funds maintained by the Director may be invested in securities that are legal investments for fiduciaries under the provisions of § 64.2-1502.\n\t\t\tInterest earned on the deposits constituting the Fund shall be used for administering the Fund. The remainder of this interest, at the discretion of the Board, may be transferred to the Common Interest Community Management Information Fund, established pursuant to § 54.1-2354.2, or accrue to the Fund.C\n\nOn and after July 1, 2011, the minimum balance of the Fund shall be $150,000. Whenever the Director determines that the principal balance of the Fund is or will be less than such minimum principal balance, the Director shall immediately inform the Board. At the same time, the Director may recommend that the Board transfer a fixed amount from the Common Interest Community Management Information Fund to the Fund to bring the principal balance of the Fund to the amount required by this subsection. Such transfer shall be considered by the Board within 30 days of the notification of the Director.D\n\nIf any such transfer of funds is insufficient to bring the principal balance of the Fund to the minimum amount required by this section, or if a transfer to the Fund has not occurred, the Board shall assess each association and each common interest community manager, within 30 days of notification by the Director, a sum sufficient to bring the principal balance of the Fund to the required minimum amount. The amount of such assessment shall be allocated among the associations and common interest community managers in proportion to each payor’s most recently paid annual assessment, or if an association or common interest community manager has not paid an annual assessment previously, in proportion to the average annual assessment most recently paid by associations or common interest community managers, respectively. The Board may order an assessment at any time in addition to any required assessment. Assessments made pursuant to this subsection may be issued by the Board (i) after a determination made by it or (ii) at the time of license renewal.\n\t\t\tNotice to common interest community managers and the governing boards of associations of these assessments shall be by first-class mail, and payment of such assessments shall be made by first-class mail addressed to the Director within 45 days after the mailing of such notice.E\n\nIf any common interest community manager fails to remit the required payment within 45 days of the mailing, the Director shall notify the common interest community manager by first-class mail at the latest address of record filed with the Board. If no payment has been received by the Director within 30 days after mailing the second notice, the license shall be automatically suspended. The license shall be restored only upon the actual receipt by the Director of the delinquent assessment.F\n\nIf any association fails to remit the required payment within 45 days of the mailing, the Director shall notify the association by first-class mail at the latest address of record filed with the Board. If no payment has been received by the Director within 30 days after mailing the second notice, it shall be deemed a knowing and willful violation of this section by the governing board of the association.G\n\nAt the close of each fiscal year, whenever the balance of the Fund exceeds $5 million, the amount in excess of $5 million shall be transferred to the Virginia Housing Trust Fund established pursuant to Chapter 9 (§ 36-141 et seq.) of Title 36. Except for payments of costs as set forth in this article and transfers pursuant to this subsection, there shall be no transfers out of the Fund, including transfers to the general fund, regardless of the balance of the Fund.H\n\nA claimant may seek recovery from the Fund subject to the following conditions:1\n\nA claimant may file a verified claim in writing to the Director for a recovery from the Fund.2\n\nUpon proper application to the Director, in those cases in which there are not sufficient funds to pay an award of reasonable fees, costs, and expenses to the receiver or to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager, the Director shall report to the Board the amount of any shortfall to the extent that there are not sufficient funds (i) to pay any award of fees, costs, and expenses pursuant to subsection H of § 54.1-2353 by the court appointing the receiver; or (ii) to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager, as certified by the court appointing the receiver.3\n\nIf the Board finds there has been compliance with the required conditions, the Board shall issue a directive ordering payment of the amount of such shortfall to the claimant from the Fund, provided that in no event shall such payment exceed the balance in the Fund. When the Fund balance is not sufficient to pay the aggregate amount of such shortfall, the Board shall direct that payment be applied first in satisfaction of any award of reasonable fees, costs, and expenses to the receiver and second to restore the funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager. If the Board has reason to believe that there may be additional claims against the Fund, the Board may withhold any payment from the Fund for a period of not more than one year. After such one-year period, if the aggregate of claims received exceeds the Fund balance, the Fund balance shall be prorated by the Board among the claimants and paid in the above payment order from the Fund in proportion to the amounts of claims remaining unpaid.4\n\nThe Director shall, subject to the limitations set forth in this subsection, pay to the claimant from the Fund such amount as shall be directed by the Board upon the execution and delivery to the Director by such claimant of an assignment to the Board of the claimant’s rights on its behalf and on behalf of the associations receiving distributions from the Fund against the common interest community manager to the extent that such rights were satisfied from the Fund.5\n\nThe claimant shall be notified in writing of the findings of the Board. The Board’s findings shall be considered a case decision as defined in § 2.2-4001, and judicial review of these findings shall be in accordance with § 2.2-4025 of the Administrative Process Act (§ 2.2-4000 et seq.).6\n\nNotwithstanding any other provision of law, the Board shall have the right to appeal a decision of any court that is contrary to any distribution recommended or authorized by it.7\n\nUpon payment by the Director to a claimant from the Fund as provided in this subsection, the Board shall immediately revoke the license of the common interest community manager whose actions resulted in payment from the Fund. The common interest community manager whose license was so revoked shall not be eligible to apply for a license as a common interest community manager until he has repaid in full the amount paid from the Fund on his account, plus interest at the judgment rate of interest from the date of payment from the Fund.8\n\nNothing contained in this subsection shall limit the authority of the Board to take disciplinary action against any common interest community manager for any violation of statute or regulation, nor shall the repayment in full by a common interest community manager of the amount paid from the Fund on such common interest community manager’s account nullify or modify the effect of any disciplinary proceeding against such common interest community manager for any such violation.","order_by":null,"text":{"0":{"id":282638,"text":"There is hereby created the Common Interest Community Management Recovery Fund, referred to in this section as “the Fund,” to be used in the discretion of the Board to protect the interests of associations.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":282639,"text":"Each common interest community manager, at the time of initial application for licensure, and each association filing its first annual report after the effective date shall be assessed $25, which shall be specifically assigned to the Fund. Initial payments may be incorporated in any application fee payment or annual filing fee and transferred to the Fund by the Director within 30 days.\n\t\t\tAll assessments, except initial assessments, for the Fund shall be deposited within three business days after their receipt by the Director, in one or more federally insured banks, savings and loan associations, or savings banks located in the Commonwealth. Funds deposited in banks, savings institutions, or savings banks in excess of insurance afforded by the Federal Deposit Insurance Corporation or other federal insurance agency shall be secured under the Virginia Security for Public Deposits Act (§ 2.2-4400 et seq.). The deposit of these funds in federally insured banks, savings and loan associations, or savings banks located in the Commonwealth shall not be considered investment of such funds for purposes of this section. Funds maintained by the Director may be invested in securities that are legal investments for fiduciaries under the provisions of § 64.2-1502.\n\t\t\tInterest earned on the deposits constituting the Fund shall be used for administering the Fund. The remainder of this interest, at the discretion of the Board, may be transferred to the Common Interest Community Management Information Fund, established pursuant to § 54.1-2354.2, or accrue to the Fund.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":282640,"text":"On and after July 1, 2011, the minimum balance of the Fund shall be $150,000. Whenever the Director determines that the principal balance of the Fund is or will be less than such minimum principal balance, the Director shall immediately inform the Board. At the same time, the Director may recommend that the Board transfer a fixed amount from the Common Interest Community Management Information Fund to the Fund to bring the principal balance of the Fund to the amount required by this subsection. Such transfer shall be considered by the Board within 30 days of the notification of the Director.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":282641,"text":"If any such transfer of funds is insufficient to bring the principal balance of the Fund to the minimum amount required by this section, or if a transfer to the Fund has not occurred, the Board shall assess each association and each common interest community manager, within 30 days of notification by the Director, a sum sufficient to bring the principal balance of the Fund to the required minimum amount. The amount of such assessment shall be allocated among the associations and common interest community managers in proportion to each payor’s most recently paid annual assessment, or if an association or common interest community manager has not paid an annual assessment previously, in proportion to the average annual assessment most recently paid by associations or common interest community managers, respectively. The Board may order an assessment at any time in addition to any required assessment. Assessments made pursuant to this subsection may be issued by the Board (i) after a determination made by it or (ii) at the time of license renewal.\n\t\t\tNotice to common interest community managers and the governing boards of associations of these assessments shall be by first-class mail, and payment of such assessments shall be made by first-class mail addressed to the Director within 45 days after the mailing of such notice.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":282642,"text":"If any common interest community manager fails to remit the required payment within 45 days of the mailing, the Director shall notify the common interest community manager by first-class mail at the latest address of record filed with the Board. If no payment has been received by the Director within 30 days after mailing the second notice, the license shall be automatically suspended. The license shall be restored only upon the actual receipt by the Director of the delinquent assessment.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":282643,"text":"If any association fails to remit the required payment within 45 days of the mailing, the Director shall notify the association by first-class mail at the latest address of record filed with the Board. If no payment has been received by the Director within 30 days after mailing the second notice, it shall be deemed a knowing and willful violation of this section by the governing board of the association.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":282644,"text":"At the close of each fiscal year, whenever the balance of the Fund exceeds $5 million, the amount in excess of $5 million shall be transferred to the Virginia Housing Trust Fund established pursuant to Chapter 9 (§ 36-141 et seq.) of Title 36. Except for payments of costs as set forth in this article and transfers pursuant to this subsection, there shall be no transfers out of the Fund, including transfers to the general fund, regardless of the balance of the Fund.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":282645,"text":"A claimant may seek recovery from the Fund subject to the following conditions:","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"H1"},"8":{"id":282646,"text":"A claimant may file a verified claim in writing to the Director for a recovery from the Fund.","type":"section","prefixes":["H","1"],"prefix":"1","entire_prefix":"H1","prefix_anchor":"H1","level":2,"prior_prefix":"H","next_prefix":"H2"},"9":{"id":282647,"text":"Upon proper application to the Director, in those cases in which there are not sufficient funds to pay an award of reasonable fees, costs, and expenses to the receiver or to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager, the Director shall report to the Board the amount of any shortfall to the extent that there are not sufficient funds (i) to pay any award of fees, costs, and expenses pursuant to subsection H of § 54.1-2353 by the court appointing the receiver; or (ii) to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager, as certified by the court appointing the receiver.","type":"section","prefixes":["H","2"],"prefix":"2","entire_prefix":"H2","prefix_anchor":"H2","level":2,"prior_prefix":"H1","next_prefix":"H3"},"10":{"id":282648,"text":"If the Board finds there has been compliance with the required conditions, the Board shall issue a directive ordering payment of the amount of such shortfall to the claimant from the Fund, provided that in no event shall such payment exceed the balance in the Fund. When the Fund balance is not sufficient to pay the aggregate amount of such shortfall, the Board shall direct that payment be applied first in satisfaction of any award of reasonable fees, costs, and expenses to the receiver and second to restore the funds that were or ought to have been held in a fiduciary capacity by the subject common interest community manager. If the Board has reason to believe that there may be additional claims against the Fund, the Board may withhold any payment from the Fund for a period of not more than one year. After such one-year period, if the aggregate of claims received exceeds the Fund balance, the Fund balance shall be prorated by the Board among the claimants and paid in the above payment order from the Fund in proportion to the amounts of claims remaining unpaid.","type":"section","prefixes":["H","3"],"prefix":"3","entire_prefix":"H3","prefix_anchor":"H3","level":2,"prior_prefix":"H2","next_prefix":"H4"},"11":{"id":282649,"text":"The Director shall, subject to the limitations set forth in this subsection, pay to the claimant from the Fund such amount as shall be directed by the Board upon the execution and delivery to the Director by such claimant of an assignment to the Board of the claimant’s rights on its behalf and on behalf of the associations receiving distributions from the Fund against the common interest community manager to the extent that such rights were satisfied from the Fund.","type":"section","prefixes":["H","4"],"prefix":"4","entire_prefix":"H4","prefix_anchor":"H4","level":2,"prior_prefix":"H3","next_prefix":"H5"},"12":{"id":282650,"text":"The claimant shall be notified in writing of the findings of the Board. The Board’s findings shall be considered a case decision as defined in § 2.2-4001, and judicial review of these findings shall be in accordance with § 2.2-4025 of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["H","5"],"prefix":"5","entire_prefix":"H5","prefix_anchor":"H5","level":2,"prior_prefix":"H4","next_prefix":"H6"},"13":{"id":282651,"text":"Notwithstanding any other provision of law, the Board shall have the right to appeal a decision of any court that is contrary to any distribution recommended or authorized by it.","type":"section","prefixes":["H","6"],"prefix":"6","entire_prefix":"H6","prefix_anchor":"H6","level":2,"prior_prefix":"H5","next_prefix":"H7"},"14":{"id":282652,"text":"Upon payment by the Director to a claimant from the Fund as provided in this subsection, the Board shall immediately revoke the license of the common interest community manager whose actions resulted in payment from the Fund. The common interest community manager whose license was so revoked shall not be eligible to apply for a license as a common interest community manager until he has repaid in full the amount paid from the Fund on his account, plus interest at the judgment rate of interest from the date of payment from the Fund.","type":"section","prefixes":["H","7"],"prefix":"7","entire_prefix":"H7","prefix_anchor":"H7","level":2,"prior_prefix":"H6","next_prefix":"H8"},"15":{"id":282653,"text":"Nothing contained in this subsection shall limit the authority of the Board to take disciplinary action against any common interest community manager for any violation of statute or regulation, nor shall the repayment in full by a common interest community manager of the amount paid from the Fund on such common interest community manager’s account nullify or modify the effect of any disciplinary proceeding against such common interest community manager for any such violation.","type":"section","prefixes":["H","8"],"prefix":"8","entire_prefix":"H8","prefix_anchor":"H8","level":2,"prior_prefix":"H7"}},"ancestry":[{"id":16314,"edition_id":1,"name":"Common Interest Community Management Information Fund; Common Interest Community Ombudsman; Common Interest Community Management Recovery Fund","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13763,"metadata":{},"date_created":"2026-06-26 04:13:43","date_modified":"2026-06-26 04:13:43","permalink":{"id":240463,"object_type":"structure","relational_id":16314,"identifier":"2","token":"54.1\/II\/23.3\/2","url":"\/54.1\/II\/23.3\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13763,"edition_id":1,"name":"Common Interest Communities","identifier":"23.3","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:45:49","date_modified":"2026-06-26 03:45:49","permalink":{"id":240415,"object_type":"structure","relational_id":13763,"identifier":"23.3","token":"54.1\/II\/23.3","url":"\/54.1\/II\/23.3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12755,"edition_id":1,"name":"Professions and Occupations Regulated by the Department of Professional and Occupational Regulation and Boards Within the Department","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12754,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239415,"object_type":"structure","relational_id":12755,"identifier":"II","token":"54.1\/II","url":"\/54.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12754,"edition_id":1,"name":"Professions and Occupations","identifier":"54.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239313,"object_type":"structure","relational_id":12754,"identifier":"54.1","token":"54.1","url":"\/54.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66664,"structure_id":16314,"section_number":"54.1-2354.1","catch_line":"Definitions","url":"\/54.1-2354.1\/","token":"54.1\/II\/23.3\/2\/54.1-2354.1","metadata":false},{"id":87051,"structure_id":16314,"section_number":"54.1-2354.2","catch_line":"Common Interest Community Management Information Fund","url":"\/54.1-2354.2\/","token":"54.1\/II\/23.3\/2\/54.1-2354.2","metadata":false},{"id":79532,"structure_id":16314,"section_number":"54.1-2354.3","catch_line":"Common Interest Community Ombudsman; appointment; powers and duties","url":"\/54.1-2354.3\/","token":"54.1\/II\/23.3\/2\/54.1-2354.3","metadata":false},{"id":68863,"structure_id":16314,"section_number":"54.1-2354.4","catch_line":"Association complaint procedures; final adverse decisions","url":"\/54.1-2354.4\/","token":"54.1\/II\/23.3\/2\/54.1-2354.4","metadata":false},{"id":78911,"structure_id":16314,"section_number":"54.1-2354.5","catch_line":"Common Interest Community Management Recovery Fund","url":"\/54.1-2354.5\/","token":"54.1\/II\/23.3\/2\/54.1-2354.5","metadata":false}],"previous_section":{"id":68863,"structure_id":16314,"section_number":"54.1-2354.4","catch_line":"Association complaint procedures; final adverse decisions","url":"\/54.1-2354.4\/","token":"54.1\/II\/23.3\/2\/54.1-2354.4","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-2354.5\/","history_text":"

This law was first created in 2008. The record of its establishment is cataloged in chapters 851<\/a> and 871<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2009, chapter 557<\/a>; in 2013, chapter 754<\/a>; in 2019, chapter 712<\/a>; in 2025, chapter 105<\/a>.<\/p>","references":[{"id":54774,"section_number":"54.1-2353","catch_line":"Protection of the interests of associations; appointment of receiver for common interest community manager","order_by":null,"url":"\/54.1-2353\/"},{"id":57622,"section_number":"55.1-2316","catch_line":"Resale certificate; fees","order_by":null,"url":"\/55.1-2316\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":83688,"section_number":"2.2-4001","catch_line":"Definitions","order_by":null,"url":"\/2.2-4001\/"},{"id":69646,"section_number":"2.2-4025","catch_line":"Exemptions operation of this article; limitations","order_by":null,"url":"\/2.2-4025\/"},{"id":63923,"section_number":"2.2-4400","catch_line":"Short title; declaration of intent; applicability","order_by":null,"url":"\/2.2-4400\/"},{"id":84587,"section_number":"36-141","catch_line":"Definitions","order_by":null,"url":"\/36-141\/"},{"id":54774,"section_number":"54.1-2353","catch_line":"Protection of the interests of associations; appointment of receiver for common interest community manager","order_by":null,"url":"\/54.1-2353\/"},{"id":87051,"section_number":"54.1-2354.2","catch_line":"Common Interest Community Management Information Fund","order_by":null,"url":"\/54.1-2354.2\/"},{"id":55439,"section_number":"64.2-1502","catch_line":"In what securities fiduciaries may invest; definitions","order_by":null,"url":"\/64.2-1502\/"}],"permalink":{"id":240481,"object_type":"law","relational_id":78911,"identifier":"54.1-2354.5","token":"54.1\/II\/23.3\/2\/54.1-2354.5","url":"\/54.1-2354.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-2354.5\/","token":"54.1\/II\/23.3\/2\/54.1-2354.5","dublin_core":{"Title":"Common Interest Community Management Recovery Fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-2354.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> There is hereby created the Common Interest Community<\/span> Management Recovery Fund, referred to in this section as “the Fund,” to be used in the discretion of the Board<\/span> to protect the interests of associations<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each common interest community<\/span> manager<\/span>, at the time of initial application for licensure, and each association<\/span> filing its first annual report after the effective date shall be assessed $25, which shall be specifically assigned to the Fund. Initial payments may be incorporated in any application fee payment or annual filing fee and transferred to the Fund by the Director<\/span> within 30 days.\n\t\t\tAll assessments, except initial assessments, for the Fund shall be deposited within three business days after their receipt by the Director<\/span>, in one or more federally insured banks, savings and loan associations<\/span>, or savings banks located in the Commonwealth. Funds deposited in banks, savings institutions, or savings banks in excess of insurance afforded by the Federal Deposit Insurance Corporation or other federal insurance agency shall be secured under the Virginia Security for Public Deposits Act (§ 2.2-4400<\/a> et seq.). The deposit of these funds in federally insured banks, savings and loan associations<\/span>, or savings banks located in the Commonwealth shall not be considered investment of such funds for purposes of this section. Funds maintained by the Director<\/span> may be invested in securities that are legal investments for fiduciaries under the provisions of § 64.2-1502<\/a>.\n\t\t\tInterest earned on the deposits constituting the Fund shall be used for administering the Fund. The remainder of this interest, at the discretion of the Board<\/span>, may be transferred to the Common Interest Community<\/span> Management Information Fund, established pursuant to § 54.1-2354.2<\/a>, or accrue to the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> On and after July 1, 2011, the minimum balance of the Fund<\/span> shall be $150,000. Whenever the Director<\/span> determines that the principal balance of the Fund<\/span> is or will be less than such minimum principal balance, the Director<\/span> shall immediately inform the Board<\/span>. At the same time, the Director<\/span> may recommend that the Board<\/span> transfer a fixed amount from the Common Interest Community<\/span> Management Information Fund to the Fund to bring the principal balance of the Fund<\/span> to the amount required by this subsection. Such transfer shall be considered by the Board<\/span> within 30 days of the notification of the Director<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If any such transfer of funds is insufficient to bring the principal balance of the Fund<\/span> to the minimum amount required by this section, or if a transfer to the Fund has not occurred, the Board<\/span> shall assess each association<\/span> and each common interest community<\/span> manager<\/span>, within 30 days of notification by the Director<\/span>, a sum sufficient to bring the principal balance of the Fund<\/span> to the required minimum amount. The amount of such assessment shall be allocated among the associations<\/span> and common interest community<\/span> managers<\/span> in proportion to each payor’s most recently paid annual assessment, or if an association<\/span> or common interest community<\/span> manager<\/span> has not paid an annual assessment previously, in proportion to the average annual assessment most recently paid by associations<\/span> or common interest community<\/span> managers<\/span>, respectively. The Board<\/span> may order<\/span> an assessment at any time in addition to any required assessment. Assessments made pursuant to this subsection may be issued by the Board<\/span> (i) after a determination made by it or (ii) at the time of license renewal.\n\t\t\tNotice to common interest community<\/span> managers<\/span> and the governing boards<\/span> of associations<\/span> of these assessments shall be by first-class mail, and payment of such assessments shall be made by first-class mail addressed to the Director<\/span> within 45 days after the mailing of such notice. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If any common interest community<\/span> manager<\/span> fails to remit the required payment within 45 days of the mailing, the Director<\/span> shall notify the common interest community<\/span> manager<\/span> by first-class mail at the latest address of record filed with the Board<\/span>. If no payment has been received by the Director<\/span> within 30 days after mailing the second notice, the license shall be automatically suspended. The license shall be restored only upon the actual receipt by the Director<\/span> of the delinquent assessment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> If any association<\/span> fails to remit the required payment within 45 days of the mailing, the Director<\/span> shall notify the association<\/span> by first-class mail at the latest address of record filed with the Board. If no payment has been received by the Director<\/span> within 30 days after mailing the second notice, it shall be deemed a knowing and willful violation of this section by the governing board<\/span> of the association<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> At the close of each fiscal year, whenever the balance of the Fund<\/span> exceeds $5 million, the amount in excess of $5 million shall be transferred to the Virginia Housing Trust Fund established pursuant to Chapter 9 (§ 36-141<\/a> et seq.) of Title 36. Except for payments of costs as set forth in this article and transfers pursuant to this subsection, there shall be no transfers out of the Fund, including transfers to the general fund, regardless of the balance of the Fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> A claimant may seek recovery from the Fund subject to the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A claimant may file a verified claim in writing to the Director<\/span> for a recovery from the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Upon proper application to the Director<\/span>, in those cases in which there are not sufficient funds to pay an award of reasonable fees, costs, and expenses to the receiver or to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community<\/span> manager<\/span>, the Director<\/span> shall report to the Board the amount of any shortfall to the extent that there are not sufficient funds (i) to pay any award of fees, costs, and expenses pursuant to subsection H of § 54.1-2353<\/a> by the court<\/span> appointing the receiver; or (ii) to restore all funds that were or ought to have been held in a fiduciary capacity by the subject common interest community<\/span> manager<\/span>, as certified by the court<\/span> appointing the receiver. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the Board finds there has been compliance with the required conditions, the Board shall issue<\/span> a directive ordering payment of the amount of such shortfall to the claimant from the Fund, provided that in no event shall such payment exceed the balance in the Fund. When the Fund balance is not sufficient to pay the aggregate amount of such shortfall, the Board shall direct that payment be applied first in satisfaction of any award of reasonable fees, costs, and expenses to the receiver and second to restore the funds that were or ought to have been held in a fiduciary capacity by the subject common interest community<\/span> manager<\/span>. If the Board has reason to believe that there may be additional claims against the Fund, the Board may withhold any payment from the Fund for a period of not more than one year. After such one-year period, if the aggregate of claims received exceeds the Fund balance, the Fund balance shall be prorated by the Board among the claimants and paid in the above payment order<\/span> from the Fund in proportion to the amounts of claims remaining unpaid. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The Director<\/span> shall, subject to the limitations set forth in this subsection, pay to the claimant from the Fund such amount as shall be directed by the Board upon the execution and delivery to the Director<\/span> by such claimant of an assignment to the Board of the claimant’s rights on its behalf and on behalf of the associations<\/span> receiving distributions from the Fund against the common interest community<\/span> manager<\/span> to the extent that such rights were satisfied from the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The claimant shall be notified in writing of the findings<\/span> of the Board. The Board’s findings<\/span> shall be considered a case decision as defined in § 2.2-4001<\/a>, and judicial review of these findings<\/span> shall be in accordance with § 2.2-4025<\/a> of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Notwithstanding any other provision of law<\/span>, the Board shall have the right to appeal<\/span> a decision of any court<\/span> that is contrary to any distribution recommended or authorized by it. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Upon payment by the Director<\/span> to a claimant from the Fund as provided in this subsection, the Board shall immediately revoke the license of the common interest community<\/span> manager<\/span> whose actions resulted in payment from the Fund. The common interest community<\/span> manager<\/span> whose license was so revoked shall not be eligible to apply for a license as a common interest community<\/span> manager<\/span> until he has repaid in full the amount paid from the Fund on his account, plus interest at the judgment<\/span> rate of interest from the date of payment from the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Nothing contained in this subsection shall limit the authority of the Board to take disciplinary action against any common interest community<\/span> manager<\/span> for any violation of statute<\/span> or regulation, nor shall the repayment in full by a common interest community<\/span> manager<\/span> of the amount paid from the Fund on such common interest community<\/span> manager<\/span>’s account nullify or modify the effect of any disciplinary proceeding against such common interest community<\/span> manager<\/span> for any such violation. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCOMMON INTEREST COMMUNITY MANAGEMENT RECOVERY FUND (\u00a7 54.1-2354.5)\n\nA. There is hereby created the Common Interest Community Management Recovery\nFund, referred to in this section as “the Fund,” to be used in the\ndiscretion of the Board to protect the interests of associations.\n\nB. Each common interest community manager, at the time of initial application\nfor licensure, and each association filing its first annual report after the\neffective date shall be assessed $25, which shall be specifically assigned to\nthe Fund. Initial payments may be incorporated in any application fee payment or\nannual filing fee and transferred to the Fund by the Director within 30 days.\n\t\t\tAll assessments, except initial assessments, for the Fund shall be deposited\nwithin three business days after their receipt by the Director, in one or more\nfederally insured banks, savings and loan associations, or savings banks located\nin the Commonwealth. Funds deposited in banks, savings institutions, or savings\nbanks in excess of insurance afforded by the Federal Deposit Insurance\nCorporation or other federal insurance agency shall be secured under the\nVirginia Security for Public Deposits Act (§ 2.2-4400 et seq.). The deposit\nof these funds in federally insured banks, savings and loan associations, or\nsavings banks located in the Commonwealth shall not be considered investment of\nsuch funds for purposes of this section. Funds maintained by the Director may be\ninvested in securities that are legal investments for fiduciaries under the\nprovisions of § 64.2-1502.\n\t\t\tInterest earned on the deposits constituting the Fund shall be used for\nadministering the Fund. The remainder of this interest, at the discretion of the\nBoard, may be transferred to the Common Interest Community Management\nInformation Fund, established pursuant to § 54.1-2354.2, or accrue to the\nFund.\n\nC. On and after July 1, 2011, the minimum balance of the Fund shall be $150,000.\nWhenever the Director determines that the principal balance of the Fund is or\nwill be less than such minimum principal balance, the Director shall immediately\ninform the Board. At the same time, the Director may recommend that the Board\ntransfer a fixed amount from the Common Interest Community Management\nInformation Fund to the Fund to bring the principal balance of the Fund to the\namount required by this subsection. Such transfer shall be considered by the\nBoard within 30 days of the notification of the Director.\n\nD. If any such transfer of funds is insufficient to bring the principal balance\nof the Fund to the minimum amount required by this section, or if a transfer to\nthe Fund has not occurred, the Board shall assess each association and each\ncommon interest community manager, within 30 days of notification by the\nDirector, a sum sufficient to bring the principal balance of the Fund to the\nrequired minimum amount. The amount of such assessment shall be allocated among\nthe associations and common interest community managers in proportion to each\npayor’s most recently paid annual assessment, or if an association or\ncommon interest community manager has not paid an annual assessment previously,\nin proportion to the average annual assessment most recently paid by\nassociations or common interest community managers, respectively. The Board may\norder an assessment at any time in addition to any required assessment.\nAssessments made pursuant to this subsection may be issued by the Board (i)\nafter a determination made by it or (ii) at the time of license renewal.\n\t\t\tNotice to common interest community managers and the governing boards of\nassociations of these assessments shall be by first-class mail, and payment of\nsuch assessments shall be made by first-class mail addressed to the Director\nwithin 45 days after the mailing of such notice.\n\nE. If any common interest community manager fails to remit the required payment\nwithin 45 days of the mailing, the Director shall notify the common interest\ncommunity manager by first-class mail at the latest address of record filed with\nthe Board. If no payment has been received by the Director within 30 days after\nmailing the second notice, the license shall be automatically suspended. The\nlicense shall be restored only upon the actual receipt by the Director of the\ndelinquent assessment.\n\nF. If any association fails to remit the required payment within 45 days of the\nmailing, the Director shall notify the association by first-class mail at the\nlatest address of record filed with the Board. If no payment has been received\nby the Director within 30 days after mailing the second notice, it shall be\ndeemed a knowing and willful violation of this section by the governing board of\nthe association.\n\nG. At the close of each fiscal year, whenever the balance of the Fund exceeds $5\nmillion, the amount in excess of $5 million shall be transferred to the Virginia\nHousing Trust Fund established pursuant to Chapter 9 (§ 36-141 et seq.) of\nTitle 36. Except for payments of costs as set forth in this article and\ntransfers pursuant to this subsection, there shall be no transfers out of the\nFund, including transfers to the general fund, regardless of the balance of the\nFund.\n\nH. A claimant may seek recovery from the Fund subject to the following\nconditions:\n\n 1. A claimant may file a verified claim in writing to the Director for a\n recovery from the Fund.\n\n 2. Upon proper application to the Director, in those cases in which there are\n not sufficient funds to pay an award of reasonable fees, costs, and expenses\n to the receiver or to restore all funds that were or ought to have been held\n in a fiduciary capacity by the subject common interest community manager, the\n Director shall report to the Board the amount of any shortfall to the extent\n that there are not sufficient funds (i) to pay any award of fees, costs, and\n expenses pursuant to subsection H of § 54.1-2353 by the court appointing\n the receiver; or (ii) to restore all funds that were or ought to have been\n held in a fiduciary capacity by the subject common interest community manager,\n as certified by the court appointing the receiver.\n\n 3. If the Board finds there has been compliance with the required conditions,\n the Board shall issue a directive ordering payment of the amount of such\n shortfall to the claimant from the Fund, provided that in no event shall such\n payment exceed the balance in the Fund. When the Fund balance is not\n sufficient to pay the aggregate amount of such shortfall, the Board shall\n direct that payment be applied first in satisfaction of any award of\n reasonable fees, costs, and expenses to the receiver and second to restore the\n funds that were or ought to have been held in a fiduciary capacity by the\n subject common interest community manager. If the Board has reason to believe\n that there may be additional claims against the Fund, the Board may withhold\n any payment from the Fund for a period of not more than one year. After such\n one-year period, if the aggregate of claims received exceeds the Fund balance,\n the Fund balance shall be prorated by the Board among the claimants and paid\n in the above payment order from the Fund in proportion to the amounts of\n claims remaining unpaid.\n\n 4. The Director shall, subject to the limitations set forth in this\n subsection, pay to the claimant from the Fund such amount as shall be directed\n by the Board upon the execution and delivery to the Director by such claimant\n of an assignment to the Board of the claimant’s rights on its behalf and\n on behalf of the associations receiving distributions from the Fund against\n the common interest community manager to the extent that such rights were\n satisfied from the Fund.\n\n 5. The claimant shall be notified in writing of the findings of the Board. The\n Board’s findings shall be considered a case decision as defined in\n § 2.2-4001, and judicial review of these findings shall be in accordance\n with § 2.2-4025 of the Administrative Process Act (§ 2.2-4000 et\n seq.).\n\n 6. Notwithstanding any other provision of law, the Board shall have the right\n to appeal a decision of any court that is contrary to any distribution\n recommended or authorized by it.\n\n 7. Upon payment by the Director to a claimant from the Fund as provided in\n this subsection, the Board shall immediately revoke the license of the common\n interest community manager whose actions resulted in payment from the Fund.\n The common interest community manager whose license was so revoked shall not\n be eligible to apply for a license as a common interest community manager\n until he has repaid in full the amount paid from the Fund on his account, plus\n interest at the judgment rate of interest from the date of payment from the\n Fund.\n\n 8. Nothing contained in this subsection shall limit the authority of the Board\n to take disciplinary action against any common interest community manager for\n any violation of statute or regulation, nor shall the repayment in full by a\n common interest community manager of the amount paid from the Fund on such\n common interest community manager’s account nullify or modify the effect\n of any disciplinary proceeding against such common interest community manager\n for any such violation.\n\nHISTORY: 2008, cc. 851, 871, \u00a7 55-530.1; 2009, c. 557; 2013, c. 754; 2019, c.\n712; 2025, c. 105.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}