{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-1826.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-1826.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-1826.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-1826.html"}],"law_id":63899,"edition_id":1,"section_id":63899,"structure_id":14602,"section_number":"55.1-1826","catch_line":"Annual budget; reserve study; reserves for capital components","history":"2002, c. 459, \u00a7 55-514.1; 2019, cc. 33, 44, 712; 2024, c. 324.","full_text":"A\n\nPrior to the commencement of the fiscal year, the board of directors shall make available to lot owners either (i) the annual budget of the association or (ii) a summary of such annual budget.B\n\nThe board of directors shall:1\n\nConduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace, and restore the capital components as defined in § 55.1-1800;2\n\nReview the results of that study at least annually to determine if reserves are sufficient; and3\n\nMake any adjustments to the annual budget and annual assessment the board of directors deems necessary to maintain reserves, as appropriate.C\n\nTo the extent that the reserve study conducted in accordance with this section indicates a need to budget for reserves, the association budget shall include:1\n\nThe current estimated replacement cost, estimated remaining life, and estimated useful life of the capital components as defined in § 55.1-1800;2\n\nAs of the beginning of the fiscal year for which the budget is prepared, the current amount of accumulated cash reserves set aside to repair, replace, or restore capital components and the amount of the expected contribution to the reserve fund for that year;3\n\nA statement describing the procedures used for estimation and accumulation of cash reserves pursuant to this section; and4\n\nA statement of the amount of reserves recommended in the study and the amount of current cash for replacement reserves.D\n\nThe board of directors shall have the discretion to meet repair and replacement requirements through replacement reserves, additional assessments, or borrowed funds.","order_by":null,"text":{"0":{"id":232721,"text":"Prior to the commencement of the fiscal year, the board of directors shall make available to lot owners either (i) the annual budget of the association or (ii) a summary of such annual budget.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":232722,"text":"The board of directors shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":232723,"text":"Conduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace, and restore the capital components as defined in § 55.1-1800;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":232724,"text":"Review the results of that study at least annually to determine if reserves are sufficient; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":232725,"text":"Make any adjustments to the annual budget and annual assessment the board of directors deems necessary to maintain reserves, as appropriate.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":232726,"text":"To the extent that the reserve study conducted in accordance with this section indicates a need to budget for reserves, the association budget shall include:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"6":{"id":232727,"text":"The current estimated replacement cost, estimated remaining life, and estimated useful life of the capital components as defined in § 55.1-1800;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"7":{"id":232728,"text":"As of the beginning of the fiscal year for which the budget is prepared, the current amount of accumulated cash reserves set aside to repair, replace, or restore capital components and the amount of the expected contribution to the reserve fund for that year;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"8":{"id":232729,"text":"A statement describing the procedures used for estimation and accumulation of cash reserves pursuant to this section; and","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"9":{"id":232730,"text":"A statement of the amount of reserves recommended in the study and the amount of current cash for replacement reserves.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"10":{"id":232731,"text":"The board of directors shall have the discretion to meet repair and replacement requirements through replacement reserves, additional assessments, or borrowed funds.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4"}},"ancestry":[{"id":14602,"edition_id":1,"name":"Operation and Management of Association","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13840,"metadata":{},"date_created":"2026-06-26 03:48:50","date_modified":"2026-06-26 03:48:50","permalink":{"id":246517,"object_type":"structure","relational_id":14602,"identifier":"3","token":"55.1\/IV\/18\/3","url":"\/55.1\/IV\/18\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13840,"edition_id":1,"name":"Property Owners' Association Act","identifier":"18","label":"chapter","depth":3,"order_by":1,"parent_id":12914,"metadata":{},"date_created":"2026-06-26 03:46:02","date_modified":"2026-06-26 03:46:02","permalink":{"id":246475,"object_type":"structure","relational_id":13840,"identifier":"18","token":"55.1\/IV\/18","url":"\/55.1\/IV\/18\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12914,"edition_id":1,"name":"Common Interest Communities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:44:01","date_modified":"2026-06-26 03:44:01","permalink":{"id":246473,"object_type":"structure","relational_id":12914,"identifier":"IV","token":"55.1\/IV","url":"\/55.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":82116,"structure_id":14602,"section_number":"55.1-1815","catch_line":"Access to association records; association meetings; notice","url":"\/55.1-1815\/","token":"55.1\/IV\/18\/3\/55.1-1815","metadata":false},{"id":58953,"structure_id":14602,"section_number":"55.1-1816","catch_line":"Meetings of the board of directors","url":"\/55.1-1816\/","token":"55.1\/IV\/18\/3\/55.1-1816","metadata":false},{"id":71423,"structure_id":14602,"section_number":"55.1-1817","catch_line":"Distribution of information by members","url":"\/55.1-1817\/","token":"55.1\/IV\/18\/3\/55.1-1817","metadata":false},{"id":74786,"structure_id":14602,"section_number":"55.1-1818","catch_line":"Common areas; notice of pesticide application","url":"\/55.1-1818\/","token":"55.1\/IV\/18\/3\/55.1-1818","metadata":false},{"id":77313,"structure_id":14602,"section_number":"55.1-1819","catch_line":"Adoption and enforcement of rules","url":"\/55.1-1819\/","token":"55.1\/IV\/18\/3\/55.1-1819","metadata":false},{"id":62295,"structure_id":14602,"section_number":"55.1-1819.1","catch_line":"Limitation of smoking in development","url":"\/55.1-1819.1\/","token":"55.1\/IV\/18\/3\/55.1-1819.1","metadata":false},{"id":77241,"structure_id":14602,"section_number":"55.1-1820","catch_line":"Display of the flag of the United States; 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late fees","url":"\/55.1-1824\/","token":"55.1\/IV\/18\/3\/55.1-1824","metadata":false},{"id":69838,"structure_id":14602,"section_number":"55.1-1825","catch_line":"Authority to levy additional assessments; authority to borrow","url":"\/55.1-1825\/","token":"55.1\/IV\/18\/3\/55.1-1825","metadata":false},{"id":63899,"structure_id":14602,"section_number":"55.1-1826","catch_line":"Annual budget; reserve study; reserves for capital components","url":"\/55.1-1826\/","token":"55.1\/IV\/18\/3\/55.1-1826","metadata":false},{"id":68443,"structure_id":14602,"section_number":"55.1-1827","catch_line":"Deposit of funds; fidelity bond","url":"\/55.1-1827\/","token":"55.1\/IV\/18\/3\/55.1-1827","metadata":false},{"id":72141,"structure_id":14602,"section_number":"55.1-1828","catch_line":"Compliance with declaration","url":"\/55.1-1828\/","token":"55.1\/IV\/18\/3\/55.1-1828","metadata":false},{"id":58609,"structure_id":14602,"section_number":"55.1-1829","catch_line":"Amendment to declaration and bylaws; consent of mortgagee","url":"\/55.1-1829\/","token":"55.1\/IV\/18\/3\/55.1-1829","metadata":false},{"id":65977,"structure_id":14602,"section_number":"55.1-1830","catch_line":"Validity of declaration; corrective amendments","url":"\/55.1-1830\/","token":"55.1\/IV\/18\/3\/55.1-1830","metadata":false},{"id":62302,"structure_id":14602,"section_number":"55.1-1831","catch_line":"Reformation of declaration; judicial procedure","url":"\/55.1-1831\/","token":"55.1\/IV\/18\/3\/55.1-1831","metadata":false},{"id":66064,"structure_id":14602,"section_number":"55.1-1832","catch_line":"Use of technology","url":"\/55.1-1832\/","token":"55.1\/IV\/18\/3\/55.1-1832","metadata":false},{"id":74192,"structure_id":14602,"section_number":"55.1-1833","catch_line":"Lien for assessments; foreclosure","url":"\/55.1-1833\/","token":"55.1\/IV\/18\/3\/55.1-1833","metadata":false},{"id":74729,"structure_id":14602,"section_number":"55.1-1834","catch_line":"Notice of sale under deed of trust","url":"\/55.1-1834\/","token":"55.1\/IV\/18\/3\/55.1-1834","metadata":false},{"id":78030,"structure_id":14602,"section_number":"55.1-1835","catch_line":"Annual report by association","url":"\/55.1-1835\/","token":"55.1\/IV\/18\/3\/55.1-1835","metadata":false},{"id":63125,"structure_id":14602,"section_number":"55.1-1836","catch_line":"Condemnation of common area; procedure","url":"\/55.1-1836\/","token":"55.1\/IV\/18\/3\/55.1-1836","metadata":false},{"id":64074,"structure_id":14602,"section_number":"55.1-1837","catch_line":"Termination and duration of certain management contracts","url":"\/55.1-1837\/","token":"55.1\/IV\/18\/3\/55.1-1837","metadata":false}],"previous_section":{"id":69838,"structure_id":14602,"section_number":"55.1-1825","catch_line":"Authority to levy additional assessments; authority to borrow","url":"\/55.1-1825\/","token":"55.1\/IV\/18\/3\/55.1-1825","metadata":false},"next_section":{"id":68443,"structure_id":14602,"section_number":"55.1-1827","catch_line":"Deposit of funds; fidelity bond","url":"\/55.1-1827\/","token":"55.1\/IV\/18\/3\/55.1-1827","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-1826\/","history_text":"

This law was first created in 2002. The record of its establishment is cataloged in chapter 459<\/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 2 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 2019, chapters 33<\/a>, 44<\/a>, and 712<\/a>; in 2024, chapter 324<\/a>.<\/p>","references":false,"refers_to":[{"id":65321,"section_number":"55.1-1800","catch_line":"Definitions","order_by":null,"url":"\/55.1-1800\/"}],"permalink":{"id":246575,"object_type":"law","relational_id":63899,"identifier":"55.1-1826","token":"55.1\/IV\/18\/3\/55.1-1826","url":"\/55.1-1826\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-1826\/","token":"55.1\/IV\/18\/3\/55.1-1826","dublin_core":{"Title":"Annual budget; reserve study; reserves for capital components","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-1826","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Prior to the commencement of the fiscal year, the board of directors<\/span> shall make available to lot owners<\/span> either (i) the annual budget of the association<\/span> or (ii) a summary of such annual budget. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The board of directors<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Conduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace, and restore the capital components<\/span> as defined in § 55.1-1800<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Review the results of that study at least annually to determine if reserves are sufficient; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Make any adjustments to the annual budget and annual assessment the board of directors<\/span> deems necessary to maintain reserves, as appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> To the extent that the reserve study<\/span> conducted in accordance with this section indicates a need to budget for reserves, the association<\/span> budget shall include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The current estimated replacement cost, estimated remaining life, and estimated useful life of the capital components<\/span> as defined in § 55.1-1800<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> As of the beginning of the fiscal year for which the budget is prepared, the current amount of accumulated cash reserves set aside to repair, replace, or restore capital components<\/span> and the amount of the expected contribution to the reserve fund for that year; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A statement describing the procedures used for estimation and accumulation of cash reserves pursuant to this section; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A statement of the amount of reserves recommended in the study and the amount of current cash for replacement reserves. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The board of directors<\/span> shall have the discretion to meet repair and replacement requirements through replacement reserves, additional assessments, or borrowed funds. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nANNUAL BUDGET; RESERVE STUDY; RESERVES FOR CAPITAL COMPONENTS (\u00a7 55.1-1826)\n\nA. Prior to the commencement of the fiscal year, the board of directors shall\nmake available to lot owners either (i) the annual budget of the association or\n(ii) a summary of such annual budget.\n\nB. The board of directors shall:\n\n 1. Conduct at least once every five years a study to determine the necessity\n and amount of reserves required to repair, replace, and restore the capital\n components as defined in § 55.1-1800;\n\n 2. Review the results of that study at least annually to determine if reserves\n are sufficient; and\n\n 3. Make any adjustments to the annual budget and annual assessment the board\n of directors deems necessary to maintain reserves, as appropriate.\n\nC. To the extent that the reserve study conducted in accordance with this\nsection indicates a need to budget for reserves, the association budget shall\ninclude:\n\n 1. The current estimated replacement cost, estimated remaining life, and\n estimated useful life of the capital components as defined in §\n 55.1-1800;\n\n 2. As of the beginning of the fiscal year for which the budget is prepared,\n the current amount of accumulated cash reserves set aside to repair, replace,\n or restore capital components and the amount of the expected contribution to\n the reserve fund for that year;\n\n 3. A statement describing the procedures used for estimation and accumulation\n of cash reserves pursuant to this section; and\n\n 4. A statement of the amount of reserves recommended in the study and the\n amount of current cash for replacement reserves.\n\nD. The board of directors shall have the discretion to meet repair and\nreplacement requirements through replacement reserves, additional assessments,\nor borrowed funds.\n\nHISTORY: 2002, c. 459, \u00a7 55-514.1; 2019, cc. 33, 44, 712; 2024, c. 324.","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}}