                                 CODE OF VIRGINIA

ALLOCATION OF OWNERSHIP INTERESTS, VOTES, AND COMMON EXPENSE LIABILITIES (§
55.1-2118)

A. The declaration shall allocate an ownership interest in the association a
fraction or percentage of the common expenses of the association and a portion
of the votes in the association, or to each cooperative interest in the
cooperative, and state the formulas used to establish those allocations. Those
allocations shall not discriminate in favor of cooperative interests owned by
the declarant or an affiliate of the declarant.

B. If units may be added to or withdrawn from the cooperative, the declaration
shall state the formulas to be used to reallocate the allocated interests among
all cooperative interests included in the cooperative after the addition or
withdrawal.

C. The declaration may provide (i) that different allocations of votes shall be
made to the cooperative interests on particular matters specified in the
declaration, (ii) for cumulative voting only for the purpose of electing members
of the executive board, and (iii) for class voting on specified issues affecting
the class if necessary to protect valid interests of the class. No declarant
shall utilize cumulative or class voting for the purpose of evading any
limitation imposed on declarants by this chapter, nor shall cooperative
interests constitute a class because they are owned by a declarant.

D. Except for minor variations due to rounding, the sum of the common expense
liabilities allocated at any time to all the cooperative interests must equal
one if stated as a fraction or 100 percent if stated as a percentage. In the
event of a discrepancy between an allocated interest and the result derived from
application of the pertinent formula, the allocated interest prevails.

E. Any purported conveyance, encumbrance, judicial sale, or other voluntary or
involuntary transfer of the ownership interest in the association made without
the possessory interest in the unit to which that interest is related is void.

HISTORY: 1982, c. 277, § 55-444; 2019, c. 712.