VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 17 — Provisions guaranteeing mortgagees (continued)

VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 17 — Provisions guaranteeing mortgagees (continued)

17. Provisions guaranteeing mortgagees (continued) g. Notice of any proposal to terminate the declaration or dissolve the association at least 30 days before any action is taken; h. Right of a majority of the eligible mortgagees to demand professional management; and i. Right of a majority of the eligible mortgagees to demand an audit of the association's financial records. 18. Contains provisions for party walls, if a townhouse planned community. The association documents or law of the jurisdiction must provide for the maintenance, repair and reconstruction of party walls and allocate the costs among the owners served by a party wall. 19. Contains provisions for expansion or annexation in a phased development. The declaration must, in addition to submitting at least 1 phase to the covenants and restrictions: (i) describe the additional land proposed to be submitted in the future in a sufficient manner to locate the property; (ii) grant the declarant the right to submit the described additional land; (iii) describe the method of submitting additional land; d describe the basis of voting rights and assessment obligations of units added in relation to the voting rights and assessment obligations of units already subject to the declaration or provide that such rights for future phases will be the same as for phases already submitted; and establish a reasonable time limit for submitting additional land. A reasonable time limit will depend on the size of the development, but generally annexation made within the later of 7 years after recordation of the Declaration or 5 years after the most recent recordation of an annexation document is considered reasonable. The additional land must be contiguous, adjacent or across a public right- of-way. If the additional land is not so located, there must be a clear statement of that fact and a discussion of the rationale for its potential inclusion. The declaration may reserve the right to the declarant to submit a limited amount of undescribed adjacent additional land, increasing the total size of the planned community by up to 10 percent both in land size and number of additional units, or such undescribed additional land may be added by the association with a majority vote of the members at a duly held meeting at which a quorum is present or the written consent of members entitled to cast a majority of the total number of votes, in both cases excluding the votes of the declarant during the declarant control period.

Source: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 17 — Provisions guaranteeing mortgagees (continued) · source URL · snapshot fa6bc474102677f3