DOCUMENTS

GOVERNING DOCUMENTS. Does the Board have complete and accurate copies of all governing documents? Record anything that is not recorded, if appropriate.

CHANGES TO DOCUMENTS. Were there amendments to the Declaration, Bylaws or Articles of Incorporation? Did the Board resolve to amend its Rules or Architectural Guidelines?

RULES. Review the condition of Association rules. Is there an enforcement policy that conforms with §55-513 of the Property Owner's Association Act or  55-79.80:2 of the Condominium Act? Has that policy been adopted by the Board of Directors and distributed to the Members?

SHALL v. MAY. Review the governing documents to identify what the Association and the Board must do. Does the Association's practice fit with the documents? If not, change the practice or amend the documents.

CORPORATE:

BOARD MINUTES AND RESOLUTIONS: Are minutes prepared for each meeting?
Are Board actions being recorded, and where appropriate, communicated to the owners?

ANNUAL REGISTRATION/REGISTERED AGENT. Confirm annual fee has been paid and registration is current. Identify current Board members and officers. Confirm that the registered agent and registered address are still effective.  If not, change them with the State Corporation Commission.
www.scc.virginia.gov

PROPERTY:

CONDITIONS. Evaluate the condition of the property the Association maintains. Any long-term or recurring problems? Does the Association anticipate major repairs? How will they be financed?

VIOLATIONS. Evaluate the status of architectural violations. How does the Association respond?

FINANCIAL:

BANK ACCOUNTS. Who are the signers on the Association's accounts? Are there current signature cards on file with the Association's bank?

BUDGET. Does the Association's budget process comply with its governing documents?

RESERVES. Update the replacement reserve schedules. A reserve study is required every five years. Condominium Act (§ 55-79.83:1); Property Owners' Association Act (§ 55-514.1).

COLLECTIONS/DELINQUENCIES. What is the annual delinquency rate? Is there a clear, effective Collections Policy that complies with the Association's governing documents?

SAVINGS. Evaluate the Association's savings program and investment plans. Time for a change?

LIENS/LOANS. Is the Association paying off a loan? Are there any liens against the areas – e.g. mechanics liens, deed of trust, judgment liens? What is the nature/status of these?

AUDIT. Has the Association budgeted for and scheduled an annual audit? What is required by the governing documents?

DISCLOSURE:

DISCLOSURE PACKAGE. Virginia requires that every Association furnish a potential purchaser with the Association's governing documents – for a POA, a Disclosure Certificate, and for a condominium, a Resale Certificate. Review a recent disclosure package and examine the materials that are included. Are they accurate? Complete?

LAWSUITS. Review any lawsuit in which the Association is involved. (Don't overlook those handled by insurance.) What is the nature and status of each suit? Make sure they are reported in Disclosure Notice/Resale Certificates.

CONTRACTS:

CONTRACT TERMS: Are there copies of all contracts in the Association's file? Calendar the expiration dates for all the Association contracts, and calendar the termination notice dates. When does the management contract renew?

INSURANCE: Evaluate the Association's insurance and bonds – types and amounts. Is the Association bonding the people who handle the Associations' funds? Does the Association have duty-to-defend D&O coverage?

LAW CHANGES: Invite the Association's attorney to meet with the Board to discuss changes in the law affecting the Association.