HD6 - Residential Planned Community Development Study
Executive Summary: The 1986 General Assembly adopted House Joint Resolution 122 to study the need for regulation of residential planned community developments. The Resolution was introduced by Delegates V. Earl Dickinson, Kenneth R. Plum and George P. Beard and Senator R. Edward Houck; and directs the Secretary of Economic Development to study the need for the regulation of sales and management of residential planned communities. The Virginia Board of Commerce conducted the study on behalf of the Secretary. This report is the result of that study. A special three-member committee composed of members of the Board of Commerce was designated by the Board to work with Department of Commerce staff. Two public hearings were conducted on June 30 and July 1, 1986. These two hearings, one in Richmond and one in Arlington, were designed to elicit public comment so that the specific problems which gave impetus to the introduction of Resolution 122 might be identified. The hearing conducted in Richmond was the better-attended of the two hearings. Approximately fifty persons were in attendance and fourteen persons spoke. In contrast, approximately fifteen persons attended the Arlington hearing and four persons spoke. Lot owners, association management and developers were represented at both hearings. In addition to oral testimony at the hearings, written comments were provided to the Board of Commerce by twenty-five persons. Testimony at the hearings revealed the reasons which prompted the study. Lot owners in residential planned communities expressed concern about the manner in which these developments are organized and operated. Problems cited by lot owners include the maintenance of common areas, formulation of and adherence to an association budget, and conduct of association meetings. Community management and developer representatives concurred in identification of these problems. Disagreement exists, however, in defining the appropriate manner in which these problems should be resolved. House Joint Resolution 122 clearly establishes the scope for review of the issues prevalent in residential planned communities. The Resolution suggests that sales and management of such communities should be examined as well as enforcement of deed and covenant restrictions through internal quasi-courts systems and the applicability of tax laws. This review is based upon and should therefore include comparison of the residential planned community to similar forms of property development which are presently regulated under Virginia law. The report of the Board of Commerce addresses each of the specific problems identified in the public hearings and the specific areas of concern identified in the resolution and is based upon a more extensive research document prepared by Department of Commerce staff. In addition to discussing the background problems and application of existing laws, the Board of Commerce in this report outlines alternatives for appropriate action to resolve these problems. |
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