Virginia • Special assessment notice
Special assessment from your Virginia HOA — and were your reserves ever actually funded?
Virginia looks well-regulated — a mandatory reserve study, a strong resale certificate — but there's a gap at the center: the study is required, the funding isn't. That gap is where most Virginia special assessments come from.
The short answer
Virginia requires a reserve study every 5 years but lets the board meet obligations through reserves, additional assessments, OR borrowing (§ 55.1-1965) — so thin reserves plus a special assessment is legal and common. The resale certificate must disclose approved specials and binds the association. CondoSignal reads your notice against Title 55.1. Free.Virginia at a glance
Reserve study
Every 5 years
Required (§ 55.1-1965).
Reserve funding
Discretionary
Board can use reserves, assessments, or borrowing.
Resale cancel
3 days (oft 7)
Cancel anytime if never delivered (§ 55.1-2312).
Super-lien
None
Lien is junior to the first mortgage.
The study-without-funding gap
Virginia mandates a reserve study every five years with annual review (§ 55.1-1965 condos, § 55.1-1826 POAs), but the statute lets the board satisfy its repair obligations through 'replacement reserves, additional assessments, or borrowed funds.' So a board can lawfully keep reserves thin (say 30% funded) and plan to special-assess later — making the recommended-versus-actual reserve number the single most useful figure you can check.
Board authority, no cap
The board may impose an additional (special) assessment (§ 55.1-1964), with any threshold set by the governing documents and no statutory cap. Approved special assessments and capital expenditures for the current and next fiscal year must be disclosed in the resale certificate — and that certificate has binding effect (§ 55.1-2313), so the association can't later claim a hidden assessment.
The resale certificate is your protection
Virginia's consolidated resale certificate must state the reserve study/balance, approved assessments, six months of minutes, insurance, and the owner's share of the master deductible. You get three days to cancel after receiving it (often extended to seven by the standard contract), and if it's never delivered you can cancel any time before closing. Read it for the reserve gap and any approved special.
Your rights in Virginia
Virginia owners are entitled to a binding resale certificate disclosing approved special assessments, the reserve study/balance, and the owner deductible, plus a cancellation right (§ 55.1-2312/-2313). None of this is legal advice — confirm against Title 55.1 and Virginia counsel.
What to check
- Compare the reserve study's recommended funding to the actual balance.
- Read the resale certificate for any approved special assessment.
- Check the governing documents for any assessment threshold.
- Confirm the owner's share of the master deductible (now disclosed).
- For Hampton Roads, confirm master flood coverage.
- Use your cancellation window if the certificate is late or missing.
Sources
- Va. Code § 55.1-1965 — reserve study(High)
- Va. Resale Disclosure Act (§§ 55.1-2307 to -2317)(High)
- Va. Code § 55.1-1966 — condo lien & foreclosure(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Virginia-licensed professional.
FAQ
Frequently asked questions
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