source:
  type: guide
  id: va-m26-7-ch16-t07
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 7 — Non-exclusive
    easement,(continued)
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 7 — Non-exclusive
    easement,(continued).
  coverage_tier: operative
obligations:
- id: va-m26-7-ch16-t07-full
  canonical_id: va-m26-7-ch16-t07-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 7 — Non-exclusive
    easement,(continued)
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16, Topic 7 — Non-exclusive
      easement,(continued)
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: fa6bc474102677f3
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
    paragraph_quote: '7. Non-exclusive easement,(continued) d. Right of the association,
      acting through the board of directors, without member, mortgagee and agency
      approvals unless provided otherwise in the declaration, to adopt regulations
      governing the use of common areas and the personal conduct of owners, occupants
      and guests thereon; e. Right of the association, acting through the board of
      directors, without member, mortgagee and agency approvals unless otherwise provided
      in the declaration, to charge reasonable admission or other fees for special
      or extraordinary uses of the common areas; f. Right of the association, acting
      through the board of directors, without member, mortgagee or agency approvals
      unless otherwise provided in the declaration, and consistent with existing local
      jurisdiction’s zoning and subdivision ordinances, to transfer part of the common
      areas for the purpose of adjusting lot lines in accordance with reasonably stated
      provisions (i.e., does not reduce total open space area below zoning requirements,
      does not materially affect development plan on file with an agency, and all
      units previously adjacent to common areas - remain so located, unless the owners
      of the units approve the boundary line adjustment); g. Right of the board of
      directors without member, mortgagee or agency approvals unless otherwise provided
      in the declaration, to suspend the right of any member, and the rights of such
      member''s household, tenants, guests and invitees to use recreational facilities
      or other common areas (to the extent that access and utility service are not
      impaired) for a period not to exceed 60 days, unless such rights are suspended
      for failure to pay assessments, in which case such rights may be suspended until
      the assessments are fully paid; or h. Special declarant rights reserved by the
      declarant, (i) such as: right to use portions of the common areas for sales
      and marketing purposes; (ii) reservation of easements across the common areas
      for development purposes; (iii) right to grant, terminate or vacate easements
      across common areas for limited purposes such as installation and maintenance
      of utilities, storm water management or provision of services to units. 8. Contains
      provisions for maintaining the common areas. If the association maintains areas
      it does not own (such as within a public right-of way for landscaping or signage
      or storm water management), the attorney must provide an explanation which describes
      the arrangement and discusses the rationale. Continued on next page January
      1, 2001 16-B-17 16-B-18 January 1, 2001 VA Pamphlet 26-7, Revised Section B:
      Use of Attorney’s Opinion Exhibit A: Other VA Requirements, Continued (A) Declaration
      (continued) 9. Contains provisions for the adoption of an annual operating budget
      and imposition and collection of assessments to meet the expenses of the association.
      The board of directors has the power on behalf of the association to levy both
      annual and additional assessments. a. Units of a similar nature, receiving similar
      services, are assessed on a uniform basis except for the reduced assessment
      permitted for unoccupied units owned by the declarant or a builder. If a different
      basis is used which allocates assessment liability among unit based on different
      services provided to the units or the different nature of the units, the rationale
      for that basis must be fully explained. b. If the declarant furnishes a multi-year
      feasibility budget, the declarant and/or a builder may pay a reduced annual
      assessment on unoccupied lots only provided that such reduced assessment is
      not less than 25% of the full annual assessment. Alternatively, the declarant
      or builder may pay a one-time assessment equal to 25 percent of the applicable
      annual assessment per lot based upon the first year budget at maximum build-out
      (or 5 years out for projects involving 250 or more lots/units). The lots for
      which the one-time assessment has been paid may be exempt from further assessment
      until the earlier of: (i) initial occupancy or (ii) two fiscal years after submission
      to the declaration. If unoccupied units are receiving the benefit of the reduced
      or one-time assessment, the documents provide that the declarant, or builder(s)
      as appropriate, must provide for or pay for all maintenance to such units and
      shall fund all operating budget deficits incurred during the declarant control
      period, including reserves based upon expected lives of items for which reserved,
      but not including shortfalls caused by nonpayment of assessments by other members
      or extraordinary expenditures (e.g., expenses caused by natural catastrophes
      or environmental hazards). A unit initially occupied or conveyed to a unit owner
      other than the declarant or a builder is fully assessed. The obligation to fund
      budget deficits is a lien against all the land owned by the declarant (or the
      declarant and builders) in the planned unit development. Continued on next page
      January 1, 2001 16-B-18 January 1, 2001 16-B-19 VA Pamphlet 26-7, Revised Section
      B: Use of Attorney’s Opinion Exhibit A: Other VA Requirements, Continued (A)
      Declaration (continued) 10. If a maximum annual assessment is stated, the maximum
      may increase automatically by the greater of ten percent or based upon a Consumer
      Price Index, such as the U.S. Department of Urban Price Index - All Urban Consumers
      (1982-84=100) or other comparable index reflecting the association’s cost increase
      experience each year. The maximum may also be increased by a majority vote of
      the members obligated to pay such assessment or with the written approval of
      members entitled to cast a majority of the total number of authorized votes
      of members obligated to pay such assessment (in both cases excluding the declarant
      during the declarant control period). Increases in certain fixed costs for insurance,
      taxes, recycling or waste disposal may be passed through to the members, by
      permitting an automatic increase in the maximum assessment which reflects those
      increases. If no maximum assessment is set forth, a vote of the members must
      be required to approve capital expenditures, other than for repair and replacement,
      during a fiscal year of more than 20 percent of the budget for common expenses
      for that fiscal year. 11. Contains provisions for a lien-supported assessment.
      The assessment lien of any assessment levied by the association is subordinate
      to the lien of a first mortgage (Title 38, USC, section 3703(d)(3)). Subordination
      to other security interests or liens is acceptable if permitted by applicable
      law. The sale or transfer of any unit pursuant to mortgage foreclosure of a
      first mortgage or any proceeding in lieu thereof extinguishes the lien of such
      assessments as to payments which became due prior to such sale or transfer.
      No sale or transfer relieves such unit from liability for any assessments thereafter
      becoming due or from the lien thereof. (NOTE: VA will not recognize any limited
      priority that common expense assessments may have over the first mortgage lien.
      Mortgage holders should be aware that no VA claim payment will be made to holders
      for any payments they may have made to clear prior liens for delinquent and
      unpaid association assessments). Continued on next page January 1, 2001 16-B-19
      16-B-20 January 1, 2001 VA Pamphlet 26-7, Revised Section B: Use of Attorney’s
      Opinion Exhibit A: Other VA Requirements, Continued (A) Declaration (continued)
      12. Contains provisions for collection of assessments. The interest rate permitted
      to be charged by the association is uniform, reasonable and non-usurious. The
      method of determining the interest rate is set forth. A rate not to exceed that
      charged by the Internal Revenue Service on delinquent taxes is considered reasonable.
      The association has the power both to foreclose the association''s lien and
      to bring a legal action against the member personally obligated to pay the assessment.
      The documents may provide that a successor in title is entitled to obtain an
      association disclosure statement or estoppel certificate with respect to common
      expense assessments, in which case an owner''s personal obligation to pay assessments
      is assumed by successors in title unless the successor in title acquired title
      through foreclosure, or any proceeding in lieu thereof, of a first mortgage.
      (NOTE: Units which will be subject to a VA-guaranteed loan will not be subject
      to delinquent assessments in excess of 6 months in any case in which the association
      has not brought enforcement action against the current unit owner.) 13. Contains
      provisions for enforcement of the association documents. If owners are held
      liable for costs and expenses incurred by the association as a result of acts
      or omissions of such owner or such owner’s tenants, agents, employees, invitees,
      guests and household members in failing to comply with the association documents
      or rules or regulations of the association, regardless of negligence or culpability,
      then the Public Offering Statement and or Information Brochure must describe
      this matter. 14. Contains provisions requiring appropriate types of insurance.
      The board of directors, on behalf of the association, has the authority to and
      is required to obtain coverages in the areas of property damage, liability,
      and personnel. Owners may be required to maintain certain types of insurance
      coverages and, if the owner fails to purchase that insurance, the board may
      obtain those coverages at the owner’s expense. All hazard and flood insurance
      policies which include any units, must also have the standard mortgagee clause
      and provide for notice to the mortgagee at least ten days before lapse, material
      modification or cancellation of the policy. 15. Contains provisions for reconstruction
      of the common areas after condemnation or casualty loss. Continued on next page
      January 1, 2001 16-B-20 January 1, 2001 16-B-21 VA Pamphlet 26-7, Revised Section
      B: Use of Attorney’s Opinion Exhibit A: Other VA Requirements, Continued (A)
      Declaration (continued) 16. Contains provisions governing parking, if parking
      is not included within each unit. If vehicular parking is on the common areas:
      (i) the association documents must: (a) permanently assign a parking space on
      the common area to each unit; (b) assign a specific parking area to a specific
      group of units or (c) make other provisions assuring parking in compliance with
      local ordinances; or (ii) the declarant must provide other evidence of parking
      in compliance with local ordinances. 17. Contains provisions guaranteeing mortgagees
      (may be limited to eligible mortgagees, as defined below) and agencies notice
      of amendments. During the declarant control period: (i) the declarant must provide
      a copy of all amendments to VA; and (ii) the association may not make any material
      amendments or take any extraordinary actions as described in subparagraph 6
      above without the approval of VA. The declaration may provide that certain rights
      and protections (including notice and approval rights) are granted to only those
      mortgagees who have provided notice to the board of directors of their interest
      and requested all rights under the association documents “eligible mortgagees.”
      Rights granted to eligible mortgagees should include the following: a. Right
      to inspect association documents and records on the same terms as the members;
      b. Notice of all material amendments to the association documents; c. Notice
      of any extraordinary actions of the association; d. Notice of any property loss,
      condemnation or eminent domain proceeding affecting the common areas resulting
      in losses greater than 10 percent of the annual budget or any unit insured by
      the association in which the mortgagee has an interest; e. Notice of any termination,
      lapse or material modification of an insurance policy held by the association;
      f. Notice of any default by an owner of a unit subject to a mortgage held by
      the eligible mortgagee in paying assessments or charges to the association which
      remains uncured for sixty consecutive days; Continued on next page January 1,
      2001 16-B-21 16-B-22 January 1, 2001 VA Pamphlet 26-7, Revised Section B: Use
      of Attorney’s Opinion Exhibit A: Other VA Requirements, Continued (A) Declaration
      (continued)'
  judgment: false
