Burkholder v. Palisades Park Owners Association, Inc.
Arlington · VA · Court of Appeals of Virginia
Member win · architectural
What happened
Karey Burkholder and Douglas Thompson challenged Palisades Park Owners Association's practice of paying for inspections of every member's lot (including architectural-guideline checks) from annual assessments. Arlington County Circuit Court struck their evidence and awarded the association roughly $67,482 in fees. The Court of Appeals of Virginia reversed: under then-effective Va. Code § 55.1-1805, assessments could not fund those lot-compliance inspections without express declaration authority or a fee for common-area-related services; Palisades' declaration lacked that authorization. Judgment and the association's fee award were reversed; the homeowners were entitled to reasonable attorney fees and costs under § 55.1-1828. Virginia amended assessment-authority statutes in 2024 after this opinion.
What the court (or agency) held
Under then-effective Va. Code § 55.1-1805, an association could not fund lot-compliance inspections (including architectural-guideline checks of private lots) through assessments unless the declaration expressly authorized that charge or the fee was for services related to common-area use. Palisades' declaration lacked that express authorization, so using assessments for those inspections was unlawful. Judgment for the association and its ~$67,482 fee award were reversed; the homeowners prevailed and were entitled to reasonable attorney fees and costs under § 55.1-1828. Note: Virginia amended assessment-authority statutes in 2024 after this opinion—check current Code before relying on the assessment holding.
Why this matters for members
Assessment uses must track the declaration and then-applicable statute. Funding private-lot compliance patrols from general assessments without express authority led to reversal and owner fee recovery—subject to later statutory change.
What the member did
Sued to enjoin assessment-funded lot-compliance inspections and appealed the strike and fee award under the POA Act.
Questions for the board
- Does our declaration expressly authorize assessment-funded lot-compliance inspections?
- Which inspection costs are common-area services versus private-lot enforcement?
- Have we checked post-2024 Virginia amendments affecting assessment authority?
Questions for a lawyer
- Under the statute in force for our period, were these inspection assessments authorized?
- How do 2024 Code amendments affect forward-looking advice?
- What fee-shifting rights apply if inspection assessments were ultra vires?
Citation
Burkholder v. Palisades Park Owners Association, Inc., 76 Va. App. 577, 882 S.E.2d 906; Record No. 0187-22-4 (2023) (2023-02-07). Court of Appeals of Virginia. Outcome chip: member_win. Flags: statute-changed. Source: https://www.vacourts.gov/opinions/opncavwp/0187224.pdf
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.