The Virginia Business Litigation Blog
If your homeowners association has started levying assessments you never agreed to pay, you may have more legal recourse than you think. A recent Virginia Court of Appeals decision demonstrates that not all associations claiming HOA or POA status actually qualify as such under state law. If the association doesn’t legally qualify as an HOA or POA, its assessment powers will be limited by contract law. In Terrace View Property Owner’s Association, Inc. v. Jannah, decided February 3, 2026, the Virginia Court of Appeals sided with homeowners who challenged their association’s authority to collect fees, holding that the association did not qualify as a POA and that the vague language in its governing documents did not create an enforceable financial obligation.
The opinion lays out the following factual background. The Terrace View Subdivision in Forest, Virginia, was developed in 2000. When the subdivision was created, the developer recorded a Declaration of Protective Covenants that authorized (but did not require) the creation of a property owners association. The Declaration gave the developers the right to transfer common areas to Terrace View POA, and stated that the association “shall have the right to establish and collect assessments,” with lot owners deemed to have “agreed to pay same when and as due” by purchasing property in the subdivision.