There are states with adequate condominium acts; Arizona and Florida come to mind. Virginia isn't one. If you live in or own a condominium, what may be your largest investment is vulnerable to one of the most egregious yet legal Ponzi schemes. Associations should fund a replacement reserve to provide the capital for substantial renovations required over the life of the property. Roofs, parking lots, pools and a variety of costly capital assets predictably deteriorate. Virginia requires an engineering study to project these future expenses. It suggests but it neither requires associations to adequately fund a replacement reserve nor sets a standard to measure adequacy. Quite typical of the consumer protection environment in this state: always beware.