105. If we are Section 36(b) exempt, does the law require us to have a Capital Property Reserve Fund?

Due to developer/declarant choices to exempt certain HOAs from all but 3 sections  (1-105, 1-106 and 1-107) of 36B-1-203 –  that exemption causes the greatest angst among homeowners and their elected boards to manage the business of their association over 10-20-30 years . TIP: law or no law – HOAs must be sustainable to preserve & increase property values.

Unit owners associations may adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from unit owners. Section 36B‐3‐102. Powers of unit owners’ association.

Public offering statement must include the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement and statement of any other reserves. Section 36B‐4‐103. Public offering statement; general provisions.

There is NO statutory requirement to conduct a reserve study – NO statutory requirement to fund reserves in West Virginia.

Courtesy http://www.complexsolutionsltd.com/pdfs/state-laws.pdf