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

Due to developer/declarant privilege to exempt certain HOAs from all but 3 sections  (1-105, 1-106 and 1-107) of 36B, that exemption (1-203) causes great 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 and NO statutory requirement to fund reserves in West Virginia.

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