25. What is a limited expense liability planned community?

In West Virginia a “limited expense liability planned community” is referenced in the governing documents by Covenants that contain a cap on the annual assessment. Currently the cap is $300, but it does not include insurance or optional use fees, such as trash service, etc.

          TIP: the $300 cap as adjusted for July 2022 is $1,110.00

The $300 cap can be adjusted by using the Consumer Price Index and applying the formula in §36B-1-114 of the Act.  Due to the complexity of the formula, we suggest HOAs use a certified public accountant, attorney or similar professional to calculate the adjustment.

§36B-1-203 . Applicability to new common interest communities. — Exception for small and limited expense liability planned communities.

Be alert – understand your governing documents, you may have a specific amount outlined in your governing documents though you may not necessarily be defined as a limited expense liability planned community. Not all governing documents are the same.