As used in this chapter:

"Community" or "Common interest community" means real estate described in a declaration with respect to which a person, by virtue of a person’s ownership of a unit, is obligated to pay for a share of real estate taxes, insurance premiums, maintenance, or improvement of, or services or other expenses related to, common elements, other units, or other real estate described in the declaration.

"Declaration" or "declaration of covenants" means a recorded instrument in the nature of covenants running with the land that subjects the land composing the community to the jurisdiction and control of an association in which the owners of the parcels, or their association members, must be members.

"Land Use Association" or "LUA" means a West Virginia legal entity responsible for the operation of a community in which the voting membership is made up of parcel owners or their agents, or a combination thereof, and in which membership is a mandatory condition of parcel ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the parcel. The term "land use association" includes homeowners’ associations, unit owners’ associations as defined §36B-1-1 et seq. of this code, and condominium and unit property councils as defined in §36A-1-1 et seq. of this code.

"Parcel" means a platted or unplatted lot, tract, unit, or other subdivision of real property within a community, as described in the declaration and to which the following apply:

(1) Is capable of separate conveyance; and

(2) The parcel owner is obligated:

(A) By the governing documents to be a member of an association that serves the community; and

(B) To pay to the association assessments that, if not paid, may result in a lien on the parcel.

"Preceding year" means the period from and including January 1 through December 31 of the year prior to the date of registration by an LUA.

§31K-1-3. Construction of chapter.

(a) The existence of a provision of this chapter does not of itself create an implication that a contrary or different rule of law applies to an entity organized pursuant to the provisions of this code that is not a land use association. This chapter does not affect a statute or rule of law that applies to an entity that is not a land use association.

(b) The specific provisions of this chapter control over the general provisions of other chapters of this code.

§31K-1-4. Land use association liability.

Notwithstanding any provision of code to the contrary, and specifically notwithstanding the provisions of §36B-3-113 of this code, Land Use Associations or LUAs shall maintain liability insurance with minimum limits of $200,000.  Such insurance shall include coverage for losses or occurrences for which members of the LUAs or common interest communities may bring legal suit against the land use association as an entity, its board members, or property managers.  In the event members of the LUAs or common interest communities bring legal suit against the land use association as an entity, its board members, or property managers, any settlement or award of damages shall be satisfied by the insurance required under this section.

§31K-1-5. Creation of West Virginia land use association division.

By no later than July 1, 2027, the Secretary of State's Office shall create a West Virginia Land Use Association Division to regulate and oversee land use associations, their board members, and/or property managers, and to protect the rights of property owners in common interest communities.  

The Legislature intends that the West Virginia Land Use Association Division be authorized to take legal action against registered land use associations or their board members for violations of applicable articles of incorporation, bylaws, rules and regulations, and declaration of covenants, conditions, and restrictions (CC&Rs).  The Legislature further intends that the division be authorized to levy penalties against land use associations and their board members for knowing violations of state and federal law, applicable articles of incorporation, bylaws,  rules and regulations, and declaration of covenants, conditions, and restrictions (CC&Rs).

The West Virginia Land Use Association Division shall create an alternative dispute resolution process for disputes between land use associations, their board members, property managers and property owners.  By no later than December 1, 2027, the Secretary of State's Office and West Virginia Land Use Association Division shall provide a report to the Legislature on the proposed organization and structure of the division and components of the proposed alternative dispute resolution process.  

ARTICLE 2. LEGISLATIVE PURPOSE.

§31K-2-1. Legislative statement of purpose.

The Legislature finds that land use associations significantly affect the rights and values of the real property of a significant number of West Virginians and concludes that requiring registration of those associations in an electronic format and maintaining that information on an accessible database and website will better allow property owners to ascertain relevant information about their associations.

ARTICLE 3. REGISTRATION.

§31K-3-1. Registration with Secretary of State; fee.

§31K-3-2. Content of registration form.

NOTE: The purpose of this bill relates to land use associations; provides a short title; defines terms; establishes construction of chapter; provides statement of purpose; requires liability insurance; creates West Virginia Land Use Association Division; mandates registration of land use associations with Secretary of State; setting fee for registration; and prescribe content of registration form.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.