Question:
Our HOA has a large surplus and does not spend any of it except for a few snow plowings a year. It came up at our last meeting that an HOA law stipulates that if the majority of the homeowners vote in the affirmative we can return all or part of our treasury money to the homeowners in a manner agreed to by the group. Is that possible?
– Donnelle
Answer:
Section 36B-3-114 of the West Virginia Uniform Common Interest Ownership Act has this to say about surplus funds:
“Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves must be paid to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.”
As such, the surplus funds may be returned to the homeowners or used to offset future assessments. That said, make sure to check your governing documents to see if there are contrary provisions.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
