W. Va. Code R. § 42-19-15

Current through Register Vol. XLI, No. 45, November 8, 2024

Section 42-19-15 - State Manufactured Housing Recovery Fund

15.1. The Board shall collect the following annual assessment fee in satisfaction of each licensed manufacturer's, dealer's, distributor's, or contractor's required assurance of financial responsibility:

15.1.1. $2,500 for each manufacturer's licensed business location;

15.1.2. $1,000 for each dealer's and/or distributor's licensed business location; and

15.1.3. $500 for each licensed contractor.

These assessments shall be collected annually at the time of the filing of all initial and renewal license applications: Provided, That if the balance of the Recovery Fund on June 30 of any year equals or exceeds $300,000, then no assessments shall be collected from any previously licensed manufacturer, dealer, distributor, or contractor for the next licensure period. New applicants for licensure shall pay the applicable assessment fee regardless of the balance of the Recovery Fund.

15.2. The Board is authorized at any time to make special assessments upon all licensed manufacturers, dealers, distributors, and contractors if the Board determines that the assessments are necessary to maintain the fiscal integrity of the Recovery Fund. In no event may a special assessment be issued by the Board until or unless the balance of the Recovery Fund falls below $250,000.

15.3. Payments by the Board from the Recovery Fund.

15.3.1. The Board may make payment from the Recovery Fund for any of the reasons authorized by W. Va. Code § 21-9-10(d), after the responsible licensee has been afforded an opportunity to be heard on a Notice of Violation issued, and has failed to correct the violations as directed by the Board.

15.3.2. When a licensee fails to make repairs to a manufactured home as directed by the Board, or as agreed between the licensee and the Board or Division, the Board may determine the fair market value of the cost of obtaining those repairs and contract with a third-party licensee to effect those repairs.

15.3.3. Payments from the Recovery Fund shall be made if:

15.3.3.a. The Recovery Fund balance is sufficient to pay the amount directed;

15.3.3.b. The aggrieved consumer has assigned to the Board all rights and claims relating to the repairs that he or she has against the licensee; and

15.3.3.c. The aggrieved consumer has agreed to subrogate the Board to all of his or her rights to the extent of the payment amount directed.

15.4. Payments from the Recovery Fund are limited to a per manufactured home maximum of:

15.4.1. $10,000 for any one violation by any one licensed manufacturer, dealer, distributor, or contractor;

15.4.2. $12,500 for any series of violations by any one licensed contractor;

15.4.3. $25,000 for any series of violations by any one licensed dealer and/or distributor; and

15.4.4. $75,000 for any series of violations by any one licensed manufacturer.

15.5. Payments from the Recovery Fund are limited to actual expenses incurred, as determined by the Board. The Recovery Fund may not be used to pay for any incidental expenses of the aggrieved consumer, including claims for personal injuries, claims for property damage other than to the home itself, inconvenience, alternate housing, attorney's fees, punitive or exemplary damages, or other legal or court costs.

15.6. The decisions to determine expenses incurred, repairs to be made, the fair market value of the cost of repairs, whether to contract for repairs, and whether to make any payment from the Recovery Fund lie within the sole discretion of the Board.

15.7. Licensee civilly liable to the Board for reimbursement of payments from the Recovery Fund.

15.7.1. When the Board authorizes payment from the Recovery Fund, the responsible licensee is civilly liable to the Board for any amount paid from the Recovery Fund, plus interest calculated at the amount of legal interest as established by the West Virginia Supreme Court of Appeals from the date the Board's payment was made. The Board may immediately suspend or revoke the license of the manufacturer, dealer, distributor, or contractor without further proceedings until full reimbursement to the Recovery Fund is made.

15.7.2. Any person that maintains a substantial ownership interest (5% or more) in any licensed manufacturer, dealer, distributor, or contractor that has failed to provide for full reimbursement to the Recovery Fund is disqualified from maintaining any substantial ownership interest in any other licensed manufacturer, dealer, distributor, or contractor. The Board may deny any application for licensure or renewal, where it appears that a person owns 5% or more of the applicant until full reimbursement is made to the Recovery Fund.

15.8. Nothing in this rule shall be construed to limit or restrict in any manner other civil or criminal remedies available under the law to any person.

15.9. The Board may not waive the Recovery Fund requirements of the Act and this rule.

W. Va. Code R. § 42-19-15