The proposed Mountain Homes Act aims to enhance housing development in West Virginia by establishing the Mountain Homes Fund, which will be managed by the Department of Economic Development. This fund will be sourced from surplus funds, gifts, and grants, and will provide loan guarantees to eligible applicants who are licensed in West Virginia, current on tax obligations, and demonstrate creditworthiness. Projects must meet specific criteria, including a minimum appraised value and the inclusion of at least six residential units. The Act also outlines the administration of the fund, including record-keeping and reporting requirements, and allows the Department to create rules for implementation. The Act is set to take effect on January 1, 2026, with a sunset provision that will expire it on January 1, 2036, unless ongoing projects are still in progress.

Additionally, the bill mandates that developers ensure completed housing units are sold within a price range of $150,000 to $300,000 by July 1, 2025, with adjustments based on average salary changes. Developers must comply with local government criteria, including utility hookups and stormwater management, and establish a binding Homeowners Association (HOA) for maintenance of common areas. The application process for construction loan guarantees will be evaluated by the Department based on project descriptions, financial status, and local compliance, with a cap of $10 million on total project costs per fiscal year. The Secretary of the Department of Economic Development will have final authority on application approvals, and penalties will be imposed for false statements in applications to ensure integrity in the funding process.

Statutes affected:
Introduced Version: 5B-2P-1, 5B-2P-2, 5B-2P-3, 5B-2P-4, 5B-2P-5, 5B-2P-6, 5B-2P-7, 5B-2P-8, 5B-2P-9, 5B-2P-10, 5B-2P-11, 5B-2P-12, 5B-2P-13