Heads up, Washington homeowners! That condo collapse in Florida back in 2021 was more than just a tragic news story – it’s sent shockwaves through HOAs and condominium associations nationwide, including right here in Washington State.

Why should you care? Because those ripple effects mean higher fees, bigger headaches, and a fresh look at what it truly costs to own a condo or live in an HOA.

Florida’s Pain, Our Preview

Down in Florida, older condos are now facing a stark reality: new laws demand mandatory structural integrity studies. That means associations must put aside serious cash for repairs. And guess who foots the bill? Condo owners, suddenly on the hook for tens of thousands of dollars.

This isn’t just about structural fixes. Regular HOA fees are soaring, especially in natural disaster hot zones. A Redfin report from August 2024 showed average monthly HOA fees in Tampa jumped an astonishing 17.2% year-over-year.

Washington’s Own Sticker Shock

While we don’t have hurricanes, the underlying problem is the same: aging buildings, deferred maintenance, and skyrocketing costs for materials and labor. In Washington State, we’ve seen annual expenses for HOAs and COAs jump by as much as 30%. This has directly led to local condominium fees increasing by a staggering 30-40% in some cases!

This perfect storm of rising fees, high mortgage rates, and general home prices is putting a chill on the condo market. Units are sitting unsold as buyers face the “unknown” of massive potential costs.

WA State: The Rules You Need to Know

Fortunately, Washington has some proactive measures in place, even if they’re not as strict as Florida’s new mandates. Our Condominium Act (RCW 64.34) and Homeowners’ Associations Act (RCW 64.38) put a big emphasis on reserve studies and keeping those funds healthy.

  • Reserve Studies Are Required: Washington law requires associations to annually update their reserve studies. Plus, an onsite inspection by a reserve professional is mandatory every three years. These studies pinpoint common elements, estimate their lifespan, and project future repair costs, guiding funding.
  • Funding is Encouraged (But Not Always Required): While the law encourages adequate reserves, associations can vote to waive or reduce funding. This is where it gets risky. Underfunded reserves mean bigger, more painful special assessments down the road – exactly what Florida is desperately trying to avoid.

The Bottom Line for WA Homeowners (and Future Buyers)

The lessons from Florida are crystal clear:

  • Costs are Climbing: Expect higher monthly fees and the possibility of significant special assessments as buildings age and repair costs rise.
  • Buyers Beware: If you’re looking to buy a condo or a home in an HOA, especially an older one, be prepared to do your homework. The “unknown” of future assessments can be a major deterrent.
  • Transparency is Your Friend: Always dive deep into an association’s financial health. Look at their reserve fund status, recent reserve studies, and how well they plan for the future. A well-managed, transparent HOA means peace of mind.

It’s Not All Bad News!

Despite the challenges, it’s not all doom and gloom for condo owners in Washington. Over the past five years (roughly 2020-2025), condominium properties in both Skagit and Whatcom counties have seen significant appreciation, likely in the range of 20-40% or even higher! So, while costs are rising, property values have generally been on an upward trend which means increased equity for the owners.