Why was this law passed?
The Washington State Legislature introduced this requirement to ensure that homeowners are not penalized financially just for fulfilling their basic legal obligation to pay assessments. Previously, many associations moved entirely to third-party online portals that charged “service fees” for every transaction, leaving owners with no way to pay the exact amount listed in their budget without an upcharge.
How the “Fee-Free” Option Works
The law gives flexibility to the Board of Directors to decide which payment method will be free, but at least one must be available. Here are the most common ways associations are complying:
– The Check-by-Mail Method: This is the most common free option. While owners are responsible for the cost of a stamp and envelope, the association (or its management company) cannot charge a fee to process the physical check.
– The “Bill Pay” Option: If your association accepts paper checks, you can use your personal bank’s “Online Bill Pay” feature. Your bank prints and mails a check to the association on your behalf for free. Because it arrives as a physical check, it must be treated as a fee-free payment.
– Direct ACH (Auto-Draft): Many associations offer a “Direct Debit” service where funds are automatically pulled from your bank account. Because this is the most reliable way for the association to receive funds, they often absorb the small administrative cost to keep it free for the owner.
– On-Site Drop Box: For self-managed communities, a secure physical drop box for checks is a valid fee-free option.
What Fees are Still Allowed?
Associations are not required to make every payment method free. They can still pass on third-party costs for “premium” services, such as:
– Credit Cards: Usually involve a 2.5% to 3% processing fee.
– Debit Cards: Often carry a flat “convenience fee” (e.g., $5.00–$10.00).
– Phone Payments: Fees for using a live representative to process a payment.
The Bottom Line
If your association uses a portal that charges you even $1.00 or $2.00 for a standard e-check/ACH transfer, and offers no other way to pay without that fee, they are likely out of compliance with state law. This change is part of a larger “phase-in” of WUCIOA laws designed to make association living more transparent and fair for all Washington residents.
