man writing on paper There’s a new law (Senate Bill 5796) that will significantly impact homeowners and condominium associations (HOA) throughout Washington. This bill rewrites the Washington Uniform Common Interest Ownership Act (WUCIOA) almost entirely. Formerly, HOAs follow different rules depending on when they were established. This new law proposes applying a uniform set of rules, the WUCIOA, to almost all homeowners and condominium associations starting in 2028. WUCIOA already applies to communities formed after July 1, 2018, and under SB 5796, it would apply to nearly all others. The only WUCIOA exemption is for associations with fewer than 12 homes/units and dues of less than $300 per year.

One key change involves reserve studies. Now all Condominium and Homeowner Associations  are required to conduct and update reserve studies annually unless they fall into the exempt category listed above. Banks and Insurance companies are also asking for up to date reserve studies regardless of size or dues.

Summary of SB5796

  • This Senate Bill passed on March 28, 2024 and will take effect on June 6, 2024.
    It repeals existing condominium and HOA law in favor of the Washington Uniform Common Interest Ownership Act (WUCIOA).
  • WUCIOA governs “common interest communities” (CICs) and “plat communities” created since July 1, 2018, with some exceptions.
  • SB5796 applies WUCIOA to almost all condominiums, cooperatives, and HOA communities, regardless of when they were formed.

Impact on Associations without a Reserve Study

WUCIOA likely requires associations to have reserve studies. While the specifics are beyond the scope of this conversation, it’s likely these associations will need to:

  • Conduct a reserve study to assess the funding needed for future maintenance and repairs of common areas.
  • Develop a plan to fund these reserves based on the study’s recommendations.

For a more detailed understanding of the impact on your specific association, consulting a lawyer specializing in HOA law is recommended.

Full Text of Bill

Good source for more information on WUCIOA changes