condominium For the past 6 years we have seen greater price inflation than the past 40 years. More important for associations the cost of major projects such as paint and roofing have grown 10% to 40% outpacing inflation significantly. Previously many associations were limited in what they could increase dues by their CC&Rs. However since 2018 under Washington State’s WUCIOA Section 326, a condominium or homeowners associations (Association) can generally raise dues beyond the limits specified in the CC&Rs.

The statute provides a process for the associations to propose a budget and accompanying dues. 1: If a majority of owners (or a larger number specified in the declaration) do not reject the budget, it is approved. 2: This effectively allows the association to override any restrictions on dues increases outlined in the CC&Rs. 2

However, it’s important to note:

Reasonableness: While the associations has the power to increase dues, the increases must still be reasonable and necessary for the operation of the community. Excessive or unjustified increases could lead to legal challenges.
Specific Circumstances: There might be specific circumstances or provisions within your association CC&Rs that could affect this general rule. It’s always advisable to consult with an attorney who specializes in COA/HOA law for guidance tailored to your situation.

Key Points:

– Owner Approval: The ability to raise dues beyond the CC&Rs limit is subject to budget approval.
– Budget Process: The associations board must propose a budget with the increased dues, and it’s up to homeowners to vote on the budget.
– CC&R Restrictions: While the CC&Rs might set a limit, this limit is not absolute and can be overridden through the budget approval process.

In conclusion, WUCIOA Section 326 grants associations significant flexibility in determining dues, but it’s essential to balance the association’s needs with the rights of homeowners. It’s important to note that this is a general overview and not a legal opinion. Every association CC&Rs have there own nuances or exceptions. If you have concerns about how WUCIOA Section 326 affects your associations dues or the budget process, it’s advisable to consult with an attorney who specializes in COA/ HOA law in Washington State.

Information above was sourced from www.condolaw.net and from https://app.leg.wa.gov/RCW/default.aspx?cite=64.90.525