November 30, 2014

Washington Court Enforces HOA's Approval Requirement for Assessment Increases

The Washington Court of Appeals issued a published opinion earlier this year that enforced a sixty percent approval requirement for assessment increases contained in a homeowners association's bylaws.  The Court held that the budget ratification process described in the Washington Homeowners' Associations Act (RCW 64.38) is distinct from the assessment imposition process and does not override this type of approval requirement for assessment increases.  In the case of this association, this means that one standard applies when ratifying budgets (owners holding more than forty-nine percent of the voting power must either vote for it or not vote) and another standard applies when assessment increases are proposed (at least sixty percent of the owners present at a meeting must vote for it).