September 17, 2020

Washington Condos and HOAs Face Difficult Budget Decisions

It's annual budget season for Washington condominium and homeowners associations, and many of them are dealing with the unfortunate reality of smaller revenues this year and next year. Many owners' accounts have become delinquent, and associations are understandably reluctant to begin collection actions against them right away. As a result, many associations must reduce expenses and/or use reserve funds to pay for some expenses in their next budget. Associations should consider deferring scheduled maintenance and repair projects for a year if possible. They should also evaluate whether they can obtain regular services like property management, accounting, and landscaping at a lower price from a different provider. 

Washington community association boards should keep in mind that they are required to comply with the budget procedures contained in state law as amended in 2018 by WUCIOA. The text of the applicable law can be found in my previous post about that subject.