July 29, 2021

Washington State Common Interest Communities Are Subject to New Laws

The law governing Washington state common interest communities has changed a great deal over the last several months. The Washington Legislature and Governor recently approved three new laws affecting such communities. The Governor rescinded his virus-related proclamation concerning those communities earlier this month. Eviction restrictions have been extended in some places and allowed to expire in others. 

The first new law affecting common interest communities pertains to notices, meetings, and voting.  It permits those communities to notify owners of meetings and other matters by electronic transmission with their prior consent. It allows those communities to meet remotely if they adopt a resolution or approve a governing document amendment providing for such meetings.  The new law also permits owners in those communities to vote by proxy, mail, and electronic transmission. 

The second new law concerns foreclosure actions. It requires those communities to mail a new notice to delinquent owners before filing foreclosure actions.  Those communities are also prohibited from commencing foreclosure actions against delinquent owners until they owe at least nine months of assessments (six months of assessments starting January 1, 2024).

The third new law is a restatement of the Washington Nonprofit Corporations Act.  With minor exceptions, this law does not take effect until January 1, 2022.  Communities organized as nonprofit corporations will soon be required to comply with different procedures with regard to matters such as record retention and meeting minutes.

Governor Inslee's virus-related proclamation expired on July 24.  Common interest communities may now charge late fees and interest when an owner's account is delinquent. The proclamation's provisions relating to notices, meetings, and voting were largely incorporated and expanded in the first new law discussed above.

The federal eviction moratorium is currently scheduled to expire on July 31.  The Seattle eviction moratorium is currently scheduled to expire on September 30, but it may be extended. Other counties and cities have different eviction standards. Communities should seek legal advice before starting eviction actions or terminating utilities.

This is only a general overview of these changes. My office is available to help your community fully understand and comply with its current legal obligations.