The Limited Effect of a Board's Failure to Comply with Meeting Requirements

As previously discussed on this blog, the state law that governs common interest associations in Washington state requires those associations to comply with numerous requirements relating to meetings. However, it also limits the consequences associated with a board's failure to comply with those requirements. The law first states that actions of a board that do not comply with meeting-related requirements are valid unless set aside by a court. It goes on to state that an action seeking relief for a board's failure to comply with those requirements may not be brought more than 90 days after the minutes of the meeting at which the action was taken are approved or the record of that action is distributed to unit owners, whichever is later.

Legislature Approves New Law Regarding Owner Inquiries and Responses

The Washington State Legislature recently approved a new law regarding inquiries from owners in common interest communities and associations' responses to such inquiries. The full text of the new law is as follows:  

"(1) When a unit owner or the unit owner's authorized agent files a written inquiry by certified mail with the Association regarding one or more topics related to either Association governance or operations, or both, the Association must respond, in the form of a record, to the unit owner or the unit owner's authorized agent within 30 days after receipt of the inquiry. The Association must either give a substantive response to the inquirer or notify the inquirer that additional time is reasonably necessary to respond, such as when a legal opinion or other third-party professional opinion has been requested. For the purposes of this Section, a “substantive response” includes, but is not limited to, a factual explanation, reference to governing documents, statement of current Association practices, or other responsive information reasonably available to the Association. The  Association is not required to obtain a legal opinion or other third-party professional opinion in order to provide a substantive response unless reasonably necessary to address the inquiry.

(2) In any action or proceeding arising out of an inquiry subject to this Section including, but not limited to, any litigation, mediation, arbitration, or administrative proceedings, the prevailing party is entitled to recover its reasonable attorneys' fees and costs.

(3) The Association may adopt reasonable rules and regulations regarding the frequency and manner of responding to inquiries, one of which may be that the Association is only obligated to respond to one written inquiry per unit in any 30-day period. In such a case, the Association must respond to any additional inquiry or inquiries in the subsequent 30-day period, or periods, as applicable. Nothing in this Section precludes a unit owner from asking more than one question as part of a single inquiry."

This new law takes effect on June 11. If your association's board of directors has any questions about it, then it should consider contacting my office.

WUCIOA Permits Governing Documents to Vary Some Provisions

RCW 64.90 ("WUCIOA") is a comprehensive law that will apply to all Washington community associations on January 1, 2028. Associations' governing documents may not vary most of WUCIOA, but there are exceptions to that rule. RCW 64.90.015 below contains the following list of those exceptions: 

(a) RCW 64.90.020(1), concerning classification of a cooperative unit as real estate or personal property;

(b) RCW 64.90.030 (2) and (3), concerning reallocation of allocated interests and allocation of proceeds after a taking by eminent domain;

(c) RCW 64.90.360(4), 64.90.370, and 64.90.100, concerning elections regarding applicability of this chapter;

(d) RCW 64.90.100 (1), (2), and (3), concerning communities restricted to nonresidential uses;

(e) RCW 64.90.200(3) (a) and (b), concerning the timing of the conveyance of common elements to the association, and the vesting of real estate owned by the association on termination;

(f) RCW 64.90.210, concerning boundaries between units and common elements;

(g) RCW 64.90.240 (2) and (3), concerning reallocation of limited common elements;

(h) RCW 64.90.245(11), concerning horizontal boundaries of units;

(i) RCW 64.90.255, concerning alterations of units and common elements made by unit owners;

(j) RCW 64.90.260 (1) and (2), concerning relocation of boundaries between units;

(k) RCW 64.90.265 (1) and (2), concerning subdivision and combination of units;

(l) RCW 64.90.275, concerning sales offices, management offices, models, and signs maintained by a declarant;

(m) RCW 64.90.280 (1) and (3), concerning easements through, and rights to use, common elements;

(n) RCW 64.90.285 (1) and (8), concerning the percentage of votes and consents required to amend the declaration;

(o) RCW 64.90.290 (1) and (8), concerning the percentage of votes required to terminate a common interest community and priority of creditors of a cooperative;

(p) RCW 64.90.360(4)(a), concerning small communities;

(q) RCW 64.90.405 (4)(c) and (5)(c), concerning an association's assignment of rights to future income, the number of votes required to reject a proposal to borrow funds, and the right to terminate a lease or evict a tenant;

(r) RCW 64.90.410 (1) and (2), concerning the board acting on behalf of the association and the election of officers by the board;

(s) RCW 64.90.420(2), concerning costs of audits;

(t) RCW 64.90.435(1)(b), concerning election of officers by unit owners;

(u) RCW 64.90.440 (1) and (4), concerning responsibility for maintenance, repair, and replacement of units and common elements and treatment of income or proceeds from real estate subject to development rights;

(v) RCW 64.90.445 (1)(b) and (2)(i), concerning meetings;

(w) RCW 64.90.450, concerning quorum requirements for meetings;

(x) RCW 64.90.455 (3), (4), (5), and (8), concerning unit owner voting;

(y) RCW 64.90.465 (1), (2), and (7), concerning the percentage of votes required to convey or encumber common elements and the effect of conveyance or encumbrance of common elements;

(z) RCW 64.90.470 (2) and (11), concerning insurance where the units are attached, and insurance for a nonresidential common interest community;

(aa) RCW 64.90.475(2), concerning payment of surplus funds of the association;

(bb) RCW 64.90.485 (7) and (20), concerning priority and foreclosure of liens held by two or more associations;

(cc) RCW 64.90.505 (1) and (3), concerning the adoption of rules;

(dd) RCW 64.90.513(8), concerning responsibility for electric vehicle charging stations;

(ee) RCW 64.90.520(4), concerning the board's ability to remove an officer elected by the board;

(ff) RCW 64.90.525(1), concerning the percentage of votes required to reject a budget;

(gg) RCW 64.90.545(2), concerning applicability of reserve study requirements to certain types of common interest communities; and

(hh) RCW 64.90.580(7), concerning responsibility for heat pumps.

An Overview of Recent WUCIOA Revisions and Expansion

Several sections of RCW 64.90 ("WUCIOA") will become applicable to all common interest communities in Washington state on January 1, 2026. The full list of WUCIOA sections that will apply to all such communities on that date is:

(a) RCW 64.90.370 (election of preexisting communities) 

(b) RCW 64.90.405(1) (b) and (c) (association powers);

(c) RCW 64.90.445 (meetings);

(d) RCW 64.90.480(10) (assessments and capital contributions);

(e) RCW 64.90.502 (emergency);

(f) RCW 64.90.513 (electric vehicle charging stations);

(g) RCW 64.90.525 (budgets);

(h) RCW 64.90.545 (reserve studies);

(i) RCW 64.90.580 (heat pumps); and

(j) RCW 64.90.010 (definitions relating to above sections).

There have been a number of other revisions and additions to other sections of WUCIOA this year. Association boards should consider seeking legal advice regarding WUCIOA compliance in 2026 and beyond. The most important recent changes are:

1) Board meetings must begin with an owner comment period that is at least 15 minutes long. Owners may be limited to 90 seconds and further limited if more than 10 owners want to speak.

2) Meetings may be held via telephone, video, or electronic conference.

3) Meetings only require 7 days notice via electronic communication during emergencies.

4) Owners are entitled to review materials provided to Board members.

5) Meeting notice and recordkeeping requirements are further revised to promote transparency.

6) Decisions of committees to which the Board has delegated important authority must be approved by the Board as well.

7) Election ballots must include a space for write-in candidates.

8) Certain votes must be conducted via secret ballot, including elections, board member removals, and amendments. The results of those ballots must be recorded in the minutes. Persons may not access or count ballots in which they have an interest.

9) Associations must provide resale certificates in connection with sales of units.

10) Associations must offer a free assessment payment method.

11) Associations may not invest more than 50% of the reserve funds.

12) Associations must disclose more information about reserve studies, investments, and financial reports to owners.

13) Board approval may not be required for an owner to install an electric vehicle charging station unless it affects a common element or connects to shared electrical infrastructure.

14) Boards may not unreasonably withhold approval for installing heat pump systems in common areas.

15) Plat and miscellaneous communities containing 50 or fewer units with an annual average assessment of $1,000 or less are only subject to a few sections of WUCIOA.

New WUCIOA Meeting Requirements for Community Associations on January 1

The meeting requirements contained in WUCIOA (RCW 64.90.445) will apply to all community associations in Washington state on January 1. I have included the full text of the relevant statute below and highlighted certain sections of particular importance. If your association has questions about any of the provisions below, then it should consider seeking guidance from an attorney with experience in this area. 

(1) The following requirements apply to unit owner meetings:

(a) A meeting of the association must be held at least once each year. Failure to hold an annual meeting does not cause a forfeiture or give cause for dissolution of the association and does not affect otherwise valid association acts.

(b)(i) An association must hold a special meeting of unit owners to address any matter affecting the common interest community or the association if its president, a majority of the board, or unit owners having at least 20 percent, or any lower percentage specified in the organizational documents, of the votes in the association request that the secretary call the meeting.

(ii) If the association does not provide notice to unit owners of a special meeting within 30 days after the requisite number or percentage of unit owners request the secretary to do so, the requesting members may directly provide notice to all the unit owners of the meeting. The unit owners may discuss at a special meeting a matter not described in the notice under (c) of this subsection but may not take action on the matter without the consent of all unit owners.

(c) An association must provide notice to unit owners of the time, date, and place of each annual and special unit owners meeting not less than 14 days and not more than 50 days before the meeting date. Notice may be by any means described in RCW 64.90.515. The notice of any meeting must state the time, date, and place of the meeting and the items on the agenda, including:

(i) The text of any proposed amendment to the declaration or organizational documents; and

(ii) Any proposal to remove a board member or, if the declaration or organizational documents provide for the election of officers by the unit owners, any proposal to remove an officer.

(d) Unit owners must be given a reasonable opportunity at any meeting to comment regarding any matter affecting the common interest community or the association.

(e) A meeting of unit owners is not required to be held at a physical location if the meeting is conducted in accordance with subsection (3) of this section.

(f) In the notice for a meeting held at a physical location, the board may notify all unit owners that they may participate remotely in the meeting by a means of communication described in subsection (3) of this section.

(2) The following requirements apply to meetings of the board and committees authorized to act for the board:

(a) Meetings must be open to the unit owners except during executive sessions, but the board may expel or prohibit attendance by any person who, after warning by the chair of the meeting, disrupts the meeting. The board and those committees may hold an executive session only during a regular or special meeting of the board or a committee. A final vote or action may not be taken during an executive session.

(b) An executive session may be held only to:

(i) Consult with the association's attorney concerning legal matters;

(ii) Discuss existing or potential litigation or mediation, arbitration, or administrative proceedings;

(iii) Discuss labor or personnel matters;

(iv) Discuss contracts, leases, and other commercial transactions to purchase or provide goods or services currently being negotiated, including the review of bids or proposals, if premature general knowledge of those matters would place the association at a disadvantage; or

(v) Prevent public knowledge of the matter to be discussed if the board or committee determines that public knowledge would violate the privacy of any person.

(c) For purposes of this subsection, a gathering of members of the board or committees at which the board or committee members do not conduct association business is not a meeting of the board or committee. Board members and committee members may not use incidental or social gatherings to evade the open meeting requirements of this subsection.

(d) During the period of declarant control, the board must meet at least four times a year. At least one of those meetings must be held at the common interest community or at a place convenient to the community. After the transition meeting, unless the organizational documents provide otherwise, and except as otherwise provided in subsection (3) of this section, all board meetings must be at the common interest community or at a place convenient to the common interest community.

(e) At each board meeting, the board must provide a reasonable opportunity for unit owners to comment regarding matters affecting the common interest community and the association. The board must provide at least 15 minutes at the beginning of each meeting for unit owners to comment about agenda items before the board votes. The board may place reasonable time restrictions of not less than 90 seconds per owner per unit, except that the time per owner per unit may be reduced and allocated equally if more than 10 unit owners wish to comment.

(f) Unless the meeting is included in a schedule given to the unit owners, the secretary or other officer specified in the organizational documents must provide notice of each board meeting to each board member and to the unit owners. The notice must be given at least 14 days before the meeting and must state the time, date, place, and agenda of the meeting. Notwithstanding the foregoing, notice of a meeting to address an event or condition that could not have been reasonably foreseen and for which it is impracticable to provide notice as otherwise required by this chapter must be given at least seven days before the meeting and by means of electronic communication to unit owners whose electronic address or phone number is known to the association.

(g) If any materials are distributed to the board before the meeting, the board must make copies of those materials reasonably available to the unit owners, except that the board need not make available copies of unapproved minutes or materials that are to be considered in executive session.

(h) Notwithstanding the governing documents, fewer than all board members may participate in a regular or special meeting by or conduct a meeting through the use of any means of communication by which all board members participating can hear each other during the meeting. A board member participating in a meeting by these means is deemed to be present in person at the meeting.

(i) Prior to the transition meeting, without a meeting, the board may act by unanimous consent as documented in a record by all its members. Actions taken by unanimous consent must be kept as a record of the association with the meeting minutes. After the transition meeting, the board may act by unanimous consent only to undertake ministerial actions, actions subject to ratification by the unit owners, or to implement actions previously taken at a meeting of the board.

(j) A board member who is present at a board meeting at which any action is taken is presumed to have assented to the action taken unless the board member's dissent or abstention to such action is lodged with the person acting as the secretary of the meeting before adjournment of the meeting or provided in a record to the secretary of the association immediately after adjournment of the meeting. The right to dissent or abstain does not apply to a board member who voted in favor of such action at the meeting.

(k) A board member may not vote by proxy or absentee ballot.

(l) Even if an action by the board is not in compliance with this section, it is valid unless set aside by a court. An action seeking relief for failure of the board to comply with this section may not be brought more than 90 days after the minutes of the board of the meeting at which the action was taken are approved or the record of that action is distributed to unit owners, whichever is later.

(3) Notwithstanding the governing documents, any meeting may be held by telephonic, video, or other conferencing process if:

(a) The meeting notice states the conferencing process to be used and provides information explaining how to participate in the conference;

(b) The process provides all participants the opportunity to hear or perceive the discussion and to comment as provided in subsection (2)(e) of this section;

(c) Any votes of the board members are conducted by roll call or other verbal vote; and

(d) Any person entitled to participate in the meeting is given the option of participating by telephone.

(4) Minutes of all unit owner meetings and board meetings, excluding executive sessions, must be maintained in a record. The decision on each matter voted upon at a board meeting or unit owner meeting must be recorded in the minutes.

Beneficial Owner Information Report Requirement Remains on Hold

A federal law named the Corporate Transparency Act was recently ruled to be applicable to incorporated community associations. This ruling imposes new reporting obligations on those associations and their directors.

 

Incorporated community association boards must file a Beneficial Owner Information (BOI) report with the U.S. Treasury by January 13, 2025. The BOI report requires certain information to be disclosed about property owners who have substantial ownership or management interests in the association, including the current members of its board of directors. Each director must first obtain what is called a FinCEN number. A designated director must then complete a BOI Report listing the name of the association, its tax ID number, and the FinCEN numbers of its current directors. Associations are required to update their BOI Report within 30 days the date that they appoint a new director or a director resigns.

Incorporated community associations should consult the FinCEN guidelines, their accountants, and their legal counsel if they have questions about this new reporting requirement. 

UPDATE: As of January 24, 2025, an injunction remains in place against the above statute, so associations are not required to file BOI reports for the time being.  

New Law Limits Community Associations' Authority to Deny Heat Pump Applications

A new state law concerning heat pumps took effect last month. Community associations in Washington state may not effectively prohibit or unreasonably restrict owners from installing heat pumps in compliance with the new law's requirements. However, those associations may impose reasonable restrictions on heat pump installations and require owners to submit applications for approval of such installations. The term "reasonable restriction" means a restriction that does not significantly increase the cost of a heat pump or signifiantly decrease its efficiency or specified performance. If community associations require owners to submit heat pump applications, then they must approve each proposed installation if it is reasonably possible and the owner agrees in writing to (a) comply with the association's reasonable architectural standards applicable to the installation, b) engage an HVAC contractor familiar with the standards for the installation of heat pumps to assess the existing infastructure necessary to support the proposed heat pump, identify additional infastructure needs, and install the heat pump, and c) comply with the requirements of the new law.

Community associations must process and approve heat pump applications in the same manner as architectural modification applications. If heat pump applications are not denied in writing within sixty days from the date of receipt, then they are deemed approved unless that delay is the result of a reasonable request for additional information. Associations may not charge fees relating to heat pump installations except for reasonable application processing fees that apply to architectural modification applications.           

WUCIOA Will Apply to All Washington State Community Associations in 2028

Several laws relating to Washington condominium and homeowners asociations were recently approved. The most important of them states that the Washington State Common Interest Ownership Act ("WUCIOA") will automatically apply to all such community associations beginning on January 1, 2028. This comprehensive law contains many new provisions governing associations' internal affairs. You can review the full law here. 

Association boards should consider consulting with a qualified attorney to learn about their legal obligations under WUCIOA. They should also consider amending their associations' governing documents to bring them into accordance with WUCIOA.

Two New Washington State Laws Are Designed to Increase Housing Density

The Washington State Legislature recently approved two new laws designed to increase housing density. Both laws will go into effect on July 23, 2023. The first law requires cities with over 25,000 people to allow at least duplexes in all areas and cities with more than 75,000 people to allow at least fourplexes in all areas. Community associations whose governing documents contain more restrictive housing provisions as of that date are exempt from those requirements, but they are prohibited from amending their governing documents to prohibit duplexes and other kinds of middle housing after that date. The second law states in part that the governing documents of community associations created after that date that are within an urban growth area may not impose any restriction or prohibition on the construction, development, or use on a lot of an accessory dwelling unit that the city or county where that area is located would be prohibited from imposing under that law. Those prohibited impositions are described in the new law as follows: 

(a) The city or county may not assess impact fees on the construction of accessory dwelling units that are greater than 50 percent of the impact fees that would be imposed on the principal unit;

(b) The city or county may not require the owner of a lot on which there is an accessory dwelling unit to reside in or occupy the accessory dwelling unit or another housing unit on the same lot;

(c) The city or county must allow at least two accessory dwelling units on all lots that are located in all zoning districts within an urban growth area that allow for single-family homes in the following configurations:

(i) One attached accessory dwelling unit and one detached accessory dwelling unit;

(ii) Two attached accessory dwelling units; or

(iii) Two detached accessory dwelling units, which may be comprised of either one or two detached structures;

(d) The city or county must permit accessory dwelling units in structures detached from the principal unit;

(e) The city or county must allow an accessory dwelling unit on any lot that meets the minimum lot size required for the principal unit;

(f) The city or county may not establish a maximum gross floor area requirement for accessory dwelling units that is less than 1,000 square feet;

(g) The city or county may not establish roof height limits on an accessory dwelling unit of less than 24 feet, unless the height limitation that applies to the principal unit is less than 24 feet, in which case a city or county may not impose roof height limitation on accessory dwelling units that is less than the height limitation that applies to the principal unit;

(h) A city or county may not impose setback requirements, yard coverage limits, tree retention mandates, restrictions on entry door locations, aesthetic requirements, or requirements for design review for accessory dwelling units that are more restrictive than those for principal units;

(i) A city or county must allow detached accessory dwelling units to be sited at a lot line if the lot line abuts a public alley, unless the city or county routinely plows snow on the public alley;

(j) A city or county must allow accessory dwelling units to be converted from existing structures, including but not limited to detached garages, even if they violate current code requirements for setbacks or lot coverage;

(k) A city or county may not prohibit the sale or other conveyance of a condominium unit independently of a principal unit solely on the grounds that the condominium unit was originally built as an accessory dwelling unit; and

(l) A city or county may not require public street improvements as a condition of permitting accessory dwelling units.

(2)(a) A city or county subject to the requirements of this section may not:

(i) Require off-street parking as a condition of permitting development of accessory dwelling units within one-half mile walking distance of a major transit stop;

(ii) Require more than one off-street parking space per unit as a condition of permitting development of accessory dwelling units on lots smaller than 6,000 square feet before any zero lot line subdivisions or lot splits; and

(iii) Require more than two off-street parking spaces per unit as a condition of permitting development of accessory dwelling units on lots greater than 6,000 square feet before any zero lot line subdivisions or lot splits.

(3) When regulating accessory dwelling units, cities and counties may impose a limit of two accessory dwelling units, in addition to the principal unit, on a residential lot of 2,000 square feet or less.

New Laws Apply to Washington State Community Associations

The Washington State Legislature recently approved several new laws that affect existing community associations. The first new law prohibits community associations from prohibiting, unreasonably restricting, or limiting the use of properties for licensed family home child care or as licensed child daycare centers. An association may require properties being used in that manner to: 1) provide direct customer access from the outside of the buildings or through publicly accessible common areas, 2) be licensed by the state, 3) indemnify the association against all claims related to that use except for claims that arise in common elements that the association is solely responsible for maintaining under the governing documents, 4) obtain daycare insurance or provide self-insurance, and 5) provide the association with signed waivers from the guardians of each child being cared for that release them from legal claims related to that use. An association may impose reasonable rules pertaining to family home child care and licensed child daycare centers, but those rules must apply equally to all other association members. This law took effect on May 1, 2023.

The second new law permits community associations to require owners who lease their properties to use a tenant screening service or obtain background information, including criminal history, pertaining to their prospective tenants at the owners’ sole cost and expense before executing leases and to require proof that this has been done. However, associations may not require that tenant screening reports or any background information pertaining to tenants be furnished to them. This law takes effect on July 23, 2023. 

The third new law requires community associations to keep and maintain the following records: 1) the current budget, detailed records of receipts and expenditures affecting the operation and administration of the association, and other appropriate accounting records within the last seven years, 2) minutes of all meetings of its owners and board other than executive sessions, a record of all actions taken by its owners or board without a meeting, and a record of all actions taken by a committee in place of the board on behalf of the association, 3) the names of current owners, addresses used by the association to communicate with them, and the number of votes allocated to each property, 4) its organizational and governing documents, including all amendments, 5) all financial statements and tax returns of the association for the past seven years, 6) a list of the names and addresses of its current board members and officers, 7) its most recent annual report delivered to the Secretary of State, if any, 8) copies of contracts to which it is or was a party within the last seven years, 9) materials relied upon by the board or any committee to approve or deny any requests for design or architectural approval for a period of seven years after the decision is made, 10) materials relied upon by the board or any committee concerning a decision to enforce the governing documents for a period of seven years after the decision is made, 11) copies of insurance policies under which the association is a named insured, 12) any current warranties provided to the association, 13) copies of all notices provided to the owners or the association in accordance with state law or the governing documents, and 14) ballots, proxies, absentee ballots, and other records related to voting by owners for one year after the election, action, or vote to which they relate.

Community associations’ records must generally be made available for examination and copying by all owners, holders of mortgages on the properties, and their respective authorized agents during reasonable business hours or at a mutually convenient time and location and at the offices of the association or its managing agent. However, records retained by associations must have the following information redacted or otherwise removed prior to disclosure: 1) personnel and medical records relating to specific individuals, 2) contracts, leases, and other commercial transactions to purchase or provide goods or services currently being negotiated, 3) existing or potential litigation or mediation, arbitration, or administrative proceedings, 4) existing or potential matters involving federal, state, or local administrative or other formal proceedings before a governmental tribunal for enforcement of the governing documents, 5) legal advice or communications that are otherwise protected by the attorney-client privilege or the attorney work product doctrine, including communications with the managing agent or other agent of the association, 6) information the disclosure of which would violate a court order or law, 7) records of an executive session of the board, 8) individual property files other than those of the requesting owner, 9) unlisted telephone number or electronic address of any owner or resident, 10) security access information provided to the association for emergency purposes, and 11) agreements that for good cause prohibit disclosure to the owners. Prior to disclosure of the list of owners, an association must also redact or otherwise remove the address of any owner or resident who is known to the association to be a participant in an address confidentiality program.

Community associations may charge a reasonable fee for producing and providing copies of any records and for supervising an owner's inspection of records, but an owner is entitled to receive a free annual electronic or paper copy of the list of owners from the association. The right to copy records includes the right to receive copies by photocopying or other means, including through an electronic transmission, if available, upon request by an owner. Associations are not obligated to compile or synthesize information for an owner who requests to review or receive records. This law takes effect on July 23, 2023.

The fourth new law imposes additional requirements on community associations related to the collection of past due assessments. Associations must mail a specified pre-foreclosure notice to delinquent owners along with the first notice of delinquency for past due assessments and the same notice again before beginning a foreclosure action against those owners’ properties. The second notice may not be mailed sooner than sixty days after the first notice is mailed. Associations may not begin foreclosure actions against delinquent owners’ properties unless they owe a sum greater than: 1) three months or more of assessments, not including fines, late charges, interest, attorneys' fees, or costs incurred by the association in connection with the collection of the delinquent owner's account, or 2) $2,000 of assessments, not including fines, late charges, interest, attorneys' fees, or costs incurred by the association in connection with the collection of a delinquent owner's account. This law takes effect on July 23, 2023.

The laws that apply to community associations grow more numerous and complex every year. It has unfortunately become virtually impossible for associations to comply with all of those laws without legal guidance. Community association boards should strongly consider consulting with an attorney who specializes in this area on a periodic basis.

Many Community Association Directors Are Not Permitted to Vote by Proxy

Directors of condominium and homeowners associations may sometimes want to vote by proxy rather than attend a board meeting. However, Washington state law does not permit many of them to do so. First, the Washington Uniform Common Interest Ownership Act ("WUCIOA") prohibits directors of communities that were created on or after July 1, 2018 or that have amended their governing documents to apply that law's provisions from voting by proxy. Second, the Washington Nonprofit Corporation Act as restated in 2021 prohibits directors of nonprofit corporations (as many condominium and homeowners associations are organized) from using a proxy to count toward quorum or to vote. As a result, only directors of communities that are both not governed by WUCIOA and not nonprofit corporations may vote by proxy.

It is often difficult for boards to understand what laws apply to their communities. If your board is unclear about that issue or wants to confirm its legal status, then it should consider contacting my office. 

Washington State Approves Law Regarding Electric Vehicle Charging Stations

A new law in Washington state concerns electric vehicle charging stations. It prohibits community associations from adopting or enforcing provisions in their governing documents that effectively prohibit or unreasonably restrict the installation or use of an electric vehicle charging station in compliance with the new law's requirements for the personal noncommercial use of a unit owner within the boundaries of a unit or in a designated parking space. The new law also includes a number of other requirements and procedures pertaining to those stations.

The new law requires community associations to generally promote, encourage, and remove obstacles to the installation and use of electric vehicle charging stations. However, it also permits community associations to impose reasonable restrictions on those stations. For example, community associations may require a unit owner to submit an application for approval for the installation of an electric vehicle charging station in the same manner as an application for approval of an architectural modification.

The new law concerning electric vehicle charging stations will take effect on June 9. 2022. Washington state community associations should consider contacting an attorney regarding its contents and application.

New Washington Nonprofit Corporation Act Took Effect on January 1

A new comprehensive law governing Washington nonprofit corporations took effect on January 1. Condominium and homeowners associations located in Washington state that are organized as nonprofit corporations are required to comply with that new law except to the extent that the other statutes applicable to them take precedence over it. The most important portion of that new law from their perspective pertains to records retention and production.   

The new law contains an extensive list of records that must be kept, including governing documents (articles of incorporation, covenants, bylaws, and rules), minutes of all meetings of the members and of the board, all records produced by committees, records of all actions taken by unanimous consent, all communications with members that are in the form of a record for the past six years, a list of the names and addresses of the directors and officers, the most recent annual report, appropriate accounting records, and a record of all members that contains their names and addresses and the number of votes that each of them possesses.

The new law establishes that all members of a nonprofit corporation have the right to review its records. A member who wishes to do so must deliver an executed notice describing in detail the records that they want to review to the corporation at least five days before the date on which the member or their agent seeks to review the records. The member must be acting in good faith and for a proper purpose, and the requested records must relate directly to that purpose. Certain records may be withheld by the corporation, including attorney-client or work product records, confidential addresses, records that would cause harm to the corporation if they were disclosed (such as disciplinary proceedings) and records required to be kept confidential by law or an agreement with a third party. 

The new law permits nonprofit corporations to provide records to members in either a tangible form or an electronic form. If records are provided in a tangible form, then corporations are permitted to charge reasonable fees that do not exceed the cost of reproduction.    

The entire new law can be reviewed here. 

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.

Governor's COVID Proclamation Concerning Community Associations Expires on July 24

Governor Inslee's COVID Proclamation pertaining to Washington state community associations expires at 11:59 p.m. on July 24.  Community associations will regain the ability to charge late fees and interest if an owner's account is delinquent at that time. The Proclamation's provisions permitting community associations to notify owners, meet, and vote by electronic methods will also expire on that date, but a new state law permitting associations to act in that manner will take effect on July 25.      

COVID Proclamation Affecting Community Associations Extended Indefinitely

The Governor of Washington state issued a Proclamation yesterday that permits owners and directors in condominium and homeowners associations to continue to vote by mail, electronic transmission, and proxy and to attend meetings by conference telephone and similar electronic services until the termination of the COVID-19 state of emergency or the rescinding of the Proclamation, whichever occurs first.  This Proclamation also extends a previous prohibition on condominium and homeowners associations charging late fees for delinquent assessments until the termination of the COVID-19 state of emergency or the rescinding of the Proclamation, whichever occurs first.

COVID-19 Proclamation Governing WA Community Associations Is Amended

Governor Inslee amended a COVID-19 emergency proclamation pertaining to Washington community associations today. This proclamation restores associations' power to levy fines against owners who violate the association's governing documents. This power to fine was suspended by a previous proclamation. Owners must be given notice and an opportunity to be heard before fines are levied.   

The Governor's proclamation amendment extends a previous proclamation permitting owners and directors to vote on association matters by mail, electronic mail, and proxy and to attend association meetings by conference telephone and similar electronic services until 11:59 p.m. on October 1.  It also extends a prohibition on community associations charging late fees for delinquent assessments until that date.

Washington Legislature Approves New Law Regarding Low-Water Landscaping

The Washington Legislature recently approved a new law regulating the ability of community associations and their governing documents to restrict low-water landscaping practices.  The law first states that an association's governing documents may not prohibit the installation of drought resistant landscaping or wildfire ignition resistant landscaping.  It next states that an association's governing documents may include reasonable rules regarding the placement and aesthetic appearance of such landscaping as long as those rules do not render the use of such landscaping unreasonably costly or otherwise effectively infeasible.  The new law finally states that an association may not sanction or impose a fine or assessment against an owner or resident for reducing or eliminating the watering of vegetation or lawns for the duration of a drought condition order issued by the department of ecology that is applicable to the property.  This new law takes effect on June 11, 2020.

New Law Regulates Abandoned, Mid-Foreclosure, and Nuisance Properties

The Washington Legislature approved a new law earlier this year regulating residential properties that are abandoned, mid-foreclosure, or nuisances.  The new law authorizes counties, cities, and towns to take possession of such properties and abate nuisances associated with them if mortgage holders fail to do so after being notified. If Washington community associations encounter problems from abandoned, mid-foreclosure, or nuisance properties, then they can now ask their counties, cities, and towns to address those problems pursuant to this new law.  

Washington State HOAs Must Comply With New Law Regarding Meeting Minutes

Only one piece of state legislation directly affecting Washington state community associations became law in 2014.  This new law amends RCW 64.38, which is the state law that governs homeowners associations.  The new law adds the following language to RCW 64.38.035(1): 
    
"The association must make available to each owner of record for examination and copying minutes from the previous association meeting not more than sixty days after the meeting.  Minutes of the previous association meeting must be approved at the next association meeting in accordance with the association's governing documents."

The new law will take effect on June 12, 2014.  Washington state homeowners associations should make their meeting minutes available and approve them in accordance with the new law's requirements from that date forward.  

The new law does not relate to or bind Washington state condominium associations.