Washington Court Rules that Condominium Leasing Restrictions Require 90% Approval

The Washington Court of Appeals ruled in a published opinion earlier this month that 90% owner approval is necessary to amend the declarations of condominiums created after July 1, 1990 in a manner that restricts owners' ability to lease their units.  The Court based its ruling on a provision in the Washington Condominium Act that requires 90% owner approval for declaration amendments that change "the uses to which any unit is restricted."  Leasing was deemed to constitute a "use" of property.  Interestingly, the Court declined to award the prevailing party its attorney fees "given the debatable issues of law presented in this case."  This decision is now being appealed.

This new ruling regarding leasing restriction approval does not apply to condominiums created on or before July 1, 1990 unless they have amended their declarations to incorporate the amendment standards contained in the Washington Condominium Act.  Furthermore, it does not invalidate declaration amendments restricting leasing rights that received less than 90% owner approval that were recorded more than one year ago by condominiums created after July 1, 1990 due to a statute of limitation contained in the Washington Condominium Act.  However, this new ruling does make declaration amendments restricting leasing rights that received less than 90% owner approval that were recorded less than one year ago by condominiums created after July 1, 1990 vulnerable to legal challenge.

Community association law is constantly being amended and clarified by legislatures and courts.  Attorneys who focus their practices on community associations are in the best position to keep abreast of those developments.  Wise boards seek advice from such attorneys before proposing amendments to their associations' governing documents.

King County Will Present Free Fair Housing Workshops in August and September

The King County Office of Civil Rights will present free fair housing workshops in Seattle on August 19 and September 17. The August workshop will discuss reasonable accommodations and modifications for residents with disabilities.  The September workshops will include an introduction to fair housing laws and a discussion of more advanced problems in this area. These workshops can help condominium and homeowners association boards understand and comply with the obligations imposed on them by those laws.  If you want to learn more, then please visit the Office's website. 

I Will Be a Panelist in a HOALeader.com Special Assessment Webinar on Thursday

HOALeader.com will be presenting a webinar about special assessments on Thursday, June 26, from 11:00 PST to 12:00 PST.  I will be one of the panelists in that webinar.  I look forward to providing insights about how to make the special assessment process as painless as possible and how to avoid it altogether if possible.  If you want to register for or learn more about this webinar, then please go to HOALeader.com's website.

California City Drops Nuisance Lawsuit Against Makers of Sriracha Hot Sauce

Sriracha hot sauce is great.  However, I would not want to live near a factory that makes it.  The recent news that a California city is discontinuing its nuisance lawsuit against the makers of Sriracha hot sauce was surprising after extremely intense pepper fumes were reported near the factory.  The decision was almost certainly influenced by the possibility that the factory could be moved to Texas.  Hopefully stronger filters will address the problem.     

Condominium and homeowners associations also sometimes find it necessary enforce real estate covenants that prohibit nuisances and other types of offensive behavior.  This is typically done through a combination of letters, fines, and lawsuits.  Due process procedures must be followed.  Associations should evaluate whether it is possible for owners to mitigate undesirable conditions to the extent that their desired uses of the property can continue.

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.