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Legislative Update

SB5796 / ESSB5796

Passed as Law · Effective June 6, 2024

ESSB5796 as Session Law: Chapter 321, Laws of 2024
Codification of ESSB5796 is complete. See RCW 64.90 →

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There are limited exceptions such as commercial-only condominiums and communities with <=12 units with average assessments <= ~$300/unit/year. Exceptions are enumerated in RCW 64.90.360, RCW 64.90.365 and RCW 64.90.375. View explanation on the home page →

SB5796 / ESSB5796 Amendments

A breakdown of all amendments introduced during the legislative process, including advocacy outcomes from HOA United and Condo Connection.

2024

SB5796 / ESSB5796 — Bill introduced

SB5796 was introduced to retrofit RCW 64.90 (WUCIOA) to all Washington State community associations, establishing a single standard for condominiums, co-ops, and HOAs statewide. Senator Jamie Pedersen (D – 43rd) served as primary sponsor.

  • Applies WUCIOA to all Washington State community associations as of January 1, 2028.
  • Eliminates the complexity of four different standards across RCW 64.32, 64.34, 64.38 and 64.90.
  • Washington State becomes the first to adopt changes from UCIOA's 2021 framework.

Abandoned

House Housing Committee Amendment

This amendment was proposed by the Washington Realtors Association but was ultimately abandoned after HOA United advocacy.

  • Proposed that a buyer can waive their right to receive a resale certificate.
  • HOA United successfully advocated for changes to this amendment. The senate refused to concur and the House receded from the amendment, effectively abandoning it.

Passed

Senate Floor Amendment 5796-S AMS PEDE S4512.2

Key changes introduced at the senate floor stage, including financial protections, records access, and emergency powers clarification.

  • Associations may collect an exclusive assessment against a unit owner limited to the expense incurred less any insured proceeds received. HOA United worked with Senator Pedersen to reverse the ability for associations to "double-dip."
  • Associations must produce retained records within 10 days unless redaction requires longer, and no later than 21 days unless a court order allows otherwise. HOA United worked with Senator Pedersen to prescribe what "reasonable" limits mean.
  • A board may take necessary actions resulting from an emergency to protect the common interest community. HOA United requested multiple changes to limit overly broad emergency powers.

Technical & Other Updates

  • Associations must redact electronic addresses of unit owners who elect confidentiality prior to disclosure of records.
  • Requires a quorum for unit owner approval of amendments to reallocate a common element as a limited common element.
  • Installation of an EV charging station on common elements does not require a reallocation.
  • Board must receive confirmation of payment before restoring any suspended right or privilege of a unit owner.
  • A transferee is presumed to elect to accept a special declarant right if a judgment or instrument does not describe one.
  • Associations may not prohibit installation of a flagpole within a unit or limited common element, subject to reasonable rules on size and location.

Passed

Substitute Bill

Additional clarifications and protections introduced across flagpoles, outdoor signs, liability, and record-keeping.

  • Plat community governing documents may not prohibit flagpole installation, subject to reasonable rules on location and size.
  • Associations may not prohibit outdoor signs but may adopt reasonable rules governing placement and manner.
  • Restores pre-existing RCW 64.90 language and increases liability for damage caused by gross or ordinary negligence where the declaration includes specific language.
  • Clarifies association approval process for reallocation of limited common elements.
  • Written records must be provided within 10 days of termination of a managing agent or the board's demand.

Technical & Other Updates

  • New law on divergence of physical boundaries replaces current law.
  • Requires disclosure notice in public offering statements.
  • Government-declared states of emergency must constitute an imminent threat to health, safety, habitability, or risk of substantial economic loss.
  • Makes various technical changes.

June 6, 2024

Pivotal amendments shaped the final form of WUCIOA for All.

Amendment D.1 — Mandatory Compliance Deadline Pushes back the effective start date for pre-WUCIOA communities to January 1, 2028, giving associations additional time to prepare and restate their governing documents.

 

Amendment D.2 — Secret Ballot Requirement Requires secret ballots for elections of board members, removal of board members or officers, amendments to governing documents, and votes related to reallocation of common elements. Information that would compromise ballot secrecy must be redacted prior to disclosure.

Colorful landscape with city skyline | Wucioa
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Administration & Technical Rules

Operational and transitional governance mechanics

  • Fewer opportunities to customize governing documents — reference the Less Wiggle Room section.
  • Borrowing requires more accountability and transparency.
  • More precise allowances for fees and charges.
  • Explicit allowance to assess units benefited.
  • Explicit ability to designate “high risk components.”
  • Limited authority for the Board to amend the declaration to correct errors and ambiguities without a vote of the members.
  • Board members and their immediate family members and affiliates may not bid to take an interest related to unit foreclosures.
  • Votes from multiple unit owners of the same unit are automatically void except as provided by a declaration.
  • Updates to licensed family child care restrictions.
  • Prohibition against unreasonable restrictions for adult family homes.
  • Precise procedure for delegation of authority from a sub-association to a master association.
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Development & Structural Changes

Rules affecting property structure and allocation

  • With limited exceptions, common elements and limited common elements are an association responsibility.
  • Conveyance and encumbrance of common elements is subject to additional conditions.
  • Common elements may be reallocated as limited common elements.
  • EV charging installations do not require reallocations.
  • Reallocation procedural updates including a quorum of owners required.
  • Explicit requirements governing the period of declarant control, transfer of association property and transfer of special declarant rights.
  • A declarant must transfer a reserve study, if one exists, to the unit owners.
  • Prohibition against adverse possession of common elements and easements.
  • Unit owners are not liable in actions against an association.
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Property Use & Owner Rights

Protections for reasonable property use

  • Voting rights cannot be suspended.
  • Limits on the suspension of privileges.
  • Limits on regulation of the use, occupancy or behavior in units.
  • Political signs may not be prohibited and are subject to reasonable rules about placement and manner.
  • Associations cannot unreasonably prohibit storage of compost, garbage and recycling receptacles.
  • Associations cannot unreasonably prohibit flagpoles within limited common elements and units.
  • Prohibition against arbitrary and capricious enforcement.
  • Specific rights of enforcement against tenants.
  • Allowances for Board discretion to stay enforcement.
  • Dispute resolution (ADR) can be adopted as a mandatory prerequisite to litigation.
  • Homeowners can request that the Board evaluate and remove unlawful restrictions in the governing documents.
  • Master property insurance must cover units and, unless specifically provided otherwise in the declaration, all improvements and betterments to the units.
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Financial & Assessments

Rules governing funds, costs, and enforcement

  • Associations must use accrual based accounting practices.
  • Annual audits cannot be waived by a vote of the members, except for associations with an annual budget under $50,000.
  • Budgets must include reserve borrowing information.
  • The Board must be in direct control of reserve funds.
  • Reserve transfers that are not between funds of the same association require two signatures.
  • Reserve studies must include all components where replacement cost exceeds 1% of the annual budget.
  • A statement expressing the reserve surplus or deficit on a per-unit basis must be included in reserve studies.
  • Reserve studies must be updated annually with few exceptions.
  • Less deference provided for Board discretion about the contents and preparation of reserve studies.
  • Associations must accept at least one form of payment at no charge.
  • Reserve funds can be invested pursuant to specific criteria.
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Records & Transparency

Disclosure and record-keeping requirements for associations

  • More thorough resale certificate disclosure standards.
  • Records disclosures must be provided within 10 days and at most within 21 days unless a court orders otherwise.
  • Records disclosures will include electronic addresses unless owners opt out.
  • Additional records must be retained by an association.
  • Agents must provide records to an association within 5 and 10 days of termination or the Board’s demand respectively.
  • Notice must be provided twice before creating, amending or repealing any rule.
  • Fine schedules are required before imposing fines.
  • Creation, amendment and repeal of fine schedules requires two notices in the same manner as rules.
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Elections & Board Rules

Standards governing elections and board structure

  • Secret ballots are required for elections and amendments.
  • Reasonable measures must be taken to verify members participating by electronic communication and to establish the authenticity of proxies and ballots.
  • Incumbent Board members and candidates cannot have any access to ballots.
  • Ballots must be opened, reviewed, and counted at the meeting called for such purpose and recorded in the meeting minutes.
  • Votes allocated to units owned by the association must be cast proportionally to the outcome of the matter.
  • The Board must be comprised of at least three members.
  • A quorum is only present if a majority of the directors are present at the time a vote is taken.
  • No more than one third of Board positions can be appointed at any time.
  • Application of conflict of interest and indemnification standards from RCW 24.06.
  • Directors may be removed by the Board if delinquent in payment of assessments and do not cure the delinquency.
  • Members have the right to immediately elect a successor when a director is removed.
  • Directors subject to removal have the right to speak at a meeting called for such purpose.
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Meetings & Voting

Detailed requirements for how and when associations must meet and make decisions

  • All meetings are open to owners and owners have the right to comment at each meeting.
  • Executive sessions must occur during open meetings and may only address a short list of confidential items.
  • Meetings must be formally noticed 14 days in advance or provided in a formally noticed schedule to all owners.
  • Meeting materials made available to the Board or Committee must also be made available to owners before every meeting.
  • Persons who disrupt a Board or Committee meeting may be warned and subsequently expelled.
  • Urgent matters allow scheduling Board meetings with 7 days notice instead of 14.
  • Meetings of members may be held by electronic means pursuant to specific criteria regardless of governing document restrictions.
  • Board meetings can be held by electronic means regardless of restrictions in the governing documents.
  • Meetings held by electronic means must include an option to join by phone.
  • Owners must be permitted to comment before Board discussion and decisions.
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Governance & Legal Framework

Core statutory rules governing associations statewide

  • WUCIOA defines 62 terms versus 17, 45 and 22 in prior statutes. Precise definitions make all the difference. (RCW 64.90.010)
  • More prescriptive content requirements for declarations, bylaws, maps and plans. (RCW 64.90.225)
  • The Board may amend the declaration without a vote of the owners under specific circumstances. (RCW 64.90.285(9)(10))
  • All dollar amounts fixed in the statute adjust with inflation.
  • Associations must be organized as corporations or LLCs.
  • Additional prescription for requirements to terminate a common interest community.
  • Additional limits on the rights of mortgagees.
  • Additional requirements for public offering statements, escrow and lien release.
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