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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.