WashingtonSB 51292025-2026 Regular SessionSenateWALLET

Concerning common interest communities.

Sponsored By: Jamie Pedersen (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 5 benefits, 0 costs, 13 mixed.

Clearer condo sale disclosures and fee caps

Buyers must get the public offering statement before closing. If you get it 7 days or fewer before signing, you can cancel within 7 days or extend closing by up to 7 days; if you got it more than 7 days before signing, you cannot cancel. Associations must provide a resale certificate within 10 days after request and payment; they can charge up to $275 to prepare it and up to $100 to update it within six months. If you get the resale certificate 5 days or fewer before signing, you can cancel within 5 days, and you are not liable for unpaid assessments above the amount shown. Sellers can certify a resale certificate is unavailable in set cases, like no response within 10 days after payment or three good‑faith attempts with no reply within three business days, or after 365 days of ownership with no notices or enforcement in 5 years. Resale certificates must also disclose any EV charging requirements and costs. Written promises in the offering statement or in a signed record create express warranties that transfer to the buyer.

Small HOAs can cap dues

A small community with no development rights and 50 or fewer units can use a limited set of rules. Its declaration can cap the annual average assessment at $1,000 per residential unit, not counting optional user fees. The declarant must reasonably believe the cap is enough. Before the transition meeting, the cap cannot be raised without consent of owners holding 90% of votes.

Audits and records at turnover

Associations must prepare yearly accrual‑based financial statements. If annual assessments are $50,000 or more, a certified public accountant must audit each year. If less than $50,000, an audit is still required unless non‑declarant owners holding a majority waive it each year. Within 30 days after the transition meeting, the declarant must turn over key records, funds, contracts, insurance, owner lists, and any reserve study. Within 60 days, the board must hire a CPA to audit unless non‑declarant owners holding a majority waive it; the audit cost is a common expense.

Budgets, special assessments, and loans

Boards must send the proposed budget within 30 days of adoption and hold a ratification meeting 14–50 days later. If owners do not reject it at that meeting, the budget and assessments take effect even without a quorum. Budgets must show income, expenses, per‑unit assessments and due dates, reserve contributions, and any reserve surplus or deficit per unit. Special assessments can be proposed and paid in installments, and they apply unless rejected at the meeting. Any loan secured by future association income needs a detailed owner notice and a ratification meeting; owners can stop it by majority vote. The association must offer at least one way to pay assessments with no owner fee.

EV chargers allowed; heat pump costs

Associations cannot ban or unreasonably restrict personal EV charging stations in your unit or parking space. In single‑family, site condos, or planned unit developments where units are not adjacent, no approval is required unless the charger is on common elements or tied to common power. Associations must approve reasonable, feasible heat pump installs. You must follow design rules, get permits, hire a qualified contractor, and pay for installation, upkeep, repairs, removal, and restoring common areas unless you and the association agree otherwise in writing.

HOA collections, liens, and foreclosures

An association lien can have limited priority if enforcement starts: up to six months of budgeted assessments and up to $2,000 in foreclosure costs, with at least 60 days’ prior notice to the lender. If the association forecloses nonjudicially, it loses that special priority. Your personal liability and the lien for unpaid assessments expire if no enforcement or collection suit starts within six years. The association must provide a binding payoff or priority statement within 15 days of a written request. Board members, their close family, and affiliates cannot bid at an association lien foreclosure. If the declaration allows, the association may assess an owner up to the property insurance deductible for a covered loss that falls within the deductible.

New foreclosure and trustee rules for homes

Trustees must keep a Washington street address, be physically present there, and have a working phone through the sale date. Before a sale notice on homes with up to four units, the lender must meet state pre‑foreclosure requirements. If the borrower is deceased, notices must go to known family, any owner of record, and heirs; if names or addresses cannot be found with reasonable diligence, the trustee must record a sworn statement. If someone not on the loan claims to be a successor in interest, the trustee cannot record a sale until it requests documents; the claimant gets 30 days to provide proof of death and 60 days to prove ownership, and after proof the servicer must share loan details within 20 days. Trustees can rely on a lender’s sworn declaration that it holds the loan, and certain associations are excused from the holder‑proof rule; servicers may stop a foreclosure and use other allowed methods. The law also defines when property is used for agricultural purposes.

New HOA budget, fees, and refunds

Common expense assessments are set at least once a year by an annual budget. They start when the first unit is conveyed; the developer may delay some assessments but then must pay those expenses. Accounts are reconciled yearly unless no owner would see material savings, and any surplus after expenses and reserve prepayments is paid or credited to owners unless the declaration says otherwise. Reserve‑fund payments (except transfers and investments) need approval by two officers or directors and invoices; any reserve borrowing must include a repayment plan. The declaration may allow a one‑time working capital contribution at first sale or occupancy, but it cannot cover the developer’s expenses. The declaration may allocate certain costs by use, risk, or to limited common areas. The association can charge an owner for damage caused by willful misconduct or gross negligence, or for failing maintenance standards if allowed, after notice and a hearing, and only for net costs after insurance.

New rules for HOA reserves

The law sets a clear formula to show the fully funded balance for reserves. It also defines when reserve costs are “nominal” (under 50% or 75% of yearly expenses, depending on the community type). Reserve money must be in separate accounts, like cash, money markets, CDs, or U.S. Treasuries. New investments in other securities are allowed only when reserves are at least $250,000 and at least 50% stays in those safer accounts, unless 75% of votes approve fuller investing with safeguards. “Common expense” now means the association’s spending and debts plus reserve allocations.

Stronger mortgage foreclosure protections

For homes with up to four units, a trustee must have proof the lender holds the note before recording a sale notice; a sworn declaration counts. At least 30 days before a sale notice, the borrower must get a default notice by first‑class and certified mail, plus posting or service, with itemized amounts and key contacts. For up to four‑unit homes, the lender must also send the sworn holder declaration and mediation contact information. If a deed of trust falsely says the property is not mainly for farming at grant/amendment and at sale, the lender must use judicial foreclosure. These trustee‑sale provisions added by this act expire January 1, 2028.

Heat pump rights in your HOA

Your association cannot ban or unreasonably block a heat pump in your unit. If approval is required, it must process your request like other design changes and decide without delay. If it does not deny in writing within 60 days, it is approved unless it reasonably asked for more information. The association cannot charge an installation fee, but may charge the same processing fee it charges for other design requests. If the association willfully breaks these rules and you win in court, you can get actual damages, up to $1,000 in civil penalties, and your reasonable attorney fees.

Notice for renters in condo conversions

If you rent in a defined conversion building, the owner must give you a written notice before you sign or move in. The notice says the unit is, or may become, part of a common interest community and subject to sale.

Stronger HOA meeting and voting rules

Your association must hold a yearly meeting and mail notice 14–50 days ahead with the agenda and any text of amendments or removal votes. Owners holding at least 20% of votes can require a special meeting. The board must allow at least 15 minutes for owner comments at the start and about 90 seconds per owner per unit. Identity checks are required for remote attendees, proxies, and absentee or electronic ballots. Board elections, removals, and governing‑document changes use secret ballots, and candidates or incumbents cannot access or count them early. After transition, unanimous written consent is limited to simple or ratified tasks, and the board must have at least three members with an owner majority.

Faster HOA approvals for electric car chargers

Your association must process EV charger requests like other design changes. If it does not deny in writing within 60 days, the request is approved unless it reasonably asked for more information. The association cannot charge a placement fee, but may charge the same processing fee it charges for other design requests. You must hire a qualified electrician, register the charger within 30 days, and pay for the electricity and any payment system. If required, you must provide a certificate of insurance and repay any added premium within 14 days. You can place chargers on common areas without a formal reallocation. If the association willfully breaks these EV rules, you can recover actual damages, up to $1,000 in civil penalties, and your reasonable attorney fees if you win.

Rules for master associations

A declaration can let a master association exercise certain powers. A board may delegate after notice; owners have 30 days to object in writing. If 10% or more of votes object, owners must vote to approve the delegation. Revoking a delegation requires amending the declaration. After delegation, the original board and officers are not liable for the master association’s actions on that delegated power.

What is your unit vs common

When walls, floors, or ceilings mark a unit boundary, the finished surfaces (paint, flooring, wall coverings) are part of the unit. Fixtures that serve only one unit but sit partly outside the boundary are limited common elements. Exterior items that serve a single unit, like balconies, doors, windows, and some fireplaces, are limited common elements allocated to that unit.

Which condo and HOA law applies

Communities created on or after July 1, 2018, or those that elected chapter 64.90, follow that chapter instead of older laws. For older communities, listed parts of chapter 64.90 apply and replace inconsistent parts of chapters 64.32 or 64.34. If chapter 64.38 conflicts with certain corporation statutes, chapter 64.38 controls. All apartment owners, tenants, employees, and users must follow the declaration and bylaws. A common interest community means owners must share costs like taxes, insurance, maintenance, or services. Governing documents cannot change most of chapter 64.90 except for items the law specifically allows. Several older sections on EV charging, heat pumps, and meetings are repealed January 1, 2026.

Future start dates and repeals for associations

Sections 2–4, 11, 19, 21, and 25 take effect January 1, 2026. Section 34 takes effect January 1, 2028. The law repeals RCW 64.90.509 about how governing documents can vary chapter rules. It also repeals a 2024 law section on January 1, 2028.

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Sponsors & Cosponsors

Sponsor

Jamie Pedersen
Democratic • Senate

Cosponsors

Paul Harris
Republican • Senate
T'wina Nobles
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 139 • No: 5

House vote • 4/10/2025

3rd Reading & Final Passage

Yes: 90 • No: 5 • Other: 3

Senate vote • 2/12/2025