WashingtonHB 23542025-2026 Regular SessionHouseWALLET

Concerning common interest communities.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Owners pay charger and heat-pump costs

Owners must pay inspection, upkeep, repair, replacement, damage, and removal costs for chargers and heat pumps serving only their unit. This includes temporary removal when needed, plus electricity and insurance costs for electric vehicle chargers. These duties pass to each future owner, regardless of installation date or where equipment parts are located. Community governing documents cannot shift these duties away from the owner.

Some middle-housing owners avoid reserve studies

Communities made up only of middle housing are exempt from state-required reserve studies unless their governing documents require them. Reserve studies help plan for future repair and replacement costs. The exemption applies only when no qualifying on-site reserve system is needed now or in the future. This covers systems for wastewater, health, safety, and groundwater or surface-water protection.

Association audits bring oversight and costs

Associations collecting at least $100,000 in yearly assessments must get a certified public accountant's audit at least annually. Below that threshold, an annual audit is required unless owners waive it each year by a majority vote. Votes assigned to developer-owned units do not count toward the waiver. The $100,000 threshold adjusts under state price-index rules, including July 1 adjustments when the specified index change reaches 10%. Audits provide financial oversight but can add association costs funded by owners.

Community documents set budget rejection votes

Community governing documents can change the share of owner votes needed to reject an association budget. The chosen share can make it easier or harder for owners to reject the budget.

Small communities get narrower state rules

Eligible plat-type or similar communities with no development rights and 50 or fewer units follow only selected state community rules. A separate exemption limits communities with six or fewer units, all middle housing, to three specified state rules. Both require a declaration capping average yearly residential assessments at $1,000, adjusted for inflation and excluding optional user fees. The developer must reasonably believe the cap will cover association expenses forever; qualifying owner-approved amendments provide another route. Before the transition meeting, raising a developer-set cap requires 90% approval from owners' votes, excluding developer-owned votes. These exemptions reduce legal requirements but also narrow the state protections available to owners.

Sponsors & Cosponsors

Sponsor

Julia Reed
Democratic • House

Cosponsors

Adam Bernbaum
Democratic • House
Alex Ramel
Democratic • House
Natasha Hill
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 140 • No: 0

Senate vote • 3/5/2026

3rd Reading & Final Passage

Yes: 48 • No: 0

House vote • 2/13/2026