HB 1043 — Concerning association records in common interest communities.

H-0551.1H-0209.2 SUBSTITUTE HOUSE BILL 1043 State of Washington 68th Legislature 2023 Regular Session By House Housing (originally sponsored by Representatives McEntire, Leavitt, and Walsh)Walsh READPrefiled FIRST12/16/22. TIME 01/19/23.

Read first time 01/09/23.

Referred to Committee on Housing.

and amending RCW 64.32.170, 64.34.372, 64.38.045, and 64.90.495.64.38.045.

(b) Subject to (d) and (e) of this subsection, the list of apartment owners must be made available for examination and copying p.

1 SHBHB 1043 (b)by Subjectall toapartment (d)owners, andholders (e) of thismortgages subsection,on the listapartments, of apartment owners must be made available for examination and copying by all apartment owners and their authorized agents as follows, unless agreed otherwise:

(e) The list of apartment owners mustmay havebe thewithheld followingfrom informationinspection redactedand orcopying otherwiseto removedthe priorextent tothat disclosure:it concerns:

(g) An association is not obligated to compile or synthesize information for the purposes of this subsection.

At least annually, the association shall prepare, or cause to be prepared, a financial p.statement of the association in accordance with generally accepted accounting principles.

2 SHB 1043 statement of the association in accordance with generally accepted accounting principles.

In the case of a condominiump. consisting of fewer than ((fifty)) 50 units, an annual audit is also required but may be waived annually by unit owners other than the declarant of units to which ((sixty)) 60 percent of the votes are allocated, excluding the votes allocated to units owned by the declarant.

2 HB 1043 condominium consisting of fewer than ((fifty)) 50 units, an annual audit is also required but may be waived annually by unit owners other than the declarant of units to which ((sixty)) 60 percent of the votes are allocated, excluding the votes allocated to units owned by the declarant.

(b) Subject to (d) and (e) of this subsection, the list of unit owners must be made available for examination and copying by all unit ownersowners, holders of mortgages on the units, and their authorized agents as follows, unless agreed otherwise:

(e) The list of unit owners mustmay havebe thewithheld followingfrom informationinspection redactedand orcopying otherwiseto removedthe priorextent tothat disclosure:it concerns:

p.(ii) The address of any unit owner or resident who is known to the association to be a participant in the address confidentiality program described in chapter 40.24 RCW or any similar program established by law;

3 SHB 1043 (ii) The address of any unit owner or resident who is known to the association to be a participant in the address confidentiality program described in chapter 40.24 RCW or any similar program established by law;

or (iv)p. Information the disclosure of which would violate a law or a court order.

3 HB 1043 (iv) Information the disclosure of which would violate a law or a court order.

(g) An association is not obligated to compile or synthesize information for the purposes of this subsection.

(2) All((All records of the association, ((includingincluding the names and addresses of owners and other occupants of the lots))lots, except as provided in subsection (5) of this section, shall be available for examination by all owners, holders of mortgages on the lots, and their respective authorized agents on reasonable advance notice during normal working hours at the offices of the association or its managing agent.

The association may impose and collect a reasonable charge for copies and any reasonable costs incurred by the association in providing access to records.records.)) The association shall keep a complete and accurate list of lot owners.

The list must include the names of the current lot owners, addresses used by the association to communicate with them, and the number of votes allocated to each lot.

The financial statements of associations with annual assessments of ((fifty thousand dollars)) $50,000 or more shall be audited at least annually by an independent certified public accountant, but the audit may be waived if ((sixty-seven)) 67 percent of the votes cast by owners, in p.

4 SHBHB 1043 statements of associations with annual assessments of ((fifty thousand dollars)) $50,000 or more shall be audited at least annually by an independent certified public accountant, but the audit may be waived if ((sixty-seven)) 67 percent of the votes cast by owners, in person or by proxy, at a meeting of the association at which a quorum is present, vote each year to waive the audit.

(5)(a) TheSubject associationto shall(c) keepand a(d) completeof andthis accuratesubsection, all association records, including the list of lot owners.owners, must be made available for examination and copying by all owners, holders of mortgages on the lots, and their respective authorized agents as follows, unless agreed otherwise:

The list must include the names of the current lot owners, addresses used by the association to communicate with them, and the number of votes allocated to each lot.

(b) Subject to (d) and (e) of this subsection, the list of lot owners must be made available for examination and copying by all owners and their respective authorized agents as follows, unless agreed otherwise:

(c)(b) A right to copy therecords list of lot owners under (b) of this subsectionsection includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by a lot owner.

(d)(c) An association may charge a reasonable fee for producing and providing copies of theany listrecords ofunder lotthis ownerssection and for supervising a lot owner's inspectioninspection. of the list.

(e)(d) The list of lot owners mustmay havebe thewithheld followingfrom informationinspection redactedand orcopying otherwiseto removedthe priorextent tothat disclosure:it concerns:

p.(e) Information provided pursuant to this section may not be used for any commercial purposes.

5 SHB 1043 (f) Information provided pursuant to this section may not be used for any commercial purposes.

(g) An association is not obligated to compile or synthesize information for the purposes of this subsection.

Sec.

4.

RCW 64.90.495 and 2018 c 277 s 320 are each amended to read as follows:

(1) An association must retain the following:

(a) The current budget, detailed records of receipts and expenditures affecting the operation and administration of the association, and other appropriate accounting records within the last seven years;

(b) Minutes of all meetings of its unit owners and board other than executive sessions, a record of all actions taken by the unit owners or board without a meeting, and a record of all actions taken by a committee in place of the board on behalf of the association;

(c) The names of current unit owners, addresses used by the association to communicate with them, and the number of votes allocated to each unit;