SB 5129 — Concerning common interest communities.

19 ESSB 5129 2018, and any inconsistent provisions of chapter 58.19, 64.32, 64.34, or 64.38 RCW do not apply:

(e)p. RCW 64.90.502;

19 SB 5129 (e) RCW 64.90.502;

p.(2) Except as provided otherwise in subsection (4) of this section and subject to the provisions of the declaration, the association may:

20 ESSB 5129 (2) Except as provided otherwise in subsection (4) of this section and subject to the provisions of the declaration, the association may:

(d)p. Institute, defend, or intervene in litigation or in arbitration, mediation, or administrative proceedings or any other legal proceeding in its own name on behalf of itself or two or more unit owners on matters affecting the common interest community;

20 SB 5129 (d) Institute, defend, or intervene in litigation or in arbitration, mediation, or administrative proceedings or any other legal proceeding in its own name on behalf of itself or two or more unit owners on matters affecting the common interest community;

and p.(iii) Moving in, moving out, or transferring title to units to the extent provided for in the declaration;

21 ESSB 5129 (iii) Moving in, moving out, or transferring title to units to the extent provided for in the declaration;

(l) Enforce the governing documents and, after notice and opportunity to be heard, impose and collect reasonable fines for violations of the governing documents in accordance with a previously established schedule of fines adopted by the board of directors and furnishedp. to the owners pursuant to the requirements for notice in RCW 64.90.505;

21 SB 5129 furnished to the owners pursuant to the requirements for notice in RCW 64.90.505;

(w) Require that disputes between the association and unit owners or between two or more unit owners regarding the common interest community, other than those governed by chapter 64.50 RCW, be p.submitted to nonbinding alternative dispute resolution as a prerequisite to commencement of a judicial proceeding;

22 ESSB 5129 submitted to nonbinding alternative dispute resolution as a prerequisite to commencement of a judicial proceeding;

(i)p. Deny a unit owner or other occupant access to the owner's unit, or any limited common elements allocated only to that unit, or any common elements necessary to access the unit;

22 SB 5129 (i) Deny a unit owner or other occupant access to the owner's unit, or any limited common elements allocated only to that unit, or any common elements necessary to access the unit;

p.(b) In the notice, the board must set a date for a meeting of the unit owners, which must not be less than 14 and no more than 50 days after mailing of the notice, to consider ratification of the borrowing.

23(c) ESSBUnless 5129at (b)that Inmeeting, thewhether notice,or thenot boarda mustquorum setis apresent, dateunit forowners holding a meetingmajority of the unitvotes owners,in whichthe mustassociation notor beany lesslarger thanpercentage 14specified andin nothe moredeclaration thanreject 50 days after mailing of the notice,proposal to considerp. ratification of the borrowing.

(c)23 UnlessSB at5129 that meeting, whether or not a quorum is present, unit owners holding a majority of the votes in the association or any larger percentage specified in the declaration reject the proposal to borrow funds, the association may proceed to borrow the funds in substantial accordance with the terms contained in the notice.

p.(b) The covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with law;

24 ESSB 5129 (b) The covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with law;

(9)p. The board's decision under subsections (7) and (8) of this section to not pursue enforcement under one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances, but the board may not be arbitrary or capricious in taking enforcement action.

24 SB 5129 (9) The board's decision under subsections (7) and (8) of this section to not pursue enforcement under one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances, but the board may not be arbitrary or capricious in taking enforcement action.

(c) Unless provided otherwise in the declaration or organizational documents, board members and officers must take office upon adjournment of the meeting at which they were elected or appointed or, if not elected or appointed at a meeting, at the time p.of such election or appointment, and must serve until their successor takes office.

25(d) ESSBIn 5129determining the qualifications of suchany electionofficer or appointment,board andmember mustof servethe untilassociation, their"unit successorowner" takesincludes, office.unless the declaration or organizational documents provide otherwise, any board member, officer, member, partner, or trustee of any person, who is, p.

(d)25 InSB determining5129 the qualifications of any officer or board member of the association, "unit owner" includes, unless the declaration or organizational documents provide otherwise, any board member, officer, member, partner, or trustee of any person, who is, either alone or in conjunction with another person or persons, a unit owner.

It also may provide a method for filling p.vacancies in those positions, other than by election by the unit owners.

26 ESSB 5129 vacancies in those positions, other than by election by the unit owners.

Sec.

14.

RCW 64.90.420 and 2024 c 321 s 314 are each amended to read as follows:

(1) No later than 30 days following the date of the transition meeting held pursuant to RCW 64.90.415(4), the declarant must deliver or cause to be delivered to the board elected at the transition meeting all property of the unit owners and association as required by the declaration or this chapter including, but not limited to:

(a) The original or a copy of the recorded declaration and each amendment to the declaration;

(b) The organizational documents of the association;

(c) The minute books, including all minutes, and other books and records of the association;

(d) Current rules and regulations that have been adopted;

(e) Resignations of officers and members of the board who are required to resign because the declarant is required to relinquish control of the association;

(f) The financial records, including canceled checks, bank statements, and financial statements of the association, and source documents from the time of formation of the association through the date of transfer of control to the unit owners;

(g) Association funds or the control of the funds of the association;

(h) Originals or copies of any recorded instruments of conveyance for any common elements included within the common interest community but not appurtenant to the units;

(i) All tangible personal property of the association;

(j) Except for alterations to a unit done by a unit owner other than the declarant, a copy of the most recent plans and specifications used in the construction or remodeling of the common interest community, except for buildings containing fewer than three units;

(k) Originals or copies of insurance policies for the common interest community and association;

2726 ESSBSB 5129 (l)Sec. Originals or copies of any certificates of occupancy that may have been issued for the common interest community;

(m)14. Originals or copies of any other permits obtained by or on behalf of the declarant and issued by governmental bodies applicable to the common interest community;

(n) Originals or copies of all written warranties that are still in effect for the common elements, or any other areas or facilities that the association has the responsibility to maintain and repair, from the contractor, subcontractors, suppliers, and manufacturers and all owners' manuals or instructions furnished to the declarant with respect to installed equipment or building systems;

(o) A roster of unit owners and eligible mortgagees and their addresses and telephone numbers, if known, as shown on the declarant's records and the date of closing of the first sale of each unit sold by the declarant;

(p) Originals or copies of any leases of the common elements and other leases to which the association is a party;

(q) Originals or photocopies of any employment contracts or service contracts in which the association is one of the contracting parties or service contracts in which the association or the unit owners have an obligation or a responsibility, directly or indirectly, to pay some or all of the fee or charge of the person performing the service;

(r) Originals or copies of any qualified warranty issued to the association as provided for in RCW 64.35.505;

(s) Originals or copies of all other contracts to which the association is a party;

and (t) Originals or copies of the most recent reserve study prepared pursuant to RCW 64.90.545, if one exists.

(2) ((Within)) No later than 60 days ((of)) following the transition meeting, the board must retain the services of a certified public accountant to audit the records of the association as of the date of the transition meeting in accordance with generally accepted auditing standards unless the unit owners, other than the declarant, to which a majority of the votes are allocated elect to waive the audit.

The cost of the audit must be a common expense unless otherwise provided in the declaration.

The accountant performing the audit must examine supporting documents and records, including the cash disbursements and related paid invoices, to determine if expenditures were for association purposes and the billings, cash p.

28 ESSB 5129 receipts, and related records to determine if the declarant was charged for and paid the proper amount of assessments.

Sec.

15.

16.15.

(b)(i) An association must hold a special meeting of unit owners to address any matter affecting the common interest community or the association if its president, a majority of the board, or unit owners having at least 20 percent, or any lower percentage specified in the p.

2927 ESSBSB 5129 (b)(i) An association must hold a special meeting of unit owners to address any matter affecting the common interest community or the association if its president, a majority of the board, or unit owners having at least 20 percent, or any lower percentage specified in the organizational documents, of the votes in the association request that the secretary call the meeting.

(f) In the notice for a meeting held at a physical location, the board may notify all unit owners that they may participate remotely in the meeting by a means of communication described in (((e) of this)) subsection (3) of this section.

3028 ESSBSB 5129 (f)(2) InThe thefollowing noticerequirements forapply ato meetingmeetings heldof at a physical location, the board mayand notifycommittees allauthorized unitto ownersact thatfor they may participate remotely in the meetingboard: by a means of communication described in (((e) of this)) subsection (3) of this section.

(2) The following requirements apply to meetings of the board and committees authorized to act for the board:

After the transition meeting, unless the organizational documents provide otherwise, and except as otherwise provided in subsection (3) of this section, all board meetings must be at the common interest community or at a place convenient to the common p.interest community ((unless the unit owners amend the bylaws to vary the location of those meetings)).

31(e) ESSBAt 5129each interestboard communitymeeting, ((unless the unitboard ownersmust amendprovide thea bylawsreasonable toopportunity varyfor theunit locationowners ofto thosecomment meetings)).regarding matters affecting p.

(e)29 AtSB each5129 board meeting, the board must provide a reasonable opportunity for unit owners to comment regarding matters affecting the common interest community and the association.

(i) The meeting notice states the conferencing process to be used and provides information explaining how unit owners may participate p.in the conference directly or by meeting at a central location or conference connection;

32and ESSBp. 5129 in the conference directly or by meeting at a central location or conference connection;

and30 SB 5129 (ii) The process provides all unit owners the opportunity to hear or perceive the discussion and to comment as provided in (e) of this subsection.

(b) The process provides all participants the opportunity to hear or perceive the discussion and to comment as provided in subsection (2)(e) of this section;

3331 ESSBSB 5129 (b)(c) TheAny processvotes providesof all participants the opportunityboard tomembers hearare orconducted perceiveby theroll discussioncall andor toother commentverbal asvote; provided in subsection (2)(e) of this section;

(c) Any votes of the board members are conducted by roll call or other verbal vote;

17.16.

(3) Unless the declaration or organizational documents otherwise provide, unit owners may vote by proxy subject to the following requirements:

3432 ESSBSB 5129 (3)(a) UnlessVotes theallocated declarationto ora organizationalunit documentsmay otherwisebe provide,cast unitpursuant ownersto maya votedirected byor undirected proxy subjectduly toexecuted by a unit owner in the followingsame requirements:manner as provided in RCW 24.06.110.

(a) Votes allocated to a unit may be cast pursuant to a directed or undirected proxy duly executed by a unit owner in the same manner as provided in RCW 24.06.110.

and p.(iii) If the association allows electronic voting, instructions for electronic voting.

35 ESSB 5129 (iii) If the association allows electronic voting, instructions for electronic voting.

Any ballot provided by thep. association for election of board members by the unit owners must designate a blank space for unit owners to cast a vote for one or more candidates.

33 SB 5129 the association for election of board members by the unit owners must designate a blank space for unit owners to cast a vote for one or more candidates.

(m) An association that allows electronic ballots shall create a record of electronic votes capable of retention, retrieval, and review.

3634 ESSBSB 5129 (m)(5) AnIf associationthe governing documents require that allowsvotes electronicon ballotsspecified shallmatters createaffecting athe recordcommon ofinterest electroniccommunity votesbe capablecast ofby retention,lessees retrieval,rather andthan review.unit owners of leased units:

(5) If the governing documents require that votes on specified matters affecting the common interest community be cast by lessees rather than unit owners of leased units:

(b) At a meeting of unit owners held pursuant to this section, the secret ballots physically received by the association must be p.opened and counted and the results of the secret ballots received by the association by electronic means must be reviewed, announced, and recorded in the meeting minutes.

37A ESSBquorum 5129is openednot andrequired countedto and the results of the secret ballots received by the association by electronic means must be reviewed,p. announced, and recorded in the meeting minutes.

A35 quorumSB is5129 not required to be present when the secret ballots physically received by the association are opened and counted or the results of the secret ballots received by the association by electronic means are reviewed, announced, and recorded in the meeting minutes.

18.17.

19.18.

(1)(a) Assessments for common expenses ((and those specially allocated expenses that are subject to inclusion in a budget)) must p.be made at least annually based on a budget adopted at least annually by the association in the manner provided in RCW 64.90.525.

38p. ESSB 5129 be made at least annually based on a budget adopted at least annually by the association in the manner provided in RCW 64.90.525.

36 SB 5129 (b) Assessments for common expenses ((and specially allocated expenses)) must commence on all units that have been created upon the conveyance of the first unit in the common interest community;

(b) Expenses specified in the declaration as benefiting fewer than all of the units or their unit owners exclusively against the units benefited in proportion to their common expense liability or in any other proportion that the declaration provides, but if the common expense is for the maintenance, repair, or replacement of a common element other than a limited common element, the expense may be p.

3937 ESSBSB 5129 element other than a limited common element, the expense may be assessed exclusively against them only if the declaration reasonably identifies the common expense by specific listing or category;

This subsection does not prevent a unit owner from asserting a claim p.against another person for the amount assessed if that other person would be liable for the damages under general legal principles.

40p. ESSB 5129 against another person for the amount assessed if that other person would be liable for the damages under general legal principles.

38 SB 5129 (9) If common expense liabilities are reallocated, assessments and any installment of assessments not yet due must be recalculated in accordance with the reallocated common expense liabilities.

20.19.

p.(ii) The association's actual costs and reasonable attorneys' fees incurred in foreclosing its lien but incurred after the giving of the notice described in (a)(iii) of this subsection;

41provided, ESSBp. 5129 (ii) The association's actual costs and reasonable attorneys' fees incurred in foreclosing its lien but incurred after the giving of the notice described in (a)(iii) of this subsection;

provided,39 SB 5129 however, that the costs and reasonable attorneys' fees that will have priority under this subsection (3)(a)(ii) shall not exceed $2,000 or an amount equal to the amounts described in (a)(i) of this subsection, whichever is less;

(ii) "Capital improvements" does not include making, in the ordinary course of management, repairs to common elements or replacements of the common elements with substantially similar items, p.

4240 ESSBSB 5129 (ii) "Capital improvements" does not include making, in the ordinary course of management, repairs to common elements or replacements of the common elements with substantially similar items, subject to:

(10) This section does not prohibit actions against unit owners to recover sums for which subsection (1) of this section creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

4341 ESSBSB 5129 (10)(11) ThisThe sectionassociation doesupon notwritten prohibitrequest actionsmust againstfurnish to a unit ownersowner toor recovera sumsmortgagee fora whichstatement subsectionsigned (1)by an officer or authorized agent of thisthe sectionassociation createssetting aforth lienthe oramount prohibitof anunpaid associationassessments fromor takingthe apriority deedamount inagainst lieuthat ofunit, foreclosure.or both.

(11) The association upon written request must furnish to a unit owner or a mortgagee a statement signed by an officer or authorized agent of the association setting forth the amount of unpaid assessments or the priority amount against that unit, or both.

(c) In a cooperative in which the unit owners' interests in the units are real estate, the association's lien must be foreclosed in p.like manner as a mortgage on real estate or by power of sale under (b) of this subsection.

44(d) ESSBIn 5129a likecooperative mannerin aswhich athe mortgageunit onowners' realinterests estatein orthe byunits powerare ofpersonal saleproperty, underthe (b)association's oflien thismust subsection.be p.

(d)42 InSB a5129 cooperative in which the unit owners' interests in the units are personal property, the association's lien must be foreclosed in like manner as a security interest under chapter 62A.9A RCW.

p.(c) The proceeds of a foreclosure sale must be applied in the following order:

45 ESSB 5129 (c) The proceeds of a foreclosure sale must be applied in the following order:

(ii)p. The reasonable expenses of securing possession before sale;

43 SB 5129 (ii) The reasonable expenses of securing possession before sale;

(15) In an action by an association to collect assessments or to foreclose a lien on a unit under this section, the court may appoint p.a receiver to collect all sums alleged to be due and owing to a unit owner before commencement or during pendency of the action.

46 ESSB 5129 a receiver to collect all sums alleged to be due and owing to a unit owner before commencement or during pendency of the action.

During pendency of thep. action, the court may order the receiver to pay sums held by the receiver to the association for any assessments against the unit.

44 SB 5129 the action, the court may order the receiver to pay sums held by the receiver to the association for any assessments against the unit.

(19) The association is entitled to recover any costs and reasonable attorneys' fees incurred in connection with the collection of delinquent assessments, whether or not such collection activities p.result in a suit being commenced or prosecuted to judgment.

47The ESSBprevailing 5129party resultis inalso aentitled suitto beingrecover commencedcosts orand prosecutedreasonable top. judgment.

The45 prevailingSB party5129 is also entitled to recover costs and reasonable attorneys' fees in such suits, including any appeals, if it prevails on appeal and in the enforcement of a judgment.

(b) If, when a delinquent account is referred to an association's attorney, the first preforeclosure notice required under (a) of this subsection has not yet been mailed to the unit owner, the association p.

4846 ESSBSB 5129 (b) If, when a delinquent account is referred to an association's attorney, the first preforeclosure notice required under (a) of this subsection has not yet been mailed to the unit owner, the association or the association's attorney shall mail the first preforeclosure notice to the unit owner in order to satisfy the requirement in (a) of this subsection.

(23) Every aspect of a collection, foreclosure, sale, or other conveyance under this section, including the method, advertising, time, date, place, and terms, must be commercially reasonable.

4947 ESSBSB 5129 (23)Sec. Every aspect of a collection, foreclosure, sale, or other conveyance under this section, including the method, advertising, time, date, place, and terms, must be commercially reasonable.

Sec.20.

21.

(c) Notwithstanding (a) or (b) of this subsection, an association of single-family homes, site condominiums, or a planned use development where the units are not immediately adjacent may not requirerestrict approval of the installation of an electric vehicle charging station unless the electric vehicle charging station:

or (ii) Is connected to a common electrical power supply.supply;

or (iii) Is installed outside the envelope of a primary or secondary dwelling or the unit's garage and is visible from the street, alley, or ground floor of another unit.

(c) If an application is not denied in writing within 60 days from the date of receipt of the application, the application is p.

5048 ESSBSB 5129 (c) If an application is not denied in writing within 60 days from the date of receipt of the application, the application is deemed approved, unless that delay is the result of a reasonable request for additional information.

(d) Register the electric vehicle charging station with the association within 30 days after installation;

5149 ESSBSB 5129 (d)(e) RegisterPay for the electricity usage associated with the electric vehicle charging station withand the associationrequired withinmeans 30to daysfacilitate afterpayment installation;for the electricity;

(e) Pay for the electricity usage associated with the electric vehicle charging station and the required means to facilitate payment for the electricity;

(8) ((The)) ExceptNotwithstanding as set forth in the governing documents and without regard for when an electric vehicle charging station was first put into service and the location of any components thereof, the owner and each successive owner of an electric vehicle charging station exclusively serving the owner's unit is responsible for:

(b) Costs for damage to the electric vehicle charging station, any unit, common element, or limited common element resulting from p.the installation, use, inspection, maintenance, repair, removal, or replacement of the electric vehicle charging station;

52p. ESSB 5129 the installation, use, inspection, maintenance, repair, removal, or replacement of the electric vehicle charging station;

50 SB 5129 (c) The cost of electricity associated with the electric vehicle charging station;

p.Sec.

5321. ESSB 5129 Sec.

22.

(1)(a)p. Within thirty days after adoption of any proposed budget for the common interest community, the board must provide a copy of the budget to all the unit owners and set a date for a meeting of the unit owners to consider ratification of the budget not less than fourteen nor more than fifty days after providing the budget.

51 SB 5129 (1)(a) Within thirty days after adoption of any proposed budget for the common interest community, the board must provide a copy of the budget to all the unit owners and set a date for a meeting of the unit owners to consider ratification of the budget not less than fourteen nor more than fifty days after providing the budget.

23.22.

5452 ESSBSB 5129 (1) The association must prepare, or cause to be prepared, at least annually, a financial statement of the association in accordance with accrual based accounting practices.

24.23.

5553 ESSBSB 5129 or removed only at the direction of the board.

5654 ESSBSB 5129 (ii) "Independent" means a person who:

25.24.

5755 ESSBSB 5129 (c) This section must not be construed to permit installation by a unit owner of heat pump equipment on or in common elements without approval of the board which shall not be unreasonably withheld.

5856 ESSBSB 5129 authorities, and all other applicable zoning, land use or other ordinances, building codes, or land use permits.

(7) ((The)) ExceptNotwithstanding as set forth in the governing documents and without regard for when a heat pump was first put into service and the location of any components thereof, the unit owner and each successive owner of ((the)) a heat pump exclusively serving the owner's unit is responsible for:

5957 ESSBSB 5129 Sec.

26.25.

(c) The seller attests that they have owned the property for at least 365 days and, to the best of the seller's knowledge, the association has not sent notice of an annual meeting, budget ratification, or assessments, or attempted to enforce the covenants in the last five years or since the seller purchased the property, whichever is less;

6058 ESSBSB 5129 association or its authorized agent and has not received a response within three business days.

27.26.

6159 ESSBSB 5129 (n) The identification of any real property not in the common interest community that unit owners have a right to use and a description of the terms of such use;

6260 ESSBSB 5129 (iii) Any rights of first refusal to lease or purchase any unit or any of the common elements contained in the governing documents;

6361 ESSBSB 5129 prepared in accordance with RCW 64.90.545 and 64.90.550 or the governing documents;

6462 ESSBSB 5129 conversion buildings material to the use and enjoyment of the conversion buildings;

and (rr) ((InIn a condominium, plat community, or miscellaneous community containing a unit not having horizontal boundaries described in the declaration, a))a A statement whether the unit may be sold without consent of all the unit owners after termination of the common interest community under RCW 64.90.290.

6563 ESSBSB 5129 (3) If you elect to cancel your contract pursuant to this notice, you may do so by hand-delivering notice of cancellation, or by mailing notice of cancellation by prepaid United States mail, to the seller at the address set forth in this public offering statement or at the address of the seller's registered agent for service of process.

6664 ESSBSB 5129 reserves, (2) include a component in a reserve study, or (3) provide any or sufficient contributions to a reserve account for a component." (f) "DEPOSITS AND PAYMENTS.

6765 ESSBSB 5129 FINES, FEES, INTEREST, LATE CHARGES, AND COSTS OF COLLECTION, INCLUDING REASONABLE ATTORNEYS' FEES.

28.27.

6866 ESSBSB 5129 statement.

6967 ESSBSB 5129 Sec.

29.28.

7068 ESSBSB 5129 (j) The current operating budget of the association;

7169 ESSBSB 5129 purchasers of units.

7270 ESSBSB 5129 LATE CHARGES, AND COSTS OF COLLECTION, INCLUDING REASONABLE ATTORNEYS' FEES.

7371 ESSBSB 5129 a contract for the purchase of the unit within five days after first receiving the resale certificate.

30.29.

7472 ESSBSB 5129 (d) A written statement that a purchaser may put a unit only to a specified use is an express warranty that the specified use is lawful.

31.30.

7573 ESSBSB 5129 from waste or nuisance, shall not constitute an action for purposes of this chapter;

7674 ESSBSB 5129 (a) A description of the property which is then subject to the deed of trust;

7775 ESSBSB 5129 "THIS NOTICE IS ONE STEP IN A PROCESS THAT COULD RESULT IN YOUR LOSING YOUR HOME.

7876 ESSBSB 5129 the deed of trust and the name, address, and telephone number of a party acting as a servicer of the obligations secured by the deed of trust;

7977 ESSBSB 5129 an obituary, a published death notice, or documentation of an open probate action for the estate of the borrower or grantor.

8078 ESSBSB 5129 a minimum, the loan balance, interest rate and interest reset dates and amounts, balloon payments if any, prepayment penalties if any, the basis for the default, the monthly payment amount, reinstatement amounts or conditions, payoff amounts, and information on how and where payments should be made.

32.31.

8179 ESSBSB 5129 (2) RCW 64.32.350 (Heat pumps) and 2024 c 128 s 1;

33.32.

34.33.

35.34.

(1) Sections 2 through 4, 11, 19,18, 21,20, and 2524 of this act take effect January 1, 2026.

(2) Section 3433 of this act takes effect January 1, 2028.

36.35.

Section 3130 of this act expires January 1, 2028.

8280 ESSBSB 5129