A Message to HOAs: Consider Updating Your CC&Rs!
Last year, I wrote a blog post here regarding RCW 64.90, known as the Washington Uniform Common Interest Ownership Act (WUCIOA), which took effect on July 1, 2018. WUCOIA governs all community association formed on or after July 1, 2018, with some limited exceptions. Starting on January 1, 2028, the former homeowner’s association and condominium association statutes (RCWs 64.32, 64.34, and 64.38) will all be repealed and superseded by WUCOIA.
WUCOIA establishes significant requirements pertaining to, among other things, the process of adopting budgets, securing reserve studies, records-keeping, and levying and enforcement of assessments. Some of these requirements differ dramatically from the pre-existing statutes that governed homeowner’s association and/or condominium associations.
For example, CW 64.32 did not require homeowner’s associations to provide resale certificates to owners seeking to sell their homes. A resale certificate provides standard information regarding the condominium, the unit for sale, and the obligations of the homeowners. WUCOIA, however, will require that HOAs provide this information to sellers seeking to sell their homes.
On the other hand, unlike with homeowner’s associations, which require that all Board meetings be open to the owners in the community, RCW 64.34 did not require open meetings for condominium Boards. WUCOIA now requires open Board meetings for all community associations.
Some of the requirements under WUCOIA include:
- That the owners of a community association may terminate the community by a vote of 80% of the votes in the association, unless a higher percentage is required by the CC&Rs.
- Permission of remote voting by owners or their proxies.
- Requiring a simple majority vote (over 50%) to permit an action of the community association, except as otherwise provided under WUCOIA or the CC&Rs.
- That the records of the association be provided to owners upon request within 10 days, unless more time is reasonably required, but never to exceed 21 days absent a court order.
- A uniform standard that 20% of the attendance of the owners or their proxies, whether in person, remotely, or by absentee ballot, constitutes a quorum for a meeting of the owners of the community association.
Some of the prohibitions under WUCOIA include:
- A prohibition on owners maintaining adverse possession claims against the Common Areas.
- A prohibition on Board members and their families acquiring interest in a property foreclosed upon by the community association.
- A prohibition on the Board disallowing the display of signs (though reasonable rules can be adopted).
Some of the rights afforded under WUCOIA include:
- The right of the Association to grant easements, leases, and licenses through or over Common Areas.
- The right of individual owners to use their units/lots as adult family homes.
The above list constitutes only a non-exhaustive subset of the changes and clarifications under WUCOIA.
Current community associations formed prior to the establishment of WUCOIA may face difficulties to the extent their CC&Rs have provisions inconsistent with the statutory requirements of WUCOIA. Indeed, WUCOIA will supersede most of the inconsistent provisions contained within a community association’s CC&Rs. As a result, failure to amend the CC&Rs to account for the changes brought on by WUCOIA may result in chaotic and disorganized enforcement of the governing documents. It may even open a community association up to legal challenges if it is not careful understanding the interplay between WUCOIA and its soon-to-be outdated inconsistent CC&R provisions. As a result, amending the CC&Rs to comply with WUCOIA may be the best way to avoid uncertainty and litigation.
The attorneys at Beresford Booth have experience assisting condominium and homeowner’s associations with a variety of matters, including those involving WUCOIA and amendment to CC&Rs. If you need guidance navigating through any legal issues involving your community association, please do not hesitate to contact us at info@beresfordlaw.com or by phone at (425) 776-4100.