SB5796  / ESSB5796

HOUSE HOUSING COMMITTEE AMENDMENT 5796-S.E AMH HOUS BORC 055 (ABANDONED)

• Provides that a buyer can waive their right to receive a resale certificate.  This was pushed by the Washington Realtors Association.

  • HOA United advocated for changes to this amendment.  The senate refused to concur with the amendment and the House receded from the amendment, effectively abandoning it.

SENATE FLOOR AMENDMENT 5796-S AMS PEDE S4512.2 

• Provides that an association may collect an exclusive assessment against a unit owner limited to the expense the association incurred less any insured proceeds received by the association.

  • HOA United worked with Senator Pedersen to reverse the ability for associations to "double-dip."

• Requires an association to produce retained records within 10 days' notice unless the request or redaction reasonably requires a longer time, and in no event later than 21 days unless a court order allows a longer time.

  • HOA United worked with Senator Pedersen to prescribe what "reasonable" limits.

• Clarifies that a board may take necessary actions that are a result of an emergency to protect the common interest community.

  • HOA United requested multiple changes to limit overly broad emergency powers.  This is a step in the right direction.

TECHNICAL & OTHER UPDATES

• Requires an association to redact or otherwise remove the electronic address of any unit owner who elects to keep such electronic address confidential, and the electronic address of any resident, prior to disclosure of records.

  • Correction to enact the intent of the original SB5796 language

• Requires a quorum for unit owner approval of amendments to an association's declaration to reallocate a common element as a limited common element or to reallocate the boundary of a unit.

• Provides that installation of an electric vehicle charging station on the common elements does not require a reallocation.

• Requires the board to have received confirmation of payment in addition to cleared funds before any suspended right or privilege of a unit owner who fails to pay an assessment is restored.

• Provides that a transferee is presumed to elect to accept a special declarant right if a judgment or instrument does not describe a special declarant right.

• Prohibits all associations from prohibiting the installation of a flagpole on or within a unit or a limited common element for the display of the United States or Washington flags, but allows such associations to adopt reasonable rules and regulations pertaining to the location and size of the flagpole.

SUBSTITUTE BILL

• Prohibits the governing documents of plat communities subject to WUCIOA from prohibiting the installation of a flagpole, but allows for reasonable rules and regulations regarding the location and size of the flagpole.

• Clarifies that associations may not prohibit displays of outdoor signs, but association may adopt reasonable rules governing the placement and manner of those displays.

• Restores some pre-existing RCW 64.90 language and increases liability of a unit owner or unit owner’s tenant, guest, invitee, or occupant for expenses related to damage or loss of property as a result of either gross negligence, or for negligence if the declaration contains a statement that an owner may be liable for damage or loss caused by such negligence.

• Clarifies association approval process for reallocation of limited common elements.

• Provides that written records must be provided within 10 days of termination of an association’s managing agent or the board’s demand.

TECHNICAL & OTHER UPDATES

• Clarifies that new law on divergence of physical boundaries replaces current law on divergence of physical boundaries.

• Requires disclosure notice in public offering statements.

• Clarifies that government-declared states of emergency must constitute an imminent threat to the health or safety of the public or residents, threat to the habitability of units, or risk of substantial economic loss to the association.

• Makes various technical changes.

AMENDMENT D.1

• Pushes back the effective start date for pre-WUCIOA communities to January 1, 2028.

AMENDMENT D.2

• Requires secret ballots.  Requires election of board members, removal of board members or officers, amendments to the declaration or governing documents, and votes related to reallocation common elements to be conducted by secret ballot.  Requires information that would compromise the secrecy of a secret ballot to be redacted or removed prior to disclosure.