RESERVE STUDY REQUIREMENTS: In April of 2011, Washington State created a new law stating all homeowners associations must have a study of their reserve items (long term improvements) performed by the end of 2012. However, there are three exceptions to the rule. We have created a summary of the regulation and outlined the exceptions for your review. RESERVE STUDY SUMMARY NOTE: The requirement for HOA's was changed from "required" to "strongly suggested" in 2016. (There was no notation as to who or how this change occurred.)
APPROVAL OF ANNUAL MEMBERSHIP MEETING MINUTES: House Bill #2567 was approved in the 2014 year. The amendment to the existing regulation was on homeowners approving the previous years Annual Meeting minutes, and not just the elected Board of Directors, at each annual membership meeting. To summarize the amendment, the HOA must present the previous years annual meeting minutes at the current annual meeting for approval by the membership/homeowners. Approval of the minutes is based on quorum requirements outlined in governing documents. If quorum attendance is not met at the annual meeting, mailing a proxy ballot vote to each homeowner can fulfill the agreement as long as each ballot is signed by the homeowner. This law requires homeowners to approve the previous years Annual Meeting minutes.
CHANGES IN APPROVAL OF ANNUAL BUDGET: The Washington Uniform Common Interest Ownership Act (WUCIOA) was adopted in 2018. Existing HOA's before 2018 may adopt the new act or continue using the current governing documents for the HOA. However, Budget Ratification was changed for everyone. All HOA's must follow a budget ratification (approval) process as outlined in RCW 64.90.525 with six specific requirements. (Summary of WUCIOA rules.)