July 16, 2026

Washington resets the rules for condos and common interest communities

McCarthy

Washington's common interest community laws are undergoing their most significant overhaul in decades. Beginning Jan. 1, 2028, every existing condominium, cooperative, homeowners' association, and planned community in the state will be governed by a single statute: the Washington Uniform Common Interest Ownership Act (WUCIOA). This shift replaces the longstanding patchwork of separate statutes with a unified legal framework, fundamentally reshaping the rules relating to governance and operation of existing communities.

For developers, owners, and investors, this change establishes a clear transition timeline. Existing communities will not need to be recreated, but any provisions in their governing documents that conflict with WUCIOA will become unenforceable and must be amended. That makes early planning critical. The move to a single set of rules promises greater consistency and predictability across projects, but it also creates a near term compliance burden as the 2028 deadline approaches.

As part of this broader shift to a unified framework, the Legislature has also enacted changes that directly affect how new condominium projects are conceived and delivered. Nowhere is that more evident than in the treatment of condominium construction risk, where recent reforms are beginning to address long-standing barriers to development.

The central focus of these reforms is the introduction and expansion of an alternative to Washington's traditional condominium implied warranty regime, which has long been viewed as a barrier to condominium development. Historically, the implied warranty standards created significant exposure and litigation risk. Recent legislation now allows developers to opt out of those warranties if they provide an express, insured warranty that meets statutory requirements. As of June 2026, this option applies to condominium buildings containing 12 or fewer units and four or fewer stories.

This framework creates a more predictable risk environment. Developers can rely on third party warranty programs with defined coverage periods rather than litigation driven standards based on subjective concepts. The eligibility criteria also present a practical opportunity. Because the requirements apply on a building by building basis, larger projects may still qualify if composed of a series of smaller buildings that meet the unit and height limits. For many developers focused on townhomes, stacked flats, and smaller scale ownership housing, this expansion represents a meaningful shift in condominium feasibility.

At the same time, the Legislature has created exemptions from some or all of WUCIOA for smaller developments while introducing new areas of uncertainty. First, plat communities of 50 or fewer units where the annual assessments cannot exceed $1,000 per unit are exempt from certain provisions of WUCIOA, including the requirement to deliver a public offering statement. Second, plat communities consisting of six or fewer units that are compatible with single-family housing (e.g., low rise townhomes, stacked flats and other multi-unit buildings) where the annual assessments cannot exceed $1,000 per unit are now exempt from WUCIOA. These changes are intended to reduce regulatory and compliance burdens, but they also reduce or eliminate statutory protections and leave many key issues governed by common law rather than a comprehensive statutory framework. This will create potential uncertainty for developers, lenders, and buyers. Developers and investors will need to evaluate how these reduced protections affect risk, financing, and market expectations.

Recent legislation also introduces significant changes to community governance and operations. Voting and meeting procedures have been standardized, including expanded use of remote participation and clearer requirements for transparency. Boards are subject to new rules governing conflicts of interest, emergency powers, and the restoration of owner rights. These changes are designed to create uniformity and predictability, but they also increase the complexity of compliance and potential liability exposure for associations.

Associations also face increasing limits on their ability to regulate owner behavior, particularly in areas tied to environmental and energy policy. Associations generally may not prohibit the installation of heat pumps or electric vehicle chargers and may only impose reasonable restrictions that do not make these improvements impractical or prohibitively expensive. Similar protections now apply to drought tolerant landscaping, pollinator habitat, and wildfire resistant building materials.

Changes affecting transactions are equally important. Resale certificate requirements have been expanded to require more comprehensive disclosures while limiting the ability of associations to charge fees. Buyers may now waive the resale certificate in certain circumstances where the association is nonresponsive, addressing a recurring issue in distressed or inactive communities. At the same time, those preparing resale certificates are subject to a duty of reasonable care, increasing potential exposure for associations and managers.

Associations also face new operational obligations. They must respond to written inquiries from owners within defined timeframes, increasing compliance burdens and the risk of disputes. In addition, associations now have broader authority to invest reserve funds, including in certain types of securities, subject to fiduciary standards that require prudent decision making.

Taken together, these legislative changes reflect an effort to balance consumer protection with development feasibility. For developers, the most significant implications are the 2028 transition to a unified statutory framework and the expanded opportunity to manage condominium risk through express insured warranties. For owners and investors, the result is a more standardized but more complex governance environment, with expanded rights coupled with increased operational obligations.

As WUCIOA continues to evolve, early planning and careful structuring of projects, governing documents, and warranty strategies will be essential to managing risk and capturing opportunity in Washington's changing real estate landscape.

Joe McCarthy is a real estate attorney at Stoel Rives LLP with extensive experience in common interest community law; for more information on how these changes may impact projects or portfolios, contact Joe at joseph.mccarthy@stoel.com.