Concerning the Washington uniform common interest ownership act (Pedersen, Rivers, Mullet)

Establishes the Washington uniform common interest ownership act.

EFFECT OF CHANGES MADE BY 1ST SUBSTITUTE (Financial Institutions & Insurance Committee)
(1) Establishes a process and minimum voting requirements for an existing common interest community to elect to be governed by the newly created Washington Uniform Common Interest Ownership Act. (2) Restricts the amount of an association’s attorneys’ fees that may be recovered during a foreclosure to the lesser of the amount of assessments for the past six months or $2,000. (3) Requires a 60-day notification to a holder of a security interest that an owner of a unit is in default in payment of an assessment. (4) Removes guidance regarding how an association may apply sums paid by unit owners who are delinquent in paying assessments. (5) Clarifies that a cause of action for breach of warranty quality accrues the later of the date the unit was conveyed to the purchaser or the date any portion of the unit was completed. (6) Corrects internal references and makes technical and clarifying changes.

Retains the underlying bill with the following changes: (1) Amends section 120 of the act with respect to the opt-in procedure for amending the governing documents of an existing common interest community (CIC) to provide that the CIC will be governed by the new WUCIOA chapter, setting forth a step-by-step process regarding who can propose/request, preparation of the amendment, notices, meeting, and votes required. (2) Amends Section 318 (Lien for Sums Due Association - Enforcement) to: Add a provision that an association's lien for unpaid assessments does not affect the priority of mechanics' or material suppliers' liens to the extent that the law of this state other than WUCIOA gives priority to such liens, or the priority of liens for other assessments made by the association; clarify the priority when two or more associations have liens for assessments created at any time on the same property; strike the provision that an association must give notice required by statute, or if not specified, reasonable notice, to lienholders; strike the provision that specified the order in which associations must apply any sums paid by unit owners who are delinquent in paying assessments; and add a provision that every aspect of a collection, foreclosure, sale, or other conveyance under section 318 must be commercially reasonable. (3) Makes changes in warranty sections 415-417 of the act to: Refer to "proceedings" rather than "judicial proceedings;" use the term "disclaimer" rather than "instrument;" and strike redundant language requiring a signature by the purchaser. (4) Rewords sections 503-505 of the act regarding when current law governing CICs applies/does not apply, providing that current chapters do not apply to: CICs created after the effective date of the act or to CICs that have amended their governing documents to provide that the new WUCIOA chapter applies. Similarly rewords section 502 of the act regarding proprietary leases and the application of the Residential Landlord Tenant Act (RLTA). (5) Corrects a statutory reference to the RLTA.

Hearing Date: Thursday, February 15, 2018 -- 1:30 pm

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