Condo, Co-op and HOA Requirements in Washington State

Condominiums, cooperatives, and homeowners’ associations are all types of common interest communities (CICs), also called community associations. These are community-oriented organizations supported by state law but managed privately.

CICs bring together a group of homeowners (members) who agree to shared rules and responsibilities. These are set out in a declaration of covenants, conditions, and restrictions (CC&Rs) and other governing documents such as articles of incorporation, bylaws, and policies. These documents act as a private contract that is tied to the property itself, or in the case of cooperatives, to a proprietary lease.

Members of condominiums and homeowners’ associations (HOAs) own their own real property. Members of cooperatives (co-ops) own shares in a corporation that owns the property.

• Multifamily buildings where units share horizontal and vertical walls are usually condos or co-ops.
• Single-family neighborhoods are usually HOAs (also called plat communities).
• Townhomes can be organized either as HOAs (zero-lot-line plat communities such as patio or garden homes) or as condominiums.

Under current Washington State law, CICs must be organized as a corporation or limited liability company (LLC), though some older associations remain unincorporated. All CICs collect mandatory assessments, typically monthly or annual fees—ranging from about $20 per year to more than $2,000 per month. These fees are for maintenance and repair of shared areas such as streets, lights, sewers, retention ponds, elevators, and garages, as well as administrative costs like bookkeeping, management, insurance, software, and vendor services.

The main goal of a CIC is to serve its members by:

• Evaluating costs and adopting an annual budget
• Delivering services required by law and the community’s governing documents
• Maintaining common areas and infrastructure

Most associations must also:

• Conduct an annual reserve study
• Hold an annual meeting and board elections
• Provide notice of meetings and actions
• Enforce governing documents and community rules

What is an HOA?

Homeowners’ associations (HOAs) are established to manage and maintain shared community areas and enforce community rules. This includes maintaining landscaping and community buildings, overseeing parking and architectural standards, and managing common areas such as playgrounds or clubhouses.

Most HOAs are created by a developer (declarant) as a legal requirement when the community is first formed. State law (RCW 64.90 and RCW 64.34) requires these communities to be organized as corporations or limited liability companies (LLCs). This incorporation happens during the development process and is not optional. Additional information about registering or incorporating a new association can be found here.

What are CC&Rs?

CC&Rs (Covenants, Conditions, and Restrictions) are the rules that apply to homes in a neighborhood or community association. They help keep the community well-maintained and outline what homeowners can and cannot do with their property.

1. What CC&Rs Are

CC&Rs are a set of recorded rules that apply to every home in the community. When you buy a home in an HOA or condominium, you automatically agree to follow them.

2. What They Cover

CC&Rs usually include:

• Architectural and design standards
• Landscaping and maintenance requirements
• Parking, noise, and pet rules
• Rental or short-term rental limits
• How common areas are used
• How dues (assessments) are collected
• What happens if rules are not followed

3. How They’re Enforced

The homeowners association (HOA) or condo association is responsible for enforcing CC&Rs. This may include notices, fines, or other steps allowed by the documents and state law.

4. How They Can Be Changed

Changing CC&Rs requires a vote of the homeowners. Most communities need a large majority to approve changes. Any updates must be recorded with the county to take effect.

5. Washington Laws That Apply

Depending on when the community was created, one or more state laws may apply, such as:

• The Washington Uniform Common Interest Ownership Act (RCW 64.90)
• The Homeowners’ Associations Act (RCW 64.38)
• The Condominium Act (RCW 64.34)
• The Horizontal Property Regimes Act (RCW 64.32)

Legal Authority

Condo Connections Legal Authority Matrix:

CIC Statutes

RCW 64.32	HORIZONTAL PROPERTY REGIMES ACT (CONDOMINIUMS) for condominiums created before 1990
RCW 64.34	CONDOMINIUM ACT for condominiums created after 1990 and before 7/1/18
RCW 64.38	HOMEOWNERS ASSOCIATIONS
RCW 64.90	WA UNIFORM COMMON INTEREST OWNERSHIP ACT (After July 2018) as adopted and effective for all CICs as of January 1, 2028 Note: RCWs 64.32, 64.34, and 64.38 are all repealed effective 1/1/28 and replaced by RCW 64.90 The WA UNIFORM COMMON INTEREST OWNERSHIP ACT (WUCIOA). The WUCIOA is a significant change in statutory authority and requirements for accountability and transparency that that all CICs governed by a legacy statute should evaluate and prepare to follow.

Organizational Statutes

RCW 24.06	NONPROFIT MISCELLANEOUS AND MUTUAL CORPORATIONS ACT
RCW 24.03A	WASHINGTON NONPROFIT CORPORATION ACT
RCW 23.86	COOPERATIVE ASSOCIATIONS
RCW 64.90.475	ACCOUNTS AND RECORDS - RECONCILIATION
RCW 64.34.356	SURPLUS FUNDS

Resources

Resources for Boards

Starting a Nonprofit in Washington State and Washington Nonprofit Handbook provide useful information around compliance and practices that board members and individuals dealing with non-profit boards may find useful.

BoardSource offers support for nonprofit organizations by providing resources and tools to enhance governance practices and board leadership. Note that not all material applies to CICs.

Tax Resources

WA Dept. Of Revenue (DOR)

• Nonprofits Tax Guide
• HOA Tax Guide

Internal Revenue Service (IRS)

• Homeowners’ Associations
• IRS Section 501(c)(4): Homeowners’ Associations
• 26 USC § 528 - Certain Homeowners' Associations

Other Accounting and Taxation Resources

• Schwindt & Company Treasurer’s Handbook
• Revenue Ruling 70-604 Election Guide
• Reserves as Capital Contributions
• Presentation of Contract Assets and Liabilities in ASC 606
• Homeowners’ Association Taxation Review
• 501(c)(4) Tax Exempt Homeowners’ Associations

Conflict Resolution Resources

• Handling Conflict During Board Meetings
• Boardroom Disputes - How to Manage the Good, Weather the Bad, and Prevent the Ugly
• How to resolve conflict in the boardroom
• Managing Board Conflict
• How boards manage conflict and tension
• 5 Conflict Resolution Strategies
• How to Resolve Board Disputes
• Managing Conflict: A Guide for Volunteer Boards
• Board Dispute Resolution Policy template
• Example Board Operating Agreements
• Establishing Norms for Director Behavior to Enhance Board Culture and Effectiveness
• BIFF: Quick Responses to High Conflict People, Their Hostile Emails, Personal Attacks and Social Media Meltdowns
• Our New World of Adult Bullies How to Spot Them — How to Stop Them

Academic Reading

Barnabic, D. S. (2013). The Condo Bible for Americans: Everything You Must Know Before and After Buying a Condo. Neon-Publishing Corp.

Barton, S. E., & Silverman, C. J. (Eds.). (1994). Common Interest Communities: Private Governments and the Public Interest. Institute of Governmental Studies Press.

Budd, K. (1998). Be Reasonable! How Community Associations Can Enforce Rules Without Antagonizing Residents, Going to Court, or Starting World War III. Community Associations Institute (CAI).

Callies, D. L. (2005). Common Interest Communities: An Introduction. The Urban Lawyer, 37(2), 325-326.

Carle, C. W., Kelly, A., Ratte, D., & Ziegler, L. H. (n.d.). A Tale of Two Trees: Community Engagement Opportunities Between Homeowners Associations and The City of Rosemount. Humphrey School of Public Affairs, University of Minnesota.

Castro Trognitz, L. (1999). Co-opted living: As condos and other common interest communities proliferate, so do rules and conflicts that lawyers increasingly are being asked to sort out. ABA Journal, 85(10), 54–59.

Drewes, A. (2001). Putting the "Community" Back in Common Interest Communities: A Proposal for Participation-Enhancing Procedural Review. Columbia Law Review, 101(8), 1958-1988 (Note).

Fennell, L. A. (2004). Contracting Communities. University of Illinois Law Review, 2004(4), 829-865.

Fennell, L. A. (2009). The Unbounded Home: Property Values Beyond Property Lines. Yale University Press.

Franzese, P. A. (2002). Does It Take a Village? Privatization, Patterns of Restrictiveness and the Demise of Community. Villanova Law Review, 47(3), 553-602.

French, S. F. (2005). Making Common Interest Communities Work: The Next Step. The Urban Lawyer, 37(3), 359-369.

Harer, K. (2019). CondoLaw’s 2019 handbook for community associations: A resource for Washington State condominium and homeowners’ associations. Condominium Law Group, PLLC.

Hyatt, W. S. (2003). Reinvention Redux: Continuing the Evolution of Master-Planned Communities. Real Property, Probate, and Trust Journal, 38(1), 45-58.

Johnston, J. L., & Johnston-Dodds, K. (2002). Common Interest Developments: Housing at Risk? California Research Bureau.

Martirossian, J. (2001). Decision Making in Communities: Why Groups of Smart People Sometimes Make Bad Decisions. Community Associations Institute (CAI).

McKenzie, E. (1994/1996). Privatopia: Homeowner Associations and the Rise of Residential Private Government. Yale University Press.

McKenzie, E. (2011). Beyond Privatopia: Rethinking Residential Private Government (Urban Institute Press series). Urban Institute Press.

Reichman, U. (2000). Highlights of the New Restatement (Third) of Property: Servitudes. Real Property, Probate & Trust Journal, 35(2), 225-244.

California Research Bureau. (1998). Residential common interest developments: An overview (CRB-98-006) (H. E. Roland, Author). California State Library. Sacramento, CA.

Wiseman, H. (2010). Public Communities, Private Rules. Georgetown Law Journal, 98(3), 697-756.

Winokur, J. L. (1998). Critical Assessment: The Financial Role of Community Associations. Santa Clara Law Review, 38(4), 1135-1182.