What is WUCIOA, and Will it Affect my Association?

If your Homeowners Association was created before July 1, 2018, most of the Washington Uniform Common Interest Ownership Act (WUCIOA) won’t apply to you. The only change you’ll want to be aware of relates to how your community adopts its budget. The Washington Uniform Common Interest Ownership Act (WUCIOA) will govern new condominiums and other planned communities, and the community associations and real estate cooperatives that manage them (known collectively as “common interest communities”). It is scheduled to take effect on July 1, 2018. Communities created before the bill goes into effect will still be governed primarily by existing laws. The exception: Section 326 of the WUCIOA requires that every budget for every community be ratified by the community. A budget ratification under WUCIOA would happen like this:
  1. The board of a homeowner’s association adopts a proposed budget.
  2. Within 30 days after adoption, the board provides copies of the budget to the members of the HOA along with a summary of the budget.
  3. The Board sets a meeting between fourteen and fifty days after providing the budget to the members.
  4. At the budget meeting, the members have the opportunity to vote to reject the budget.
  5. The budget is ratified unless a majority of the votes (that is, the total votes for everyone in the HOA, and not just the votes of the members who showed up to the meeting) reject the budget. Even if there is no quorum, the budget is ratified.
  6. If the budget is rejected, or if notice is not provided, the last budget to be ratified remains in effect until a new budget is ratified.
Section 326 of WUCIOA also sets specific requirements for information that must be contained in the budget summary. These requirements include projected income and common expenses, the amount of assessments per unit and the date the assessments are due, the current amount of regular assessments budgeted for contribution to the reserve account, and the current balance of the reserve funding per unit. The budget must also contain a statement of whether the association has a reserve study that meets the WUCIOA’s requirements, and how close the budget is to meeting the recommendations of the reserve study. Section 326 of WUCIOA takes the place of Sections 64.34.308(3) and (4) of the Washington Condominium Act and Sections 64.38.025(3) and (4) of the Homeowners’ Association Act. It also applies to condominiums created under RCW 64.32 and RCW 64.38. If you have questions about WUCIOA and how it might affect your community, please contact us.