October 2026 update – Takes full effect December 31, 2027
What is WUCIOA?
The Washington Uniform Common Interest Ownership Act, codified as RCW 64.90, is a comprehensive legal framework enacted to modernize and unify the governance of condominiums, homeowners associations (HOAs), cooperatives, and other common interest communities across Washington State.
Originally passed in 2018 and significantly expanded in 2024, WUCIOA’s intent is to promote transparency, accountability, and fairness in community association operations by establishing clear standards for budgeting, meetings, records access, reserve funding, disclosures, and owner rights. Its key provisions include mandatory budget ratification, resale certificate requirements, open board meetings, member voting protocols, and guidelines for the installation of energy-efficient improvements such as electric vehicle chargers and heat pumps.
The ultimate goal of WUCIOA is to ensure consistent, equitable governance across all communities, regardless of size or formation date, while safeguarding homeowner interests and strengthening community engagement.
Whether your HOA is professionally managed or self-managed (especially if it is self managed!) You should be asking your board representatives what steps they are taking to make sure your HOA will be in compliance by the end of 2028.
- The Impact: If your condo board has not actively updated its governing documents to align with WUCIOA before your sale in 2027, the association risks falling into legal non-compliance on January 1, 2028. Buyers and real estate attorneys in 2027 may shy away from buildings that have not yet “opted in” or begun amending their bylaws, fearing future disputes, invalid budgets, or sudden special assessments.
- The Impact: Coinciding with this, Fannie Mae and Freddie Mac are raising their building financial standards. For loans dated on or after January 4, 2027, condo associations must allocate at least 15% of their annual operating budget to reserves (up from 10%) to qualify for standard conventional financing. If your building’s reserve study or budget falls short, buyers will struggle to secure a mortgage, drastically reducing your pool of qualified applicants.
- The Impact: The resale certificate requires the association to disclose meticulous records, including the last 12 months of board meeting minutes and explicit details on insurance and lawsuits. If your association uses the wrong or outdated forms, or fails to provide proper documentation, the buyer is legally granted an automatic 5-day rescission right to back out of the purchase contract and reclaim their earnest money.
- The Impact: Associations must now maintain master property insurance that covers both common elements and all individual units. They are also required to carry fidelity bonds. These mandatory coverage bumps, alongside the 15% reserve requirement, mean many associations will raise monthly dues or issue special assessments throughout 2027 to cover compliance costs—making the condo less affordable to prospective buyers.
Note that the changes making it more difficult for buyers to get a loan will also impact you if you want to refinance your mortgage.
Karen Lavallee
lavallee@windermere.com
206/459.6737
Cori Roed
cori@windermere.com
206/355.3786
