Collections WUCIOA is friendlier to associations for collection purposes in several ways:


1. It gives a super-priority lien to all associations (currently only guaranteed for New Act condos).


2. It lengthens the statute of limitations on collecting unpaid assessments from three years to six for condos.


3. It allows associations to collect some attorneys’ fees from banks that don’t pay the super-priority lien within a specific time, following notice to the bank. No existing statute contains a similar provision.


4. It provides for a court-appointed receiver to collect rent from homes that are not owner occupied, even before a foreclosure lawsuit.


5. It sets a default interest rate at the maximum allowed by law. 6. It allows for non-judicial foreclosure for all communities. 7. It provides multiple collection remedies for cooperatives.


There are some drawbacks for some communities under WUCIOA:


1. WUCIOA does not provide for utility termination as a remedy for non-payment of dues. Many Old Act condos have this option, and it’s unclear whether this would be permitted under WUCIOA. We suspect it would not.


2. The Board must approve commencement of any foreclosure action.


3. Associations cannot foreclose for less than 3 months’ unpaid dues.


Given the addition of collections remedies, WUCIOA appears to be an improvement over the HOA Act and the Old Act, and perhaps even over the New Act.


Association Records With respect to association records, WUCIOA may be better for some associations but has drawbacks for others.


WUCIOA is friendlier to associations in several ways:


1. WUCIOA defines a “record” and defines what “written” and “writing” mean.


2. WUCIOA clarifies what records the association must keep and (for some records) for how long.


1 Existing statutes governing community associations include the HOA Act (RCW 64.38); the Old Act (Horizontal Property Regimes Act, RCW 64.32, governs condos created before July 1, 1990), and the New Act (Condominium Act, RCW 64.34, governs condos created on or after July 1, 1990). This article will refer to these statutes using these industry “nickname” (HOA Act, Old Act, New Act).


www.wscai.org 17


3. WUCIOA


lists records that can be withheld from


owners, including: a) Email addresses and unlisted phone numbers, b) Personal information about owners, c) Personnel and medical records, d) Other owners’ individual files, and e) Contracts in the midst of negotiation.


4. WUCIOA requires associations to keep records of actions taken by committees for the board.


5. WUCIOA allows associations to charge reasonable fees to supervise an owner’s inspection of records.


WUCIOA may be more difficult and/or may leave unanswered questions in other ways:


1. WUCIOA does not address whether emails of board members or managers are records of the association to which members are entitled. “Records” include both “tangible medium” (like paper) and “electronic transmissions.” But the “association records” provision does not specifically mention email or electronic transmissions to provide guidance on their disclosure or retention.


2. WUCIOA requires many kinds of records to be kept for seven years, including materials used for architectural approvals, budgets and financial statements, contracts, and materials relied upon to enforce the governing documents.


3. WUCIOA requires ballots for any membership vote to be kept for one year.


4. Records must be made available at the association or management office, unless owners agree otherwise.


This is just a small sample of the many issues governed by WUCIOA. The statute is in its infancy and, as with any new law, there are sure to be disagreements as to WUCIOA’s interpretation. We will be looking to the legislature and courts to provide clarity on any such ambiguities. However, even at this early stage of the game, WUCIOA may be an improvement over existing statutes for many communities.


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