SB 5129: What it Means for HOAs, Homeowners, and the Future of Common Interest Communities

In recent years, the governance of Washington’s common interest communities (CICs) has become a growing concern for both lawmakers and residents. To address this concern, the state enacted the Washington Uniform Common Interest Ownership Act (WUCIOA) in 2018, establishing modern standards for how common interest communities (CICs) should operate.

However, the law only applied to communities formed after its passage and to existing communities that chose to opt in, leaving many older communities largely exempt until January 1, 2028. This led to a fragmented system of inconsistent standards across the state. To address these disparities sooner, the legislature passed Senate Bill 5129 (SB 5129), which begins taking effect July 27, 2025, with full implementation by January 1, 2026.

What is SB 5129?

SB 5129 is a law that accelerates the application of WUCIOA provisions to CICs, modifies key provisions of WUCIOA, and extends WUCIOA’s reach to smaller communities that were previously exempt.

WUCIOA Provision Changes

Below is a chart outlining WUCIOA provision changes that will apply to all CICs: 

WUCIOA Provision Changes Applicable to All CICs

Corresponding RCWs

Meetings:

  • Unit owners can no longer amend rules for holding meetings via phone or video.
  • Boards must vote verbally and all participants must have the option to join by phone.
  • Boards must allow at least 15 minutes for owner comments before voting on agenda items.
  • For unforeseen events or urgent matters, notice must be given at least 7 days in advance using electronic communication.
  •  RCW 64.90.445

Voting:

  • Ballots for board elections must include a space for write-in candidates.
  • The requirement for secret ballots in votes to amend declarations for reallocating common elements is removed.
  • Secret ballots must be opened and counted publicly or results reviewed and recorded if submitted electronically.
  • Current board members and candidates are prohibited from handling or counting secret ballots.
  • RCW 64.90.455

Management:

  • Starting January 1, 2026, associations may charge utility costs based on provider rates when such costs are common expenses.
  • Approval for EV charging stations can't be required in certain developments unless installed on common elements or using shared power.
  • Owners of EV chargers or heat pumps serving only their units must cover inspection costs.
  • Boards cannot unreasonably deny requests to install heat pumps on common elements.
  • Associations or developers can agree on maintenance responsibilities for EV chargers and heat pumps.
  • Associations must offer at least one no-fee method for assessment payments.
  • RCW 64.90.480
  • RCW 64.90.513
  • RCW 64.90.580

Reserve Funds:

  • Associations must generally invest reserve funds in interest-bearing accounts at U.S.-regulated financial institutions. Boards may also invest in low-risk options like money market funds, CDs, or U.S. Treasury securities.
  • If reserves exceed $250,000, up to 50% may be invested in other securities. With 75% owner approval, up to 100% can be invested.
  • All reserve fund disbursements (except transfers between accounts) require two officer/director signatures and supporting documentation.
  • RCW 64.90.535

Protection of Purchasers:

  • A buyer can waive the receipt of a resale certificate if it's unavailable due to specific reasons, such as: the association not providing it within 10 days of request and payment; the seller stating there's no HOA or assessments; the seller owning the unit for at least a year with no HOA activity; or the seller making three good faith attempts to obtain it without success.
  • If the resale certificate is delivered five days or less before closing, the buyer may cancel the contract or extend the closing date.
  • RCW 64.90.640

Extension of WUCIOA Provisions to Smaller Communities

Prior to SB 5129, plat and miscellaneous communities were automatically exempt from most WUCIOA provisions if they had 12 or fewer units and annual assessments of $300 or less per unit. (A miscellaneous community refers to a common interest community that is not classified as a condominium, cooperative, or plat community, but where units were lawfully created under Chapter 58.17 RCW—Washington’s Subdivision Act.)

Communities that met these criteria were only required to comply with the following 3 provisions: RCW 64.90.020 (separate taxation and classification of units as real property), RCW 64.90.025 (equal treatment under local building and land use laws regardless of ownership type), and RCW 64.90.030 (procedures and compensation rules related to condemnation and eminent domain). SB 5129 significantly expands both the exemption thresholds and applicable WUCIOA provisions. The thresholds increased to 50 or fewer units and annual assessments of $1,000 or less per unit.

The chart below outlines the additional WUCIOA provisions that will now apply to these communities: 

WUCIOA Provisions Now Applicable to CICs with 50 or Less Units & $1K or Less in Annual Assessments per Unit: 

Corresponding RCWs

Definitions, Applicability, and Other General Provisions:

  • Covers titles, taxation, applicability of local ordinances, eminent domain, unconscionable agreements, obligation of good faith, remedies, covenants, and other general provisions.
  • RCW 64.90.010 through 64.90.115

Creation, Alteration, and Termination of CICs:

  • Covers unit boundaries, declarations, leaseholds, common elements, subdivisions/combination of units, easements, terminations, accessory dwelling units, and compliance with middle housing requirements.
  • RCW 64.90.210
  • RCW 64.90.225 through 64.90.245
  • RCW 64.90.255 through 64.90.265
  • RCW 64.90.280 through 64.90.290
  • RCW 64.90.300
  • RCW 64.90.340 through 64.90.360

Management:

  • Covers the creation and operation of HOAs, including governance documents, records, notices, board meetings, voting and elections, financial management (assessments, budgets, reserve accounts, liens), common element conveyance, emergency powers, EV charging, heat pumps, tenant screening, occupancy limits, and rules on adult family homes.
  • RCW 64.90.400 through 64.90.420
  • RCW 64.90.435
  • RCW 64.90.445 through 64.90.455
  • RCW 64.90.465
  • RCW 64.90.480 through 64.90.495
  • RCW 64.90.502 through 64.90.505
  • RCW 64.90.510 through 64.90.585

Protection of Purchasers:

  • Covers resale certificates and enforcement of rights and obligations under WUCIOA, including attorney fee recovery and alternative dispute resolution.
  • RCW 64.90.640
  • RCW 64.90.685

Takeaway

SB 5129 marks a major step in how Washington regulates CICs. By modifying key WUCIOA provisions and expanding its reach, the law brings long-overdue consistency and modernization to HOA operations statewide. While it may take some adjustment, the long-term benefits of SB 5129 are clear: stronger communities, better-managed associations, and homeowners with greater influence.

If you believe these changes may affect your community, please contact Angela Hill for professional guidance regarding your responsibilities and the appropriate next steps.

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  • Angela A. Hill
    Partner

    As former in-house counsel to a real estate development company, Angela brings a practical and business-focused mindset to her work. She is recognized by clients for her efficiency, effectiveness, and creative solutions as well as ...

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