Committee hears small‑association fixes to WACOIA aimed at easing compliance for middle housing and small CICs

Senate Housing Committee members received a staff briefing and supportive testimony on Substitute House Bill 2,354, which proposes four targeted changes to the Washington Uniform Common Interest Ownership Act (WACOIA) intended to reduce disproportionate burdens on small common‑interest communities (CICs) and to clarify obligations for electric vehicle charging stations and heat pumps.

Melissa Van Gorkam explained the bill would (1) disallow governing documents from varying from WACOIA on which owner bears maintenance costs for EV charging and heat pumps when those devices exclusively serve an owner’s unit; (2) update the test for small communities (no more than 50 units) so that an annual average assessment may not exceed $1,000 if the community amends its declaration; (3) exempt middle‑housing CICs from reserve study and annual update requirements when no on‑site reserve component is required for wastewater or water protection; and (4) increase the audit threshold that triggers a CPA audit from $50,000 to $100,000, with an option for owner waiver when assessments fall below that threshold.

Margene Knight, a homeowner and member of the Washington State Community Associations Institute Legislative Action Committee, testified in support and said the bill better recognizes the realities of smaller, volunteer‑run associations while preserving financial accountability by keeping audits for larger associations in place.

Representative Julie Reed framed the bill as a trailer to prior WACOIA work and said the technical fixes will aid middle‑housing implementation for CICs. The committee closed public hearing on HB 2,354 and moved the matter to executive sessions and further consideration; no final committee action on the bill was recorded in open session Feb. 20.