Questions & Answer

The following is a list of questions that were asked by the Board and answered by the legal or collections Attorney. The Board will continue to post all questions and answers here that are asked by us or members of the community.

Question: Washington RCW's state that HOA's are required to have insurance on all common areas. Since our HOA has no parks, pools, clubhouse, etc, do we still need to have insurance?

Article I, Section 1(c) of the CC&R's defines "Common Properties" as "those areas of land shown as such on any recorded subdivision map of The Properties and intended to be devoted to the common use and enjoyment of the owners of The Properties. 'Common Properties' include all easements of way recorded on the reservation of easement, filed with the Mason County Auditor, record number 366041 on August 27th, 1979.

Question: Our Bylaws state that Board members are volunteers and don't get paid. Can a Board member be reimbursed for their time, gas or mileage when conducting HOA business?

The WA Nonprofit Corporation Act which governs the Association (RCW 24.03A) states that the Association may "reimburse reasonable expenses incurred by members, directors or officers in connection with services rendered."

Question: We are about to conduct a vote to raise dues. Do we need a quorum and do RCW's supersede our Bylaws?

RCW 64.90.525 took over in July 2018 and it outlines the required procedure for passage of budgets and levying of assessments for all plat communities. According to the statute, the Board comes up with a budget, approves it and then sends it out to the membership with notice of a "budget ratification meeting" and with the required disclosures set forth in the statute. If a majority of the membership does not attend the meeting and vote to reject the budget, the budget is ratified, and assessments can be levied according to that ratified budget. A quorum is not required at the meeting. This procedure trumps and supersedes any conflicting language in the current governing documents (Bylaws, CC&R's, etc.).

Question: One individual in the community that I spoke with says the Board cannot raise dues or conduct any votes until our 1979 CCR's and 2006 Bylaws are updated? Do we need a community vote to update to current laws.

No. The current laws supersede the conflicting provisions in the Covenants. While it would be helpful to update the Covenants to ensure they properly reflect current applicable laws, the laws still apply even if the Covenants are not updated.

Question: The same individual states that the 2018 budget ratification doesn't apply to HOA's that were formed before 2018. They claim that RCW 64-90 applies to 2018 and after and RCW 64-38 applies to ones before 2018.

This is inaccurate. While generally it is accurate that RCW 64.90 applies only to community associations formed after 2018 (or to those community associations that formally adopt RCW 64.90), RCW 64.90.080(2) is clear that the language of RCW 64.90.525 invalidates and supersedes conflicting provisions of the Covenants of a plat community in Washington.

Question: If we put a lien on a property for unpaid assessments and the property sells, who is responsible for the lien and the unpaid dues?

Assessments ae always the responsibility of the owner of the lot at the time the assessment was levied. If a lien is recorded for unpaid assessments, it is the responsibility of the title company to find that lien and ensure it is addressed during the closing process. If not, the Association loses the opportunity to collect those funds as the new owner is not responsible for them. If the lien was properly recorded and a title company failed to identify the lien, your collections attorney can advise if there is any recourse against the title company.

Questions & Answer

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