New 2023 Laws Impact Hoa & Coa Assessment Lien Foreclosure Procedures (RCW 64.34.364, 64.38.100, 64.90.485 & 64.32.200)

The 2023 Washington Legislature passed amendments to the statutes governing the collection and enforcement of assessments and, in particular, the foreclosure of assessment liens by all HOAs (single family residence communities) and COAs (condominium communities). These amendments included, among other provisions:

1. Pre-Foreclosure Notices. Associations must transmit 2 separate statutory notices at specific time intervals to delinquent owners prior to commencing foreclosure proceedings.

2. Minimum Delinquent Amount. There must be at least the greater of the following amounts due prior to commencement of any lien foreclosure action: (a) 3 months of assessments or (b) $2,000.

Such minimum amount due must also have been due and owing for at least 180 days prior to commencement of the lien foreclosure action with such time period to be reduced to 90 days commencing 1/1/25.

3. Very Specific Notice And Timing Requirements. These revisions require very specific content in the notices and very specific timing for each step in the lien collection/foreclosure process.

Thus, HOA and COA Boards, Property Managers and attorneys will henceforth need to pay special attention to these requirements when taking enforcement action regarding delinquent assessments.

4. Different Effective Dates. Some of the newly adopted provisions apply currently and some will not apply until 1/1/25 adding some additional complexity to the procedural requirements – see, for example, the time periods referenced in paragraph 2 above.

The Washington legislature has very active in recent years adopting and revising laws that impact HOA and COA communities requiring numerous changes in how Associations are to conduct their affairs. If you have questions regarding these specific new laws or other HOA or COA legal issues, we can help.