CERTIFICATION OF ENROLLMENT

 

                   ENGROSSED HOUSE BILL 2009

 

 

 

 

 

                        53rd Legislature

                      1993 Regular Session

Passed by the House March 15, 1993

  Yeas 97   Nays 0

 

 

 

Speaker of the

       House of Representatives

 

Passed by the Senate April 13, 1993

  Yeas 40   Nays 4

               CERTIFICATE

 

I, Alan Thompson, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 2009 as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

President of the Senate

                               Chief Clerk

 

 

Approved Place Style On Codes above, and Style Off Codes below.

                                     FILED

          

 

 

Governor of the State of Washington

                        Secretary of State

                       State of Washington


                              _______________________________________________

 

                                             ENGROSSED HOUSE BILL 2009

                              _______________________________________________

 

                                                       Passed Legislature - 1993 Regular Session

 

 

State of Washington                              53rd Legislature                             1993 Regular Session

 

By Representatives J. Kohl, Wineberry, G. Cole and Holm

 

Read first time 02/19/93.  Referred to Committee on Trade, Economic Development & Housing.

 

Including condominiums in parking and business improvement areas.


          AN ACT Relating to parking and business improvement areas; and amending RCW 35.87A.010, 35.87A.020, 35.87A.030, 35.87A.050, 35.87A.060, 35.87A.080, 35.87A.090, 35.87A.100, 35.87A.140, 35.87A.170, 64.34.304, and 64.34.010.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

        Sec. 1.  RCW 35.87A.010 and 1985 c 128 s 1 are each amended to read as follows:

          To aid general economic development and neighborhood revitalization, and to facilitate ((merchant and business)) the cooperation of merchants, businesses, and residential property owners which assists trade, economic viability, and liveability, the legislature hereby authorizes all counties and all incorporated cities and towns, including unclassified cities and towns operating under special charters:

          (1) To establish, after a petition submitted by the operators responsible for 60 percent of the assessments by businesses and multifamily residential or mixed-use projects within the area, parking and business improvement areas, hereafter referred to as area or areas, for the following purposes:

          (a) The acquisition, construction or maintenance of parking facilities for the benefit of the area;

          (b) Decoration of any public place in the area;

          (c) Promotion of public events which are to take place on or in public places in the area;

          (d) Furnishing of music in any public place in the area;

          (e) Providing professional management, planning, and promotion for the area, including the management and promotion of retail trade activities in the area; or

          (f) Providing maintenance and security for common, public areas.

          (2) To levy special assessments on all businesses and multifamily residential or mixed-use projects within the area and specially benefited by a parking and business improvement area to pay in whole or in part the damages or costs incurred therein as provided in this chapter.

 

        Sec. 2.  RCW 35.87A.020 and 1971 ex.s. c 45 s 2 are each amended to read as follows:

          Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Business" ((as used in this chapter)) means all types of business, including professions.

          (2) "Legislative authority" ((as used in this chapter)) means the legislative authority of any city or town including unclassified cities or towns operating under special charters or the legislative authority of any county.

          (3) "Multifamily residential or mixed-use project" means any building or buildings containing four or more residential units or a combination of residential and commercial units, whether title to the entire property is held in single or undivided ownership or title to individual units is held by owners who also, directly or indirectly through an association, own real property in common with the other unit owners.

          (4) "Residential operator" means the owner or operator of a multifamily residential or mixed-use project if title is held in single or undivided ownership, or, if title is held in a form of common interest ownership, the association of unit owners, condominium association, homeowners association, property owners association, or residential cooperative corporation.

 

        Sec. 3.  RCW 35.87A.030 and 1971 ex.s. c 45 s 3 are each amended to read as follows:

          For the purpose of establishing a parking and business improvement area, an initiation petition may be presented to the legislative authority having jurisdiction of the area in which the proposed parking and business improvement area is to be located or the legislative authority may by resolution initiate a parking and business improvement area.  The initiation petition or resolution shall contain the following:

          (1) A description of the boundaries of the proposed area;

          (2) The proposed uses and projects to which the proposed special assessment revenues shall be put and the total estimated cost thereof;

          (3) The estimated rate of levy of special assessment with a proposed breakdown by class of business and multifamily residential or mixed-use project if such classification is to be used.

          The initiating petition shall also contain the signatures of the persons who operate businesses and residential operators in the proposed area which would pay fifty percent of the proposed special assessments.

 

        Sec. 4.  RCW 35.87A.050 and 1971 ex.s. c 45 s 5 are each amended to read as follows:

          Notice of a hearing held under the provisions of this chapter shall be given by:

          (1) One publication of the resolution of intention in a newspaper of general circulation in the city; and

          (2) Mailing a complete copy of the resolution of intention to each business and multifamily residential or mixed-use project in the proposed, or established, area.  Publication and mailing shall be completed at least ten days prior to the time of the hearing.

 

        Sec. 5.  RCW 35.87A.060 and 1971 ex.s. c 45 s 6 are each amended to read as follows:

          Whenever a hearing is held under this chapter, the legislative authority shall hear all protests and receive evidence for or against the proposed action.  The legislative authority may continue the hearing from time to time.  Proceedings shall terminate if protest is made by businesses and residential operators in the proposed area which would pay a majority of the proposed special assessments.

 

        Sec. 6.  RCW 35.87A.080 and 1985 c 128 s 2 are each amended to read as follows:

          For purposes of the special assessments to be imposed pursuant to this chapter, the legislative authority may make a reasonable classification of businesses and multifamily residential or mixed-use projects, giving consideration to various factors such as business and occupation taxes imposed, square footage of the business, number of employees, gross sales, or any other reasonable factor relating to the benefit received, including the degree of benefit received from parking.  Whenever it is proposed that a parking and business improvement area provide more than one of the purposes listed in RCW 35.87A.010, special assessments may be imposed in a manner that measures benefit from each of the separate purposes, or any combination of the separate purposes.  Special assessments shall be imposed and collected annually, or on another basis specified in the ordinance establishing the parking and business improvement area.

 

        Sec. 7.  RCW 35.87A.090 and 1971 ex.s. c 45 s 9 are each amended to read as follows:

          The special assessments need not be imposed on different classes of business and multifamily residential or mixed-use projects, as determined pursuant to RCW 35.87A.080, on the same basis or the same rate((:  PROVIDED, HOWEVER, That)).  The special assessments imposed for the purpose of the acquisition, construction or maintenance of parking facilities for the benefit of the area shall be imposed on the basis of benefit determined by the legislative authority after giving consideration to the total cost to be recovered from the businesses and multifamily residential or mixed-use projects upon which the special assessment is to be imposed, the total area within the boundaries of the parking and business improvement area, the assessed value of the land and improvements within the area, the total business volume generated within the area and within each business, and such other factors as the legislative authority may find and determine to be a reasonable measure of such benefit.

 

        Sec. 8.  RCW 35.87A.100 and 1971 ex.s. c 45 s 10 are each amended to read as follows:

          If the legislative authority, following the hearing, decides to establish the proposed area, it shall adopt an ordinance to that effect.  This ordinance shall contain the following information:

          (1) The number, date and title of the resolution of intention pursuant to which it was adopted;

          (2) The time and place the hearing was held concerning the formation of such area;

          (3) The description of the boundaries of such area;

          (4) A statement that the businesses and multifamily residential or mixed-use projects in the area established by the ordinance shall be subject to the provisions of the special assessments authorized by RCW 35.87A.010;

          (5) The initial or additional rate or levy of special assessment to be imposed with a breakdown by classification of business and multifamily residential or mixed-use project, if such classification is used; and

          (6) A statement that a parking and business improvement area has been established.

          (7) The uses to which the special assessment revenue shall be put((:  PROVIDED, HOWEVER, That such)).  Uses shall conform to the uses as declared in the initiation petition presented pursuant to RCW 35.87A.030.

 

        Sec. 9.  RCW 35.87A.140 and 1971 ex.s. c 45 s 14 are each amended to read as follows:

          Changes may be made in the rate or additional rate of special assessment as specified in the ordinance establishing the area, by ordinance adopted after a hearing before the legislative authority.

          The legislative authority shall adopt a resolution of intention to change the rate or additional rate of special assessment at least fifteen days prior to the hearing required by this section.  This resolution shall specify the proposed change and shall give the time and place of the hearing((:  PROVIDED, That)).  Proceedings to change the rate or impose an additional rate of special assessments shall terminate if protest is made by businesses or multifamily residential or mixed-use projects in the proposed area which would pay a majority of the proposed increase or additional special assessments.

 

        Sec. 10.  RCW 35.87A.170 and 1971 ex.s. c 45 s 17 are each amended to read as follows:

          Businesses or multifamily residential or mixed-use projects established after the creation of an area within the area may be exempted from the special assessments imposed pursuant to this chapter for a period not exceeding one year from the date they commenced business in the area.

 

        Sec. 11.  RCW 64.34.304 and 1990 c 166 s 3 are each amended to read as follows:

          (1) Except as provided in subsection (2) of this section, and subject to the provisions of the declaration, the association may:

          (a) Adopt and amend bylaws, rules, and regulations;

          (b) Adopt and amend budgets for revenues, expenditures, and reserves, and impose and collect assessments for common expenses from unit owners;

          (c) Hire and discharge or contract with managing agents and other employees, agents, and independent contractors;

          (d) Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more unit owners on matters affecting the condominium;

          (e) Make contracts and incur liabilities;

          (f) Regulate the use, maintenance, repair, replacement, and modification of common elements;

          (g) Cause additional improvements to be made as a part of the common elements;

          (h) Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property, but common elements may be conveyed or subjected to a security interest only pursuant to RCW 64.34.348;

          (i) Grant easements, leases, licenses, and concessions through or over the common elements and petition for or consent to the vacation of streets and alleys;

          (j) Impose and collect any payments, fees, or charges for the use, rental, or operation of the common elements, other than limited common elements described in RCW 64.34.204 (2) and (4), and for services provided to unit owners;

          (k) Impose and collect charges for late payment of assessments pursuant to RCW 64.34.364(((10)))(13) and, after notice and an opportunity to be heard by the board of directors or by such representative designated by the board of directors and in accordance with such procedures as provided in the declaration or bylaws or rules and regulations adopted by the board of directors, levy reasonable fines in accordance with a previously established schedule thereof adopted by the board of directors and furnished to the owners for violations of the declaration, bylaws, and rules and regulations of the association;

          (l) Impose and collect reasonable charges for the preparation and recording of amendments to the declaration, resale certificates required by RCW 64.34.425, and statements of unpaid assessments;

          (m) Provide for the indemnification of its officers and board of directors and maintain directors' and officers' liability insurance;

          (n) Assign its right to future income, including the right to receive common expense assessments, but only to the extent the declaration provides;

          (o) Join in a petition for the establishment of a parking and business improvement area, participate in the rate payers' board or other advisory body set up by the legislative authority for operation of a parking and business improvement area, and pay special assessments levied by the legislative authority on a parking and business improvement area encompassing the condominium property for activities and projects which benefit the condominium directly or indirectly;

          (p) Exercise any other powers conferred by the declaration or bylaws;

          (((p))) (q) Exercise all other powers that may be exercised in this state by the same type of corporation as the association; and

          (((q))) (r) Exercise any other powers necessary and proper for the governance and operation of the association.

          (2) The declaration may not impose limitations on the power of the association to deal with the declarant which are more restrictive than the limitations imposed on the power of the association to deal with other persons.

 

        Sec. 12.  RCW 64.34.010 and 1992 c 220 s 1 are each amended to read as follows:

          (1) This chapter applies to all condominiums created within this state after July 1, 1990.  RCW 64.34.040 (separate titles and taxation), RCW 64.34.050 (applicability of local ordinances, regulations, and building codes), RCW 64.34.060 (condemnation), RCW 64.34.208 (construction and validity of declaration and bylaws), RCW 64.34.212 (description of units), RCW 64.34.304­(1)(a) through (f) and (k) through (((q))) (r) (powers of unit owners' association), RCW 64.34.308(1) (board of directors and officers), RCW 64.34.340 (votingCproxies), RCW 64.34.344 (tort and contract liability), RCW 64.34.354 (notification on sale of unit), RCW 64.34.360(3) (common expensesCassessments), RCW 64.34.364 (lien for assessments), RCW 64.34.372 (association records), RCW 64.34.425 (resales of units), RCW 64.34.455 (effect of violation on rights of action; attorney's fees), and RCW 64.34.020 (definitions) to the extent necessary in construing any of those sections, apply to all condominiums created in this state before July 1, 1990; but those sections apply only with respect to events and circumstances occurring after July 1, 1990, and do not invalidate or supersede existing, inconsistent provisions of the declaration, bylaws, or survey maps or plans of those condominiums.

          (2) The provisions of chapter 64.32 RCW do not apply to condominiums created after July 1, 1990, and do not invalidate any amendment to the declaration, bylaws, and survey maps and plans of any condominium created before July 1, 1990, if the amendment would be permitted by this chapter.  The amendment must be adopted in conformity with the procedures and requirements specified by those instruments and by chapter 64.32 RCW.  If the amendment grants to any person any rights, powers, or privileges permitted by this chapter which are not otherwise provided for in the declaration or chapter 64.32 RCW, all correlative obligations, liabilities, and restrictions in this chapter also apply to that person.

          (3) This chapter does not apply to condominiums or units located outside this state.

          (4) RCW 64.34.400 (applicabilityCwaiver), RCW 64.34.405 (liability for public offering statement requirements), RCW 64.34.410 (public offering statementCgeneral provisions), RCW 64.34.415 (public offering state­mentCconversion condominiums), RCW 64.34.420 (purchaser's right to cancel), RCW 64.34.430 (escrow of deposits), RCW 64.34.440 (conversion condominiumsCnoticeCtenants), and RCW 64.34.455 (effect of violations on rights of actionCattorney's fees) apply with respect to all sales of units pursuant to purchase agreements entered into after July 1, 1990, in condominiums created before July 1, 1990, in which as of July 1, 1990, the declarant or an affiliate of the declarant owns or had the right to create at least ten units constituting at least twenty percent of the units in the condominium.

 


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