BILL REQ. #:  S-1245.1 

Read first time 02/18/09.   Referred to Committee on Financial Institutions, Housing & Insurance.

     AN ACT Relating to the creation of a state homeowners' association ombudsman office; amending RCW 64.38.010; and adding new sections to chapter 64.38 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 64.38 RCW to read as follows:
     The office of the state homeowners' association ombudsman is created in the office of the attorney general for the purpose of resolving disputes between homeowners and homeowners' associations. The attorney general shall adopt rules to carry out this purpose. The attorney general shall provide cities and counties that provide dispute resolution services for homeowners' association members with funding and technical assistance.

NEW SECTION.  Sec. 2   A new section is added to chapter 64.38 RCW to read as follows:
     The ombudsman shall:
     (1) Provide information to members of homeowners' associations regarding their rights and duties under this chapter. This information must be made available on a web site maintained by the ombudsman;
     (2) Maintain a toll-free telephone number to provide information or assistance on matters relating to homeowners' associations; and
     (3) Provide assistance in resolving disputes between homeowners' associations and their members as required in section 3 of this act.

NEW SECTION.  Sec. 3   A new section is added to chapter 64.38 RCW to read as follows:
     (1) An interested party may file a complaint with the ombudsman alleging that the association has violated its duties under this chapter or its governing documents.
     (2) Upon receipt of a complaint, the ombudsman shall investigate, confer with the interested parties, and assist in efforts to resolve the dispute.
     (3) The ombudsman shall issue a preliminary order based on its findings to resolve the dispute. The preliminary order may impose fines on either party and may provide for injunctive relief.
     (4) The ombudsman may charge the complaining party a reasonable fee, not to exceed fifty dollars, for dispute resolution assistance. The ombudsman may increase the reasonable fee no more than three percent per annum.
     (5) The ombudsman and the office of the attorney general shall adopt rules necessary to implement the dispute resolution procedures under this section.

NEW SECTION.  Sec. 4   A new section is added to chapter 64.38 RCW to read as follows:
     (1) Either party involved in the dispute resolution procedures under section 3 of this act may appeal the ombudsman's preliminary finding.
     (2) The ombudsman shall establish procedures by rule to implement an appeals process that conforms to chapter 34.05 RCW.

NEW SECTION.  Sec. 5   A new section is added to chapter 64.38 RCW to read as follows:
     Cities and counties are encouraged to set up their own procedures for resolving disputes between homeowners' associations and their members. Cities and counties that choose to provide dispute resolution services to homeowners' associations and their members are eligible to receive funding and technical assistance from the office of the attorney general.

Sec. 6   RCW 64.38.010 and 1995 c 283 s 2 are each amended to read as follows:
     For purposes of this chapter:
     (1) "Homeowners' association" or "association" means a corporation, unincorporated association, or other legal entity, each member of which is an owner of residential real property located within the association's jurisdiction, as described in the governing documents, and by virtue of membership or ownership of property is obligated to pay real property taxes, insurance premiums, maintenance costs, or for improvement of real property other than that which is owned by the member. "Homeowners' association" does not mean an association created under chapter 64.32 or 64.34 RCW.
     (2) "Governing documents" means the articles of incorporation, bylaws, plat, declaration of covenants, conditions, and restrictions, rules and regulations of the association, or other written instrument by which the association has the authority to exercise any of the powers provided for in this chapter or to manage, maintain, or otherwise affect the property under its jurisdiction.
     (3) "Board of directors" or "board" means the body, regardless of name, with primary authority to manage the affairs of the association.
     (4) "Common areas" means property owned, or otherwise maintained, repaired or administered by the association.
     (5) "Common expense" means the costs incurred by the association to exercise any of the powers provided for in this chapter.
     (6) "Ombudsman" means the state homeowners' association ombudsman created under section 1 of this act.
     (7) "Residential real property" means any real property, the use of which is limited by law, covenant or otherwise to primarily residential or recreational purposes.