H-0209.2

HOUSE BILL 1043

State of Washington
68th Legislature
2023 Regular Session
ByRepresentatives McEntire, Leavitt, and Walsh
Prefiled 12/16/22.Read first time 01/09/23.Referred to Committee on Housing.
AN ACT Relating to association records in common interest communities; and amending RCW 64.32.170, 64.34.372, and 64.38.045.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 64.32.170 and 1965 ex.s. c 11 s 5 are each amended to read as follows:
(1) The manager or board of directors, as the case may be, shall keep complete and accurate books and records of the receipts and expenditures affecting the common areas and facilities, specifying and itemizing the maintenance and repair expenses of the common areas and facilities and any other expenses incurred. Such books and records and the vouchers authorizing payments shall be available for examination by the apartment owners, their agents or attorneys, at any reasonable time or times. All books and records shall be kept in accordance with good accounting procedures and be audited at least once a year by an auditor outside of the organization.
(2)(a) The association shall keep a complete and accurate list of apartment owners. The list must include the names of the current apartment owners, addresses used by the association to communicate with them, and the number of votes allocated to each apartment.
(b) Subject to (d) and (e) of this subsection, the list of apartment owners must be made available for examination and copying by all apartment owners, holders of mortgages on the apartments, and their authorized agents as follows, unless agreed otherwise:
(i) During reasonable business hours or at a mutually convenient time and location; and
(ii) At the offices of the association or its managing agent.
(c) A right to copy the list of apartment owners under (b) of this subsection includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by an apartment owner.
(d) The association may charge a reasonable fee for producing and providing copies of the list of apartment owners and for supervising an apartment owner's inspection of the list.
(e) The list of apartment owners may be withheld from inspection and copying to the extent that it concerns:
(i) The unlisted telephone number or electronic address of any apartment owner or resident;
(ii) The address of any apartment owner or resident who is known to the association to be a participant in the address confidentiality program described in chapter 40.24 RCW or any similar program established by law;
(iii) Agreements that for good cause prohibit disclosure; or
(iv) Information the disclosure of which would violate a law or a court order.
(f) Information provided pursuant to this subsection (2) may not be used for any commercial purposes.
Sec. 2. RCW 64.34.372 and 1992 c 220 s 19 are each amended to read as follows:
(1) The association shall keep financial records sufficiently detailed to enable the association to comply with RCW 64.34.425. All financial and other records of the association, including but not limited to checks, bank records, and invoices, are the property of the association, but shall be made reasonably available for examination and copying by the manager of the association, any unit owner, or the owner's authorized agents. At least annually, the association shall prepare, or cause to be prepared, a financial statement of the association in accordance with generally accepted accounting principles. The financial statements of condominiums consisting of ((fifty))50 or more units shall be audited at least annually by a certified public accountant. In the case of a condominium consisting of fewer than ((fifty))50 units, an annual audit is also required but may be waived annually by unit owners other than the declarant of units to which ((sixty))60 percent of the votes are allocated, excluding the votes allocated to units owned by the declarant.
(2) The funds of an association shall be kept in accounts in the name of the association and shall not be commingled with the funds of any other association, nor with the funds of any manager of the association or any other person responsible for the custody of such funds. Any reserve funds of an association shall be kept in a segregated account and any transaction affecting such funds, including the issuance of checks, shall require the signature of at least two persons who are officers or directors of the association.
(3)(a) The association shall keep a complete and accurate list of unit owners. The list must include the names of the current unit owners, addresses used by the association to communicate with them, and the number of votes allocated to each unit.
(b) Subject to (d) and (e) of this subsection, the list of unit owners must be made available for examination and copying by all unit owners, holders of mortgages on the units, and their authorized agents as follows, unless agreed otherwise:
(i) During reasonable business hours or at a mutually convenient time and location; and
(ii) At the offices of the association or its managing agent.
(c) A right to copy the list of unit owners under (b) of this subsection includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by a unit owner.
(d) An association may charge a reasonable fee for producing and providing copies of the list of unit owners and for supervising a unit owner's inspection of the list.
(e) The list of unit owners may be withheld from inspection and copying to the extent that it concerns:
(i) The unlisted telephone number or electronic address of any unit owner or resident;
(ii) The address of any unit owner or resident who is known to the association to be a participant in the address confidentiality program described in chapter 40.24 RCW or any similar program established by law;
(iii) Agreements that for good cause prohibit disclosure; or
(iv) Information the disclosure of which would violate a law or a court order.
(f) Information provided pursuant to this subsection (3) may not be used for any commercial purposes.
Sec. 3. RCW 64.38.045 and 1995 c 283 s 9 are each amended to read as follows:
(1) The association or its managing agent shall keep financial and other records sufficiently detailed to enable the association to fully declare to each owner the true statement of its financial status. All financial and other records of the association, including but not limited to checks, bank records, and invoices, in whatever form they are kept, are the property of the association. Each association managing agent shall turn over all original books and records to the association immediately upon termination of the management relationship with the association, or upon such other demand as is made by the board of directors. An association managing agent is entitled to keep copies of association records. All records which the managing agent has turned over to the association shall be made reasonably available for the examination and copying by the managing agent.
(2) ((All records of the association, including the names and addresses of owners and other occupants of the lots, shall be available for examination by all owners, holders of mortgages on the lots, and their respective authorized agents on reasonable advance notice during normal working hours at the offices of the association or its managing agent. The association shall not release the unlisted telephone number of any owner. The association may impose and collect a reasonable charge for copies and any reasonable costs incurred by the association in providing access to records.))The association shall keep a complete and accurate list of lot owners. The list must include the names of the current lot owners, addresses used by the association to communicate with them, and the number of votes allocated to each lot.
(3) At least annually, the association shall prepare, or cause to be prepared, a financial statement of the association. The financial statements of associations with annual assessments of ((fifty thousand dollars))$50,000 or more shall be audited at least annually by an independent certified public accountant, but the audit may be waived if ((sixty-seven))67 percent of the votes cast by owners, in person or by proxy, at a meeting of the association at which a quorum is present, vote each year to waive the audit.
(4) The funds of the association shall be kept in accounts in the name of the association and shall not be commingled with the funds of any other association, nor with the funds of any manager of the association or any other person responsible for the custody of such funds.
(5)(a) Subject to (c) and (d) of this subsection, all association records, including the list of lot owners, must be made available for examination and copying by all owners, holders of mortgages on the lots, and their respective authorized agents as follows, unless agreed otherwise:
(i) During reasonable business hours or at a mutually convenient time and location; and
(ii) At the offices of the association or its managing agent.
(b) A right to copy records under this section includes the right to receive copies by photocopying or other means, including through an electronic transmission if available upon request by a lot owner.
(c) An association may charge a reasonable fee for producing and providing copies of any records under this section and for supervising a lot owner's inspection.
(d) The list of lot owners may be withheld from inspection and copying to the extent that it concerns:
(i) The unlisted telephone number or electronic address of any lot owner or resident;
(ii) The address of any lot owner or resident who is known to the association to be a participant in the address confidentiality program described in chapter 40.24 RCW or any similar program established by law;
(iii) Agreements that for good cause prohibit disclosure; or
(iv) Information the disclosure of which would violate a law or a court order.
(e) Information provided pursuant to this section may not be used for any commercial purposes.
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