H-4848              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1329

                        _______________________________________________

                                                                            C 192 L 88

State of Washington                              50th Legislature                              1988 Regular Session

By House Committee on Judiciary (originally sponsored by Representatives Crane, Brough, Sutherland, Lewis, Heavey, Padden, Nutley, Peery and Hargrove)

Read first time 2/5/88.

AN ACT Relating to homesteads; and amending RCW 6.13.080 and 64.32.200.

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

        Sec. 1.  Section 1, chapter 10, Laws of 1982 as last amended by section 208, chapter 442, Laws of 1987 and RCW 6.13.080 are each amended to read as follows:

          The homestead exemption is not available against an execution or forced sale in satisfaction of judgments obtained:

          (1) On debts secured by mechanic's, laborer's, materialmen's or vendor's liens upon the premises;

          (2) On debts secured by purchase money security agreements describing as collateral the mobile home that is claimed as a homestead or by mortgages or deeds of trust on the premises, executed and acknowledged by the husband and wife or by any unmarried claimant;

          (3) On one spouse's or the community's debts existing at the time of that spouse's bankruptcy filing where (a) bankruptcy is filed by both spouses within a six-month period, other than in a joint case or a case in which their assets are jointly administered, and (b) the other spouse exempts property from property of the estate under the bankruptcy exemption provisions of 11 U.S.C. Sec. 522(d);

          (4) On debts arising from a lawful court order or decree or administrative order establishing a child support obligation or obligation to pay spousal maintenance; or

(5) On debts secured by a condominium's or homeowner association's lien.  In order for an association to be exempt under this provision, the association must have provided a homeowner with notice that nonpayment of the association's assessment may result in foreclosure of the association lien and that the homestead protection under this chapter shall not apply.  An association has complied with this notice requirement by mailing the notice, by first class mail, to the address of the owner's lot or unit.  The notice required in this subsection shall be given within thirty days from the date the association learns of a new owner, but in all cases the notice must be given prior to the initiation of a foreclosure.  The phrase "learns of a new owner" in this subsection means actual knowledge of the identity of a homeowner acquiring title after the effective date of this 1988 act and does not require that an association affirmatively ascertain the identity of a homeowner.  Failure to give the notice specified in this subsection affects an association's lien only for debts accrued up to the time an association complies with the notice provisions under this subsection.

        Sec. 2.  Section 20, chapter 156, Laws of 1963 as amended by section 6, chapter 11, Laws of 1965 ex. sess. and RCW 64.32.200 are each amended to read as follows:

          (1) The declaration may provide for the collection of all sums assessed by the association of apartment owners for the share of the common expenses chargeable to any apartment and the collection may be enforced in any manner provided in the declaration including but not limited to (a) ten days notice shall be given the delinquent apartment owner to the effect that unless such assessment is paid within ten days any or all utility services will be forthwith severed and shall remain severed until such assessment is paid, or (b) collection of such assessment may be made by such lawful method of enforcement, judicial or extra-judicial, as may be provided in the declaration and/or bylaws.

          (2) All sums assessed by the association of apartment owners but unpaid for the share of the common expenses chargeable to any apartment shall constitute a lien on such apartment prior to all other liens except only (a) tax liens on the apartment in favor of any assessing unit and/or special district, and (b) all sums unpaid on all mortgages of record.  Such lien is not subject to the ban against execution or forced sales of homesteads under RCW 6.13.080 and may be foreclosed by suit by the manager or board of directors, acting on behalf of the apartment owners, in like manner as a mortgage of real property.  In any such foreclosure the apartment owner shall be required to pay a reasonable rental for the apartment, if so provided in the bylaws, and the plaintiff in such foreclosures shall be entitled to the appointment of a receiver to collect the same.  The manager or board of directors, acting on behalf of the apartment owners, shall have power, unless prohibited by the declaration, to bid ((in)) on the apartment at foreclosure sale, and to acquire and hold, lease, mortgage and convey the same.  Upon an express waiver in the complaint of any right to a deficiency judgment, the period of redemption shall be eight months after the sale.  Suit to recover any judgment for any unpaid common expenses shall be maintainable without foreclosing or waiving the liens securing the same.

          (3) Where the mortgagee of a mortgage of record or other purchaser of an apartment obtains possession of the apartment as a result of foreclosure of the mortgage, such possessor, his successors and assigns shall not be liable for the share of the common expenses or assessments by the association of apartment owners chargeable to such apartment which became due prior to such possession.  Such unpaid share of common expenses of assessments shall be deemed to be common expenses collectible from all of the apartment owners including such possessor, his successors and assigns.

                                                                                                                      Passed the House February 11, 1988.

                                                                                                                                         Speaker of the House.

                                                                                                                           Passed the Senate March 2, 1988.

                                                                                                                                       President of the Senate.