Read first time 01/22/08.   Referred to Committee on Consumer Protection & Housing.

     AN ACT Relating to homeowners' associations; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) By December 10, 2008, the department of community, trade, and economic development shall conduct a study of improved dispute resolution processes for homeowners' association members and boards of directors. The study shall evaluate the feasibility of creating either state or local appeals boards or state or local ombudsman offices to provide dispute resolution services and information to homeowners' association members and boards of directors about their rights and duties under chapter 64.38 RCW. The study must include:
     (a) Trends in the number of housing communities or cooperatives subject to chapter 64.38 RCW and the number of people living in them;
     (b) The estimated number of homeowners' association members and boards of directors who would make use of the ombudsman or appeals board services;
     (c) The estimated expense of providing such services and potential sources of revenue to support them;
     (d) A recommendation regarding whether such services should be provided; and
     (e) If such services are recommended, the structures and procedures for providing the services and potential revenues for financing them.
     (2) The department of community, trade, and economic development shall appoint an advisory committee of up to twelve members to assist with the study. The speaker of the house of representatives and the majority leader of the senate may each appoint one representative and one senator from each of the two largest caucuses to serve on the advisory committee on an ex officio basis. Legislative and nonlegislative members of the advisory committee shall receive travel expense reimbursement in accordance with RCW 44.04.120, 43.03.050, and 43.03.060.
     (3) Administrative and clerical support shall be provided by the department of community, trade, and economic development.
     (4) Recommendations shall be reported to the legislature and governor by December 10, 2008.

NEW SECTION.  Sec. 2   (1) The department of community, trade, and economic development shall create a task force of up to thirteen members to provide recommendations on model declarations and a method for distributing information on homeowners' associations to prospective buyers. The task force shall draft one or more model declarations for use by declarants forming homeowners' associations. In developing the model declarations, the task force shall review declarations creating homeowners' associations that are currently used in Washington state and other states. The task force shall also draft proposed legislation that provides an effective method for distributing information about a lot's homeowners' association to that lot's prospective buyer. In developing the proposed legislation, the task force shall review the methods used in Washington state and other states.
     (2) The task force membership shall include:
     (a) Two board members representing two different homeowners' associations;
     (b) Three homeowners who own a home that is their primary residence in a community or cooperative that is governed by chapter 64.38 RCW;
     (c) Two attorneys with expertise in homeowners' association formation;
     (d) A representative from the department of community, trade, and economic development; and
     (e) A representative of city governments.
     The speaker of the house of representatives and the majority leader of the senate may each appoint one representative and one senator from each of the two largest caucuses to serve on the task force on an ex officio basis.
     (3) The task force shall convene as soon as possible upon the appointment of its members. The task force shall elect a chair and adopt rules for conducting the business of the task force. Administrative and clerical support shall be provided by the department of community, trade, and economic development.
     (4) Legislative members of the task force must be reimbursed for travel expenses in accordance with RCW 44.04.120.
     (5) By December 10, 2008, the task force shall provide a report of recommended model declarations and proposed legislation to the legislature and the governor.

NEW SECTION.  Sec. 3   This act expires December 31, 2008.