Limited equity cooperatives

AN ACT Relating to exempting limited equity cooperatives from the 1
Washington uniform common interest ownership act; amending RCW 2
64.90.010, 64.90.360, and 84.36.675; and providing an expiration 3
date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 64.90.010 and 2025 c 119 s 6 are each amended to 6
read as follows: 7
The definitions in this section apply throughout this chapter 8
unless the context clearly requires otherwise. 9
(1) "Affiliate of a declarant" means any person who controls, is 10
controlled by, or is under common control with a declarant. For 11
purposes of this subsection: 12
(a) A person controls a declarant if the person:13
(i) Is a general partner, managing member, officer, director, or 14
employer of the declarant; 15
(ii) Directly or indirectly or acting in concert with one or more 16
other persons, or through one or more subsidiaries, owns, controls, 17
holds with power to vote, or holds proxies representing more than 20 18
percent of the voting interest in the declarant; 19
H-2850.1
HOUSE BILL 2590
State of Washington 69th Legislature 2026 Regular Session
By Representatives Peterson, Reed, and Ramel
Read first time 01/20/26. Referred to Committee on Civil Rights &
Judiciary.
p. 1 HB 2590
(iii) Controls in any manner the election or appointment of a 1
majority of the directors, managing members, or general partners of 2
the declarant; or 3
(iv) Has contributed more than 20 percent of the capital of the 4
declarant. 5
(b) A person is controlled by a declarant if the declarant:6
(i) Is a general partner, managing member, officer, director, or 7
employer of the person; 8
(ii) Directly or indirectly or acting in concert with one or more 9
other persons, or through one or more subsidiaries, owns, controls, 10
holds with power to vote, or holds proxies representing more than 20 11
percent of the voting interest in the person; 12
(iii) Controls in any manner the election or appointment of a 13
majority of the directors, managing members, or general partners of 14
the person; or 15
(iv) Has contributed more than 20 percent of the capital of the 16
person. 17
(c) Control does not exist if the powers described in this 18
subsection (1) are held solely as security for an obligation and are 19
not exercised. 20
(2) "Allocated interests" means the following interests allocated 21
to each unit: 22
(a) In a condominium, the undivided interest in the common 23
elements, the common expense liability, and votes in the association;24
(b) In a cooperative, the common expense liability, the ownership 25
interest, and votes in the association; and 26
(c) In a plat community and miscellaneous community, the common 27
expense liability and the votes in the association, and also the 28
undivided interest in the common elements if owned in common by the 29
unit owners rather than an association. 30
(3) "Assessment" means all sums chargeable by the association 31
against a unit, including any assessments levied pursuant to RCW 32
64.90.480, fines or fees levied or imposed by the association 33
pursuant to this chapter or the governing documents, interest and 34
late charges on any delinquent account, and all costs of collection 35
incurred by the association in connection with the collection of a 36
delinquent owner's account, including reasonable attorneys' fees.37
(4) "Association" or "unit owners association" means the unit 38
owners association organized under RCW 64.90.400 and, to the extent 39
necessary to construe sections of this chapter made applicable to 40
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common interest communities pursuant to RCW 64.90.365, 64.90.090, or 1
64.90.370, the association organized or created to administer such 2
common interest communities. 3
(5) "Ballot" means a record designed to cast or register a vote 4
or consent in a form provided or accepted by the association.5
(6) "Board" means the body, regardless of name, designated in the 6
declaration, map, or organizational documents, with primary authority 7
to manage the affairs of the association. 8
(7) "Common elements" means: 9
(a) In a condominium or cooperative, all portions of the common 10
interest community other than the units; 11
(b) In a plat community or miscellaneous community, any real 12
estate other than a unit within a plat community or miscellaneous 13
community that is owned or leased either by the association or in 14
common by the unit owners rather than an association; and15
(c) In all common interest communities, any other interests in 16
real estate for the benefit of any unit owners that are subject to 17
the declaration. 18
(8) "Common expense" means expenditures made by, or financial 19
liabilities of, the association, together with any allocations to 20
reserves. 21
(9) "Common expense liability" means the liability for common 22
expenses allocated to each unit pursuant to RCW 64.90.235.23
(10) "Common interest community" means real estate described in a 24
declaration with respect to which a person, by virtue of the person's 25
ownership of a unit, is obligated to pay for a share of real estate 26
taxes, insurance premiums, maintenance, or improvement of, or 27
services or other expenses related to, common elements, other units, 28
or other real estate described in the declaration. "Common interest 29
community" does not include an arrangement described in RCW 64.90.110 30
or 64.90.115. A common interest community may be a part of another 31
common interest community. 32
(11) "Condominium" means a common interest community in which 33
portions of the real estate are designated for separate ownership and 34
the remainder of the real estate is designated for common ownership 35
solely by the owners of those portions. A common interest community 36
is not a condominium unless the undivided interests in the common 37
elements are vested in the unit owners. 38
(12) "Condominium notice" means the notice given to tenants 39
pursuant to subsection (13)(c) of this section. 40
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(13)(a) "Conversion building" means a building:1
(i) That at any time before creation of the common interest 2
community was lawfully occupied wholly or partially by a tenant or 3
subtenant for residential purposes pursuant to a rental agreement, 4
oral or written, express or implied, who did not receive a notice 5
pursuant to (c) of this subsection prior to entering into the rental 6
agreement or lawfully taking occupancy, whichever event occurred 7
first; or 8
(ii) That at any time within the 12 months preceding the first 9
acceptance of an agreement with the declarant to convey, or the first 10
conveyance of, any unit in the building, whichever event occurred 11
first, to any person who was not a declarant or dealer, or affiliate 12
of a declarant or dealer, was lawfully occupied wholly or partially 13
by a tenant or subtenant for residential purposes pursuant to a 14
rental agreement, oral or written, express or implied, who did not 15
receive a condominium notice prior to entering into the rental 16
agreement or lawfully taking occupancy, whichever event occurred 17
first. 18
(b) A building in a common interest community is a conversion 19
building only if: 20
(i) The building contains more than two attached dwelling units 21
as defined in RCW 64.55.010(1); and 22
(ii) Acceptance of an agreement to convey, or conveyance of, any 23
unit in the building to any person who was not a declarant or dealer, 24
or affiliate of a declarant or dealer, did not occur prior to July 1, 25
2018. 26
(c) The notice referred to in (a)(i) and (ii) of this subsection 27
must be in writing and must state: "The unit you will be occupying 28
is, or may become, part of a common interest community and subject to 29
sale." 30
(14) "Convey" or "conveyance" means, with respect to a unit, any 31
transfer of ownership of the unit, including a transfer by deed or by 32
real estate contract and, with respect to a unit in a leasehold 33
common interest community or a proprietary lease in a cooperative, a 34
transfer by lease or assignment of the unit, but does not include the 35
creation, transfer, or release of a security interest.36
(15) "Cooperative" means a common interest community in which the 37
real estate is owned by an association, each member of which is 38
entitled by virtue of the member's ownership interest in the 39
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association and by a proprietary lease to exclusive possession of a 1
unit. 2
(16) "Dealer" means a person who, together with such person's 3
affiliates, owns or has a right to acquire either six or more units 4
in a common interest community or 50 percent or more of the units in 5
a common interest community containing more than two units.6
(17) "Declarant" means: 7
(a) Any person who executes as declarant a declaration;8
(b) Any person who reserves or succeeds to any special declarant 9
right in a declaration; 10
(c) Any person who exercises special declarant rights or to whom 11
special declarant rights are transferred of record. The holding or 12
exercise of rights to maintain sales offices, signs advertising the 13
common interest community, and models, and related right of access, 14
does not confer the status of being a declarant; or15
(d) Any person who is the owner of a fee interest in the real 16
estate that is subjected to the declaration at the time of the 17
recording of an instrument pursuant to RCW 64.90.425 and who directly 18
or through one or more affiliates is materially involved in the 19
construction, marketing, or sale of units in the common interest 20
community created by the recording of the instrument.21
(18) "Declarant control" means the right of the declarant or 22
persons designated by the declarant to appoint or remove any officer 23
or board member of the association or to veto or approve a proposed 24
action of any board or association, pursuant to RCW 64.90.415(1)(a).25
(19) "Declaration" means the instrument, however denominated, 26
that creates a common interest community, including any amendments to 27
the instrument. 28
(20) "Development rights" means any right or combination of 29
rights reserved by a declarant in the declaration to:30
(a) Add real estate or improvements to a common interest 31
community; 32
(b) Create units, common elements, or limited common elements 33
within a common interest community; 34
(c) Subdivide or combine units or convert units into common 35
elements; 36
(d) Withdraw real estate from a common interest community; or37
(e) Reallocate limited common elements with respect to units that 38
have not been conveyed by the declarant. 39
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(21) "Effective age" means the difference between the useful life 1
and remaining useful life. 2
(22) "Electronic" means relating to technology having electrical, 3
digital, magnetic, wireless, optical, electromagnetic, or similar 4
capabilities. 5
(23) "Electronic transmission" or "electronically transmitted" 6
means any electronic communication (a) not directly involving the 7
physical transfer of a record in a tangible medium and (b) that may 8
be retained, retrieved, and reviewed by the sender and the recipient 9
of the communication, and that may be directly reproduced in a 10
tangible medium by a sender and recipient. 11
(24) "Eligible mortgagee" means the holder of a security interest 12
on a unit that has filed with the secretary of the association a 13
written request that it be given copies of notices of any action by 14
the association that requires the consent of mortgagees.15
(25) "Foreclosure" means a statutory forfeiture or a judicial or 16
nonjudicial foreclosure of a security interest or a deed or other 17
conveyance in lieu of a security interest. 18
(26) "Full funding plan" means a reserve funding goal of 19
achieving 100 percent fully funded reserves by the end of the 30-year 20
study period described under RCW 64.90.550, in which the reserve 21
account balance equals the sum of the estimated costs required to 22
maintain, repair, or replace the deteriorated portions of all reserve 23
components. 24
(27) "Fully funded balance" means the current value of the 25
deteriorated portion, not the total replacement value, of all the 26
reserve components. The fully funded balance for each reserve 27
component is calculated by multiplying the current replacement cost 28
of that reserve component by its effective age, then dividing the 29
result by that reserve component's useful life. The sum total of all 30
reserve components' fully funded balances is the association's fully 31
funded balance. 32
(28) "Governing documents" means the organizational documents, 33
map, declaration, rules, or other written instrument by which the 34
association has the authority to exercise any of the powers provided 35
for in this chapter or to manage, maintain, or otherwise affect the 36
property under its jurisdiction. 37
(29) "Identifying number" means a symbol or address that 38
identifies only one unit or limited common element in a common 39
interest community. 40
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(30) "Leasehold common interest community" means a common 1
interest community in which all or a portion of the real estate is 2
subject to a lease the expiration or termination of which will 3
terminate the common interest community or reduce its size.4
(31) "Limited common element" means a portion of the common 5
elements allocated by the declaration or by operation of RCW 6
64.90.210 (1)(b) or (3) for the exclusive use of one or more, but 7
fewer than all, of the unit owners. 8
(32)(a) "Limited equity cooperative" means a cooperative in 9
which, following the completion of the development or redevelopment 10
of such real property:11
(i) Members are prevented from selling their ownership interests 12
other than to a median-income household; and13
(ii) Members are prevented from selling their ownership interests 14
for a sales price that exceeds the sum of:15
(A) The sales price they paid for their ownership interest;16
(B) The cost of permanent improvements they made to the dwelling 17
unit during their ownership;18
(C) Any special assessments they paid to the limited equity 19
cooperative during their ownership to the extent utilized to make 20
permanent improvements to the building or buildings in which the 21
dwelling units are located; and22
(D) The rate of return as documented in the corporate filings of 23
the limited equity cooperative.24
(b) For the purposes of this subsection, "sales price" is the 25
total consideration paid or contracted to be paid to the seller or to 26
another for the seller's benefit.27
(33) "Map" means: (a) With respect to a plat community, the plat 28
as defined in RCW 58.17.020 and complying with the requirements of 29
Title 58 RCW, and (b) with respect to a condominium, cooperative, or 30
miscellaneous community, a map prepared in accordance with the 31
requirements of RCW 64.90.245. 32
(((33))) (34) "Master association" means: 33
(a) A unit owners association that serves more than one common 34
interest community; or 35
(b) An organization that holds a power delegated under RCW 36
64.90.300(1)(a). 37
(((34))) (35) "Miscellaneous community" means a common interest 38
community in which units are lawfully created in a manner not 39
p. 7 HB 2590
inconsistent with chapter 58.17 RCW and that is not a condominium, 1
cooperative, or plat community. 2
(((35))) (36) "Nominal reserve costs" means that the current 3
estimated total replacement costs of the reserve components are less 4
than 50 percent of the annual budgeted expenses of the association, 5
excluding contributions to the reserve fund, for a condominium or 6
cooperative containing horizontal unit boundaries, and less than 75 7
percent of the annual budgeted expenses of the association, excluding 8
contributions to the reserve fund, for all other common interest 9
communities. 10
(((36))) (37) "Organizational documents" means the instruments 11
filed with the secretary of state to create an entity and the 12
instruments governing the internal affairs of the entity including, 13
but not limited to, any articles of incorporation, certificate of 14
formation, bylaws, and limited liability company or partnership 15
agreement. 16
(((37))) (38) "Person" means an individual, corporation, business 17
trust, estate, the trustee or beneficiary of a trust that is not a 18
business trust, partnership, limited liability company, association, 19
joint venture, public corporation, government, or governmental 20
subdivision, agency, or instrumentality, or any other legal entity.21
(((38))) (39) "Plat community" means a common interest community 22
in which units have been created by subdivision or short subdivision 23
as both are defined in RCW 58.17.020 and in which the boundaries of 24
units are established pursuant to chapter 58.17 RCW.25
(((39))) (40) "Proprietary lease" means a written and recordable 26
lease that is executed and acknowledged by the association as lessor 27
and that otherwise complies with requirements applicable to a 28
residential lease of more than one year and pursuant to which a 29
member is entitled to exclusive possession of a unit in a 30
cooperative. A proprietary lease governed under this chapter is not 31
subject to chapter 59.18 RCW except as provided in the declaration.32
(((40))) (41) "Purchaser" means a person, other than a declarant 33
or a dealer, which by means of a voluntary transfer acquires a legal 34
or equitable interest in a unit other than as security for an 35
obligation. 36
(((41))) (42) "Qualified financial institution" means a bank, 37
savings association, or credit union whose deposits are insured by 38
the federal government. 39
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(((42))) (43) "Real estate" means any leasehold or other estate 1
or interest in, over, or under land, including structures, fixtures, 2
and other improvements and interests that by custom, usage, or law 3
pass with a conveyance of land though not described in the contract 4
of sale or instrument of conveyance. "Real estate" includes parcels 5
with or without upper or lower boundaries and spaces that may be 6
filled with air or water. 7
(((43))) (44) "Real estate contract" has the same meaning as 8
defined in RCW 61.30.010. 9
(((44))) (45) "Record," when used as a noun, means information 10
inscribed on a tangible medium or contained in an electronic 11
transmission. 12
(((45))) (46) "Remaining useful life" means the estimated time, 13
in years, before a reserve component will require major maintenance, 14
repair, or replacement to perform its intended function.15
(((46))) (47) "Replacement cost" means the estimated total cost 16
to maintain, repair, or replace a reserve component to its original 17
functional condition. 18
(((47))) (48) "Reserve component" means a physical component of 19
the common interest community which the association is obligated to 20
maintain, repair, or replace, which has an estimated useful life of 21
less than 30 years, and for which the cost of such maintenance, 22
repair, or replacement is infrequent, significant, and impractical to 23
include in an annual budget. 24
(((48))) (49) "Reserve study professional" means an independent 25
person who is suitably qualified by knowledge, skill, experience, 26
training, or education to prepare a reserve study in accordance with 27
RCW 64.90.545 and 64.90.550. For the purposes of this subsection, 28
"independent" means a person who is not an employee, officer, or 29
director, and has no pecuniary interest in the declarant, 30
association, or any other party for whom the reserve study is 31
prepared. 32
(((49))) (50) "Residential purposes" means use for dwelling or 33
recreational purposes, or both. 34
(((50))) (51) "Rule" means a policy, guideline, restriction, 35
procedure, or regulation of an association, however denominated, that 36
is not set forth in the declaration or organizational documents.37
(((51))) (52) "Security interest" means an interest in real 38
estate or personal property, created by contract or conveyance that 39
secures payment or performance of an obligation. "Security interest" 40
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includes a lien created by a mortgage, deed of trust, real estate 1
contract, lease intended as security, assignment of lease or rents 2
intended as security, pledge of an ownership interest in an 3
association, and any other consensual lien or title retention 4
contract intended as security for an obligation. 5
(((52))) (53) "Special declarant rights" means rights reserved 6
for the benefit of a declarant to: 7
(a) Complete any improvements the declarant is not obligated to 8
make that are indicated on the map or described in the declaration or 9
the public offering statement; 10
(b) Exercise any development right, pursuant to RCW 64.90.250;11
(c) Maintain sales offices, management offices, signs advertising 12
the common interest community, and models, pursuant to RCW 64.90.275;13
(d) Use easements through the common elements for the purpose of 14
making improvements within the common interest community or within 15
real estate that may be added to the common interest community, 16
pursuant to RCW 64.90.280; 17
(e) Make the common interest community subject to a master 18
association, pursuant to RCW 64.90.300; 19
(f) Merge or consolidate a common interest community with another 20
common interest community, pursuant to RCW 64.90.310;21
(g) Appoint or remove any officer or board member of the 22
association or any master association or to veto or approve a 23
proposed action of any board or association, pursuant to RCW 24
64.90.415(1); 25
(h) Control any construction, design review, or aesthetic 26
standards committee or process, pursuant to RCW 64.90.505(3);27
(i) Attend meetings of the unit owners and, except during an 28
executive session, the board, pursuant to RCW 64.90.445;29
(j) Have access to the records of the association to the same 30
extent as a unit owner, pursuant to RCW 64.90.495.31
(((53))) (54) "Specially allocated expense" means any common 32
expense of the association, including allocations to reserves, 33
allocated on a basis other than the common expense liability pursuant 34
to RCW 64.90.480. 35
(((54))) (55) "Survey" has the same meaning as defined in RCW 36
58.09.020. 37
(((55))) (56) "Tangible medium" means a writing, copy of a 38
writing, facsimile, or a physical reproduction, each on paper or on 39
other tangible material. 40
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(((56))) (57) "Timeshare" has the same meaning as defined in RCW 1
64.36.010. 2
(((57))) (58) "Transition meeting" means the meeting held 3
pursuant to RCW 64.90.415(4). 4
(((58))) (59)(a) "Unit" means a physical portion of the common 5
interest community designated for separate ownership or occupancy, 6
the boundaries of which are described pursuant to RCW 7
64.90.225(1)(d). 8
(b) If a unit in a cooperative is owned by a unit owner or is 9
sold, conveyed, voluntarily or involuntarily encumbered, or otherwise 10
transferred by a unit owner, the interest in that unit that is owned, 11
sold, conveyed, encumbered, or otherwise transferred is the right to 12
possession of that unit under a proprietary lease, coupled with the 13
allocated interests of that unit, and the association's interest in 14
that unit is not affected. 15
(c) Except as provided in the declaration, a mobile home or 16
manufactured home for which title has been eliminated pursuant to 17
chapter 65.20 RCW is part of the unit described in the title 18
elimination documents. 19
(((59))) (60)(a) "Unit owner" means (i) a declarant or other 20
person that owns a unit or (ii) a lessee of a unit in a leasehold 21
common interest community whose lease expires simultaneously with any 22
lease the expiration or termination of which will remove the unit 23
from the common interest community, but does not include a person 24
having an interest in a unit solely as security for an obligation.25
(b) "Unit owner" also means the vendee, not the vendor, of a unit 26
under a recorded real estate contract. 27
(c) In a condominium, plat community, or miscellaneous community, 28
the declarant is the unit owner of any unit created by the 29
declaration. In a cooperative, the declarant is treated as the unit 30
owner of any unit to which allocated interests have been allocated 31
until that unit has been conveyed to another person.32
(((60))) (61) "Useful life" means the estimated time during which 33
a reserve component is expected to perform its intended function 34
without major maintenance, repair, or replacement.35
(((61))) (62) "Writing" does not include an electronic 36
transmission. 37
(((62))) (63) "Written" means embodied in a tangible medium.38
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Sec. 2. RCW 64.90.360 and 2025 c 119 s 10 are each amended to 1
read as follows: 2
(1) Except as provided otherwise in this section, RCW 64.90.365 3
and 64.90.375, this chapter applies to all common interest 4
communities. 5
(2) Before January 1, 2028, this chapter applies only to:6
(a) A common interest community created on or after July 1, 2018; 7
and 8
(b) A common interest community created before July 1, 2018, that 9
amends its declaration to elect to be subject to this chapter.10
(3) Chapters 58.19, 64.32, 64.34, and 64.38 RCW:11
(a) Do not apply to common interest communities subject to this 12
chapter; and 13
(b) Apply to a common interest community created before July 1, 14
2018, only until the community becomes subject to this chapter.15
(4)(a) Unless the declaration provides that this entire chapter 16
is applicable, a plat community or miscellaneous community that is 17
not subject to any development right is subject only to RCW 18
64.90.010, 64.90.015, 64.90.020, 64.90.025, 64.90.030, 64.90.035, 19
64.90.040, 64.90.045, 64.90.050, 64.90.055, 64.90.060, 64.90.065, 20
64.90.070, 64.90.085, 64.90.090, 64.90.100, 64.90.105, 64.90.110, 21
64.90.115, 64.90.210, 64.90.225, 64.90.230, 64.90.235, 64.90.240, 22
64.90.245, 64.90.255, 64.90.260, 64.90.265, 64.90.280, 64.90.285, 23
64.90.290, 64.90.300, 64.90.340, 64.90.350, 64.90.360, 64.90.400, 24
64.90.405, 64.90.410, 64.90.415, 64.90.420, 64.90.435, 64.90.445, 25
64.90.450, 64.90.455, 64.90.465, 64.90.480, 64.90.485, 64.90.490, 26
64.90.495, 64.90.502, 64.90.505, 64.90.510, 64.90.511, 64.90.5111, 27
64.90.512, 64.90.513, 64.90.515, 64.90.518, 64.90.520, 64.90.525, 28
64.90.530, 64.90.535, 64.90.540, 64.90.545, 64.90.550, 64.90.555, 29
64.90.560, 64.90.565, 64.90.570, 64.90.575, 64.90.580, 64.90.585, 30
64.90.640, and 64.90.685, if the community: (i) Contains no more than 31
50 units; and (ii) provides in its declaration that the annual 32
average assessment of all units restricted to residential purposes, 33
exclusive of optional user fees, may not exceed $1,000, as adjusted 34
pursuant to RCW 64.90.065. 35
(b) The exemption provided in this subsection applies only if:36
(i) The declarant reasonably believes in good faith that the 37
maximum stated assessment will be sufficient to pay the expenses of 38
the association for the community; and 39
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(ii) The declaration provides that the assessment may not be 1
increased above the limitation in (a)(ii) of this subsection prior to 2
the transition meeting without the consent of unit owners, other than 3
the declarant, holding 90 percent of the votes in the association.4
(5) Before January 1, 2028, except as otherwise provided in RCW 5
64.90.365, this chapter does not apply to any common interest 6
community created within this state on or after July 1, 2018, if:7
(a) That common interest community is made part of a common 8
interest community created in this state prior to July 1, 2018, 9
pursuant to a right expressly set forth in the declaration of the 10
preexisting common interest community; and 11
(b) The declaration creating that common interest community 12
expressly subjects that common interest community to the declaration 13
of the preexisting common interest community pursuant to such right 14
described in (a) of this subsection. 15
(6) This chapter does not apply to any limited equity cooperative 16
unless a limited equity cooperative elects to be subject to this 17
chapter and expressly provides so in its declaration.18
Sec. 3. RCW 84.36.675 and 2023 c 277 s 12 are each amended to 19
read as follows: 20
(1) The real property owned by a limited equity cooperative that 21
provides owned housing for low-income households is exempt from 22
property taxation if: 23
(a) The benefit of the exemption inures to the limited equity 24
cooperative and its members; 25
(b) At least 85 percent of the occupied dwelling units in the 26
limited equity cooperative is occupied by members of the limited 27
equity cooperative determined as of January 1st of each assessment 28
year for which the exemption is claimed; 29
(c) At least 95 percent of the property for which the exemption 30
is sought is used for dwelling units or other noncommercial uses 31
available for use by the members of the limited equity cooperative; 32
and 33
(d) The housing was insured, financed, or assisted, in whole or 34
in part, through one or more of the following sources:35
(i) A federal or state housing program administered by the 36
department of commerce; 37
(ii) A federal or state housing program administered by the 38
federal department of housing and urban development;39
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(iii) A federal housing program administered by a city or county 1
government; 2
(iv) An affordable housing levy authorized under RCW 84.52.105;3
(v) The surcharges authorized by RCW 36.22.250 and any of the 4
surcharges authorized in chapter 43.185C RCW; or 5
(vi) The Washington state housing finance commission.6
(2) If less than 100 percent of the dwelling units within the 7
limited equity cooperative is occupied by low-income households, the 8
limited equity cooperative is eligible for a partial exemption on the 9
real property. The amount of exemption must be calculated by 10
multiplying the assessed value of the property owned by the limited 11
equity cooperative by a fraction. The numerator of the fraction is 12
the number of dwelling units occupied by low-income households as of 13
January 1st of each assessment year for which the exemption is 14
claimed, and the denominator of the fraction is the total number of 15
dwelling units as of such date. 16
(3) The definitions in this subsection apply throughout this 17
section unless the context clearly requires otherwise.18
(a) "Cooperative" has the meaning provided in RCW 64.90.010.19
(b)(i) "Limited equity cooperative" ((means a )) has the same 20
meaning as in RCW 64.90.010, and in this section, refers to a limited 21
equity cooperative ((subject to the Washington uniform common 22
interest ownership act under chapter 64.90 RCW)) that owns the real 23
property for which an exemption is sought under this section ((and 24
for which, following the completion of the development or 25
redevelopment of such real property:26
(A) Members are prevented from selling their ownership interests 27
other than to a median-income household; and28
(B) Members are prevented from selling their ownership interests 29
for a sales price that exceeds the sum of:30
(I) The sales price they paid for their ownership interest;31
(II) The cost of permanent improvements they made to the dwelling 32
unit during their ownership;33
(III) Any special assessments they paid to the limited equity 34
cooperative during their ownership to the extent utilized to make 35
permanent improvements to the building or buildings in which the 36
dwelling units are located; and37
(IV) A three percent annual noncompounded return on the above 38
amounts.39
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(ii) For the purposes of this subsection (3)(b), "sales price" is 1
the total consideration paid or contracted to be paid to the seller 2
or to another for the seller's benefit)). 3
(c) "Low-income household" means a single person, family, or 4
unrelated persons living together whose income is at or below 80 5
percent of the median income adjusted for family size as most 6
recently determined by the federal department of housing and urban 7
development for the county in which the housing is located and in 8
effect as of January 1st of the year in which the determination is to 9
be made as to whether the single person, family, or unrelated persons 10
living together qualify as a low-income household.11
(d) "Median-income household" means a single person, family, or 12
unrelated persons living together whose income is at or below 100 13
percent of the median income adjusted for family size as most 14
recently determined by the federal department of housing and urban 15
development for the county in which the housing is located and in 16
effect as of January 1st of the year in which the determination is to 17
be made as to whether the single person, family, or unrelated persons 18
living together qualify as a median-income household.19
(e) "Members" of a limited equity cooperative means individuals 20
or entities that have an ownership interest in the limited equity 21
cooperative that entitles them to occupy and sell a dwelling unit in 22
the limited equity cooperative. 23
NEW SECTION. Sec. 4. Section 3 of this act expires January 1, 24
2033.25
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