SHB 2354 (Chapter 96, Laws of 2026) added an exemption from the reserve study requirement. RCW 64.90.545(2) now excludes, unless the governing documents require otherwise: "(c) To common interest communities consisting only of middle housing as defined under RCW 36.70A.030 that do not or will not in the future require the construction, operation, and maintenance on-site of any reserve component to manage wastewater and protect health and safety and ground and service waters". The exemption for a study or update costing more than 10 percent of the annual budget moves from (2)(c) to (2)(d). It and the exemptions for nonresidential communities and nominal reserve costs are otherwise unchanged. Effective June 11, 2026.
What the law said, and what it says now
Before
(2) Unless the governing documents require otherwise, subsection (1) of this section does not apply (a) to common interest communities containing units that are restricted in the declaration to nonresidential use, (b) to common interest communities that have only nominal reserve costs, or (c) when the cost of the reserve study or update exceeds ten percent of the association's annual budget.
After
(2) Unless the governing documents require otherwise, subsection (1) of this section does not apply: (a) To common interest communities containing units that are restricted in the declaration to nonresidential use; (b) To common interest communities that have only nominal reserve costs; (c) To common interest communities consisting only of middle housing as defined under RCW 36.70A.030 that do not or will not in the future require the construction, operation, and maintenance on-site of any reserve component to manage wastewater and protect health and safety and ground and service waters; or (d) When the cost of the reserve study or update exceeds 10 percent of the association's annual budget.
Struck-through words were removed by the change; underlined words were added.
Quoted word for word from CommunityPay's captures of the text:
before, April 19, 2026, from the official text; after, July 17, 2026, from the official text.
Passages separated by an ellipsis come from different places in the section.
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