[WSBARP] HOAs and Reserve Studies - Reality Check

[Paul Neumiller]

Thank you for your thoughts.

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John M. Riley III
Sent: Tuesday, March 14, 2017 4:50 PM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] HOAs and Reserve Studies - Reality Check

As we all know,  there are many many sets of covenants requiring associations all over Washington.  The operation of those associations varies, and the conduct of the members and directors/officers varies.  Many are still probably unaware of the reserve legislation you speak of.  I believe the immunity provisions are a recognition of these facts.


John M. Riley III
Principal | Witherspoon • Kelley
JMR at witherspoonkelley.com<mailto:JMR at witherspoonkelley.com> | Attorney Profile <http://www.witherspoonkelley.com/john-riley-1> | vCard<http://www.witherspoonkelley.com/s/jmr.vcf>
[WK]


422 W. Riverside Ave, Ste 1100
Spokane, WA 99201
(509) 624-5265 (office)
(509) 458-2728 (fax)
witherspoonkelley.com


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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Tuesday, March 14, 2017 3:42 PM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] HOAs and Reserve Studies - Reality Check

Am I reading this correct?  RCW 64.38.065 seems to require that an homeowners association (not a condo) must, at least, prepare a Reserve Study and an association is “encouraged’ to establish a reserve account (presumably pursuant to the Reserve Study) but then RCW 64.38.085 says “Monetary damages or any other liability may not be awarded against or imposed upon the association, the officers or board of directors of the association, or those persons who may have provided advice or assistance to the association or its officers or directors, for failure to: Establish a reserve account; have a current reserve study prepared or updated in accordance with the requirements of this chapter; or make the reserve disclosures in accordance with this chapter.”

Soooooo, RCW 64.38.065 says you must perform a Reserve Study but RCW 64.38.085 says hey, don’t worry about it because you aren’t liable if you don’t prepare a Reserve Study???

(Now I know that an association should prepare a Reserve Study and should have a reserve fund but that’s not my question)

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