[WSBARP] Casey v. Sudden Valley

[Bryce Dille]

However with respect to condo HOAs which are not governed by RCW64.38  the budget must include what the assessment must be and approved or rejected pursuant to RCW63.34.308. RCW64.34.360 by my reading states that assessments made by the association must be based on the budget adopted by the association.



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Bryce H. Dille | Attorney at Law

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rob Wilson-Hoss
Sent: Thursday, October 26, 2017 9:44 AM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Casey v. Sudden Valley

I think I just figured something out that has been bothering me for years. RCW 64.38.025(3) says how budgets are to be adopted by the Board, and then submitted to the membership for ratification; and the members ratify unless a majority of the total votes rejects it. I, along with others, assumed, based on what I still think are compelling reasons, that "budget" meant income and assessments as well as spending. But Sudden Valley v. Casey said that budget only refers to expenditures. I thought, and still think, this is absolutely wrong - one of the central purposes of the statute was to make sure that members got a right to vote on assessments, and it came about in part because of complaints from members that Boards were just passing assessments without member input.

But what I was overlooking was that the result was, the budget for assessments, since it is not in the statutory process, comes from whatever the individual association bylaws say. So, when the bylaws say the Board imposes an assessment, then the Board imposes the assessment. The problem is shrunk to those associations that have governing documents that specify more difficult processes. And if there is nothing in the governing documents, well, then, the nonprofit statutes, 24.03 and 24.06; and the HOA Act; and most governing documents; say that the Board acts for the association. So the Board sets assessments.

If this helps anyone, great. If I am wrong, please tell me.

Rob

Robert D. Wilson-Hoss
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