[WSBARP] HOA Gurus - New Off-site Water

Tue May 8 16:24:35 PDT 2018

Paul, I am not answering your question, I know, but if you look at the UTC
water regs, a HOA is exempt if it does not provide water to non-members,
generally. Exemption from the regs is a very good thing. So, there is that.
If you provide to nonmembers then you risk state regulation about all sorts
of things having to do with water supply. So that may be precisely why the
governing documents read the way they do - the HOA can buy water from
outside sources, but not supply water to nonmembers. But if the HOA just
buys water from an outside source, it isn't selling water or providing water
to that source, it is taking water from that source, so that may be a better
route. 

Rob

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilson-hoss.com
 <mailto:rob at hctc.com> rob at hctc.com

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From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Tuesday, May 08, 2018 3:53 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] HOA Gurus - New Off-site Water

Looking for creative solutions in an attempt to avoid having to go to HOA
annual meeting and amend the Articles and Bylaws.  Large (200+) HOA needs
more water capacity and wants to go to neighboring properties owners and ask
for permission to either tap into their existing well(s) or permission to
dig a new well(s).  As part of the compensation to these offsite owners, HOA
would like to offer free water from the well site BUT...  The HOA is from
the 1960's and the governing documents are very thin.  

1.         Articles say, in part, "the purposes for which this corporation
is organized are as follows: ...To own, operate and maintain a water supply
system for its members, in compliance with health and environmental
regulations of state and local government agencies, either drawing from
wells owned by the corporation or from outside water sources, or both.  The
corporation shall not use or dispose of such water as a public utility but
solely for the use it its members." 

2.         And, the Bylaws state:  "The membership of the corporation shall
consist of all owners of lots within the Plat."

So, on first reading, it appears that the HOA can provide water only to
“members” and the neighboring property owners are not within the defined
Plat so they aren’t members.   Does this mean the HOA can’t offer free water
to the neighboring property owners who may be granting the HOA permission to
sink a well?  

The HOA is saying that it wants to amend its Bylaws to include the
neighbor's property (which, could be a 1/4 mile down the road and NOT
contiguous) so that the new property comes under the definition of being a
“member.”  This does not sit well with me.  I doubt the neighbors would want
to be subject to CC&Rs for a development that is down the road.  I imagine
that the owner would argue that they have all of the burdens of the CC&Rs
but none of the benefits.  While I guess the HOA could extend use of the
HOA’s swimming pool to the new member, it doesn’t pass the smell test to
have a second class of member.  Everybody in the Plat versus the one guy
with the well on his property who gets free use of everything but the
restrictions (such as tall weeds) doesn’t apply to him.

OK, I am probably over-thinking this.  Is it getting too cute to
characterize the provision of water to the neighbor as a water easement
payment rather than as water from the system?   Any thoughts to add to this
tumble of thoughts?  (BTW, the HOA is hiring other experts to properly guide
the HOA through the water permitting process so that its not my question
here)

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