Land Use Highlights from the 2026 Washington Legislature – Part 3

HB 2354 – Concerning common interest communities – Passed; effective 6/11/2026

HB 2354 is bringing big changes to the Washington Uniform Common Interest Ownership Act (WUCIOA). Effective June 11, 2026, HB 2354 reduces the administrative burden on smaller “middle housing” developments (duplexes, triplexes, etc.).

What’s changing with HB 2354?

Here are the four key takeaways:

1. Exemptions for Small Communities: Developments with 6 or fewer units and average annual assessments under $1,000 are now exempt from most WUCIOA requirements.
2. No Mandatory Reserve Studies: Middle housing communities are exempt from costly reserve study requirements if they do not have shared wastewater or water protection components.
3. Individual Responsibility for Green Tech: Owners of EV charging stations or heat pumps that serve only their unit are solely responsible for all maintenance and repair costs. Community bylaws can no longer shift this financial burden.
4. Higher Audit Threshold: The budget threshold that triggers a mandatory professional audit has doubled from $50,000 to $100,000 in annual assessments, saving smaller associations significant accounting fees.

Bottom Line

HB 2354 will significantly streamline the middle housing development process and greatly reduce the administrative burden on middle housing management organizations in Washington. For more information on how these legislative changes may affect your middle housing development, please contact Jordan Ramis at 503-598-5557.

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