Washington • Reserve study / underfunding
Is your Washington condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Washington building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Washington requires.
The short answer
Washington requires a reserve study and does not require the association to fund it. Washington requires reserve studies for significant-asset associations but does not mandate a funding level — underfunding is the common risk. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Washington's rules. Free.Washington at a glance
Reserve study
Required
Reserve study with full updates roughly every 3 years
Reserve funding
Not required
Underfunding is legal here
Super-lien
Yes
Six months of regular common-expense dues take priority over the first mortgage (condos, in judicial foreclosure)
Resale disclosure
Cancellation right
5 business days after receiving the resale certificate (condos, RCW 64.34.425)
What Washington requires
Washington requires reserve studies for significant-asset associations but does not mandate a funding level — underfunding is the common risk. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
No statutory cap on amount or frequency. The condo resale certificate must disclose existing and scheduled special assessments (RCW 64.34.425). The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
The 6-month priority covers regular dues, not capital special assessments, and applies in judicial foreclosure; pre-2018 HOAs under RCW 64.38 have no statutory super-lien. The certificate discloses dues, unpaid/special assessments, budget, reserves, and insurance; pre-2018 HOAs have no statutory resale-packet requirement.
Your rights in Washington
As a Washington owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (5 business days after receiving the resale certificate (condos, rcw 64.34.425)). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Washington mandates reserve funding — it doesn't, so the board can legally run reserves thin.
- Check the remaining life of the roof, elevators, and façade.
- Remember delinquent-owner debt carries a super-lien in Washington (Six months of regular common-expense dues take priority over the first mortgage (condos, in judicial foreclosure)), which raises everyone's risk.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- RCW 64.90 — Washington Uniform Common Interest Ownership Act(High)
- RCW 64.34.425 — condo resale certificate(High)
- RCW 64.34.352 — condominium insurance(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Washington-licensed professional.
Related guide
Washington reserve studies — the full guide →This page answers what to do right now. For how reserve studies works in Washington — the law, the process, and what to check before you buy or sell — read the full state guide.
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“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
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