The bill seeks to enhance and fund the foreclosure mediation program in Washington State by amending the Revised Code of Washington (RCW) and introducing new provisions. Key insertions include a definition of "Assessment," which covers all charges by an association against a unit, and a new section allowing unit owners at risk of delinquency to seek assistance from housing counselors. These counselors will help prepare unit owners for meetings with associations and inform them about alternatives to foreclosure. The bill also modifies the existing mediation program to include unit owners, establishing a structured referral process and outlining the responsibilities of both parties during mediation. It emphasizes that housing counselors are not liable for civil damages unless gross negligence is proven.

Additionally, the bill introduces a foreclosure prevention fee of $80 for residential mortgage loans, which will be deposited into a foreclosure fairness account to fund housing counseling and legal aid. It mandates timely notices for delinquent assessments, requiring associations to send a notice within 30 days of an assessment being past due, and prohibits further collection actions until 15 days after this notice. The bill clarifies the conditions under which associations may initiate foreclosure proceedings and emphasizes the need for transparency and accountability in record-keeping. Overall, the legislation aims to protect unit owners from aggressive collection practices while ensuring that associations can effectively manage and collect assessments.

Statutes affected:
Original Bill: 61.24.005, 61.24.160, 61.24.163, 61.24.166, 61.24.165, 61.24.172
Substitute Bill: 61.24.005, 61.24.160, 61.24.163, 61.24.166, 61.24.165, 61.24.172
Second Substitute: 61.24.005, 61.24.160, 61.24.163, 61.24.166, 61.24.165, 61.24.172
Engrossed Second Substitute: 61.24.005, 61.24.163, 61.24.165, 61.24.172, 64.32.200, 64.34.364, 64.38.100, 64.90.485
Bill as Passed Legislature: 61.24.005, 61.24.163, 61.24.165, 61.24.172, 64.32.200, 64.34.364, 64.38.100, 64.90.485, 64.32.170, 64.34.372, 64.38.045, 64.90.495
Session Law: 61.24.005, 61.24.163, 61.24.165, 61.24.172, 64.32.200, 64.34.364, 64.38.100, 64.90.485, 64.32.170, 64.34.372, 64.38.045, 64.90.495