The bill seeks to exempt limited equity cooperatives from the Washington Uniform Common Interest Ownership Act by amending several sections of the Revised Code of Washington (RCW). A significant insertion defines "limited equity cooperative" as a cooperative where members are restricted from selling their ownership interests except to median-income households, with sales prices limited to the original purchase price plus certain costs and documented rates of return. This definition aims to ensure affordability for future buyers and establishes a framework for the operation of these cooperatives. The bill also clarifies various terms related to common interest communities, assessments, and the roles of associations, providing clearer guidelines for the management and operation of limited equity cooperatives.

Additionally, the bill introduces new definitions and specifies that the chapter applies to all common interest communities created on or after July 1, 2018, while outlining conditions for exemptions from specific regulations. It establishes that limited equity cooperatives may be exempt from property taxation if they meet certain criteria, such as occupancy rates and noncommercial use. The bill allows these cooperatives to elect to be subject to the chapter if stated in their declaration and modifies the definition of "limited equity cooperative" to align with existing law. A sunset provision is included, indicating that the section regarding limited equity cooperatives will expire on January 1, 2033. Overall, the bill aims to enhance the regulatory framework for common interest communities and support the sustainability of limited equity cooperatives.

Statutes affected:
Original bill: 64.90.010, 64.90.360, 84.36.675