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 qualifying households or for a price that does not exceed certain financial limits, including the original purchase price and documented rates of return. The bill also clarifies existing definitions related to cooperatives and common interest communities, aiming to provide clearer guidelines and protections that support affordability and community stability.

Furthermore, the bill introduces a property tax exemption for limited equity cooperatives serving low-income households, detailing the criteria for eligibility. It specifies that the chapter applies to all common interest communities created on or after July 1, 2018, and allows limited equity cooperatives to opt into the chapter if stated in their declaration. The bill establishes a sunset provision, indicating that the section related to limited equity cooperatives will expire on January 1, 2033. Overall, the legislation aims to enhance the governance and financial structure of common interest communities while supporting low-income housing initiatives.

Statutes affected:
Original bill: 64.90.010, 64.90.360, 84.36.675
Substitute bill: 64.90.010, 64.90.360, 84.36.675
Second substitute: 64.90.010, 64.90.360, 84.36.675