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Washington’s legislators had their eye on common interest communities (CICs) during the 2023 regular session, which ended on April 23, 2023. Three bills relating to or affecting CICs become effective on July 23, 2023. One became effective immediately. Here is a brief summary of the new laws.

HB 1337 – Accessory Dwelling Units. This bill amends the Growth Management Act to require cities and counties to allow accessory dwelling units (ADUs) within urban growth areas. It contains numerous requirements and exceptions. From a CIC developer’s perspective, the following requirements are important.

  • The city or county must allow at least two ADUs in any zone where single-family homes are allowed.
  • The city or county may not require the owner of the lot to reside in or occupy any unit on the lot.
  • The city or county may not prohibit the sale or conveyance of a condominium unit independently of a principal unit solely on the ground that the condominium unit was originally built as an ADU.

Many local ADU ordinances require the owner of the property to reside in one of the units. Some require common ownership of the units. Even without such restrictions, some have questioned the legality of separately selling an ADU and a principal residence since it would convert the “accessory” unit into a “principal” unit under the land use ordinance. This bill eliminates those issues by prohibiting cities or counties from requiring owner occupancy and by forcing cities and counties to allow the sale of ADU condominium units. The new law prohibits developers and homeowners from imposing any prohibition or restriction on ADUs that the city or county would be prohibited from imposing. (This does not invalidate existing CCRS.)…

Originally published by the Daily Journal of Commerce on February 28, 2023.

Owning or developing a parcel of contaminated real property, or a “brownfield,” has historically been a risky endeavor. But brownfields are abundant in the United States, and there are several incentives available to those who develop clean energy facilities on a dirty project…

Originally published by the Daily Journal of Commerce on December 6, 2022.

With more and more corporate tenants and institutional owners looking to reduce their carbon footprints, clean energy improvements in initial project development as well as upgrades to existing projects have become more appealing. However, with interest rates and material costs on the rise…

According to the latest figures from organizations such as the National Low Income Housing Coalition, Oregon needs tens of thousands of additional affordable rental homes just to meet the current housing demand, a demand that continues to rise. And while the need for additional rental units remains as great as it has ever been, affordable…

On December 13, 2019, I will be giving a presentation on construction-related topics arising from commercial lease improvements.  The presentation is part of a two-day seminar on Advanced Commercial Real Estate Leases, co-chaired by my colleague, John A. Fandel, and hosted by Law Seminars International.  Topic will include insurance coverage, mechanic’s liens, scheduling, indemnity, safety,…

An international developer considering condominium projects in Washington should be abreast of the potential risks and liabilities arising from the Washington Condominium Act (“WCA”), which provides a broad array of warranty protections for condominium purchasers. The WCA has given rise to a significant increase in the number of construction defect lawsuits — a deterrent to…

Recently, Division One of the Washington Court of Appeals issued an opinion providing guidance regarding the scope of Washington’s frivolous lien statute and the subtle intricacies of preparing and filing a construction lien against a condominium project.   This article provides a high-level overview of how to file a lien against a condominium project in Washington…

On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019).  The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a condominium and the consequences that may befall a claimant under Washington’s frivolous lien claim statute, RCW 60.04.081.

The case arose from water intrusion at a unit in the Bellevue Park condominium complex. After discovery of the condition, the condominium’s property management company contacted Servpro and executed a work authorization for the contractor to clean up the water and perform restoration work.  Servpro was not paid for its work and filed a claim of lien.  The lien named the association as the indebted person, recited that it applied to the 20 specific units and a common storage area of the condominium, and named each owner of the 20 units but did not allocate a specific portion of the total debt to each unit.…

The key to a legal nonconforming use is establishing that the use was previously permitted. The Utah Court of Appeals recently reiterated this statutory requirement in LJ Mascaro v. Herriman City, 2018 UT App 127, where it stated a land owner must “provide substantial evidence to support a prior legal use,” in order to…