For many years, cities have asked the state to reform condominium insurance laws to help bolster the condominium market. That reform was passed last year in HB 1403. This year, a trailer bill, HB 2304, sponsored by Rep. Jamila Taylor (D–Federal Way), was introduced to tweak that new law. The second layer of reform has passed the Legislature.
According to testimony, builders have stopped building condos because it costs more than 10 times as much to provide insurance for a condo unit than it does to provide the same coverage for a newly built single-family home. Under state law, an apartment can be converted to a condo after seven years, which can lead to seven years of deferred maintenance and increased costs for condo association fees. The bill addresses that issue by allowing an express warranty for a condo unit located in a new or converted building containing 12 or fewer units and four or fewer stories. The four-story allowance will keep construction costs lower and create accessible units for elders.