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DSCA RCW Compliance

This page contains my notes on Washington State laws (RCWs) and how they apply to DSCA. I have no legal education, so this page is simply my notes and best guesses. The purpose of this page is to collect my research as I work with the DSCA Board of Directors to understand what applies to us and what does not apply to us.

Is DSCA a 'Common Interest Community'?

There are exceptions in RCW 64.90.545 for 'common interest communities'. It appears that DSCA is not a common interest community.

From Sarah Jones (4/18/22):

In terms of DSCA being a Common Interest Community, I've been told that we are not one. This RCW affects condos, cooperatives and leaseholds created after July 1, 2018. They require a re-sale certificate or a public offering statement when they sell. I've attached the addendum we use when a CIC sells in NWMLS.

Is DSCA required to have professional Reserve Study completed?

RCW 64.90.545 requires a reserve study be prepared every three (3) years by a 'reserve study professional', unless the cost of it exceeds 10% of the budget. The 2022 budget was roughly $120,000, so 10% would be a cost of $12,000.

DSCA is still required to prepare an annual reserve study, but we can prepare it ourselves and do not require hiring a professional service.

Is DSCA required to follow the Reserve Study?

If the cost of following the reserve study costs more than 5% of the DSCA budget, then we are not required to follow the guidance in the reserve study. The 2022 budget was roughly $120,000, so 5% would be $6,000.