What to Do With Surplus Funds in Washington

Question:

When a HOA in Washington State runs up a large amount in Retained Earnings (e.g. $50,000-$70,000) is it required for this amount to be refunded proportionately to HOA members?

– Jacqueliene

 

Answer:

Hi Jacqueliene,

According to the Washington Uniform Common Interest Ownership Act Section 64.90.475(2), “Unless provided otherwise in the declaration, any surplus funds of the association remaining after the payment of or provision for common expenses and any prepayment of reserves must be paid annually to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.” A similar provision exists under the Washington Condominium Act Section 64.34.356.

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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