Washington Strengthens Protections for Homeowners Facing HOA Assessment Delinquencies

Washington Updates HOA Assessment and Foreclosure Protections for Homeowners

Washington has strengthened protections for homeowners who fall behind on homeowners association and condominium assessments.

The changes are designed to give homeowners more opportunities to resolve delinquent assessments before an association can pursue foreclosure and to provide greater transparency during the collection process.

The new rules are particularly important for homeowners who experience temporary financial hardship and for HOA boards and community managers responsible for collecting assessments.

What Has Changed?

Beginning January 1, 2026, Washington expanded its foreclosure mediation program to include certain homeowners who are delinquent, or may become delinquent, on HOA or condominium assessments.

Homeowners can work with housing counselors or attorneys to seek assistance and may be referred to mediation to explore alternatives to foreclosure.

Before mediation in applicable cases, the homeowner and association generally must participate in a “meet and confer” process to discuss the delinquency and possible solutions.

Possible solutions can include:

  • A repayment plan
  • Modification or restructuring of the delinquent balance
  • Waiver or reduction of certain fees
  • Other alternatives to foreclosure

The goal is to give homeowners and associations an opportunity to resolve the problem before the situation escalates.

New Rules for Delinquent Assessments

Washington law also establishes additional requirements for associations when collecting past-due assessments.

An association must generally send a notice of delinquency no later than 30 days after an assessment becomes past due.

After the notice is provided, the association must wait at least 15 days before taking additional collection action or charging certain collection-related costs, with limited exceptions.

The law also limits certain fees that may be charged during this period. For example, an administrative fee may not exceed $10, and a single late fee is limited to the lesser of $50 or 5% of the unpaid assessment that triggered the fee.

This is different from a 5% cap on annual HOA assessment increases. The law does not establish a statewide 5% limit on regular HOA dues increases.

Foreclosure Protections

Washington also has requirements that must be met before an association can foreclose a lien for unpaid assessments.

For many homeowners’ associations, the owner must owe at least the greater of:

  • Three months or more of assessments; or
  • $2,000 in assessments

Fines, late charges, interest, attorney fees, and certain collection costs are not included when determining whether the minimum amount has been reached.

The association must also follow additional notice and waiting-period requirements before foreclosure can proceed.

This provides homeowners with additional time to address delinquent assessments and potentially resolve the issue before losing their property.

Mediation Can Help Homeowners and Associations Find Solutions

The expanded foreclosure mediation program is an important part of the new framework.

During mediation, associations may be required to provide documents such as an itemized account ledger, copies of liens, and relevant governing documents.

Homeowners may provide evidence of payments, information about financial hardship, and a proposed repayment schedule when appropriate.

The process is intended to encourage both sides to look for alternatives before foreclosure.

What This Means for Homeowners

Homeowners who are struggling to keep up with HOA assessments should not ignore notices from their association.

Instead, they should:

  • Review the amount being claimed
  • Request an itemized account when appropriate
  • Check whether payments have been properly credited
  • Contact the association promptly
  • Ask about available repayment options
  • Seek housing counseling or legal assistance if necessary
  • Respond to foreclosure-related notices immediately

Waiting until the debt becomes significantly larger can make it more difficult to find a workable solution.

What This Means for HOA Boards and Community Managers

The changes also create important responsibilities for associations.

HOA boards and managers should make sure their collection procedures are consistent with current Washington law.

Associations should carefully document:

  • Assessment charges
  • Payments received
  • Delinquency notices
  • Collection activity
  • Liens
  • Repayment arrangements
  • Mediation or meet-and-confer proceedings

Clear records and consistent procedures can help protect both homeowners and the association.

What Homebuyers Should Know

Prospective buyers should also pay attention to an HOA’s financial condition before purchasing a property.

Buyers may want to review:

  • Current HOA assessments
  • Outstanding special assessments
  • Association financial statements
  • Reserve funding
  • Recent budgets
  • Pending major repairs
  • Rules concerning assessments
  • Any disclosed delinquent assessments or liens

Understanding the association’s financial position can help buyers better estimate the long-term cost of owning a home in the community.

The Bottom Line

Washington’s recent changes provide homeowners with additional protections when they fall behind on HOA or condominium assessments.

However, the law does not create a statewide 5% cap on HOA assessment increases.

Instead, the major changes focus on delinquency notices, limits on certain collection fees, foreclosure requirements, housing counseling, and mediation.

For homeowners, the most important takeaway is to respond quickly when assessments become delinquent and understand the options available before the situation progresses toward foreclosure.

For HOA boards and community managers, the changes reinforce the importance of accurate records, transparent communication, and consistent collection procedures.