Substitute House Bill 2354 amends multiple sections of Washington’s common interest community law (including RCW 64.90.015 and RCW 64.90.513 among others listed in the bill header). It modifies existing law rather than creating an entirely new statute and was passed by the House on February 13, 2026 and the Senate on March 5, 2026. The bill adds and clarifies procedural rights and obligations for unit owners and associations regarding electric vehicle (EV) charging stations and heat pumps. Associations may not adopt or enforce restrictions that effectively prohibit or unreasonably restrict personal, noncommercial EV charging stations or heat pumps, though they may impose reasonable restrictions and require board approval only for installations on or connected to common elements. Applications must be processed like architectural modification requests, approvals or denials must be in writing, and applications are deemed approved if not denied in writing within 60 days unless a reasonable request for more information causes delay. Associations may not charge a placement fee and may charge a processing fee only if such a fee applies uniformly to all architectural applications. Unit owners must obtain permits, comply with codes and safety standards, and register EV stations within 30 days; owners (and successive owners) are responsible for installation, inspection, maintenance, repair, replacement, removal, electricity costs, and restoration of common or limited common elements. Associations may install shared charging stations and set terms of use. Willful violation by an association creates liability for actual damages, a civil penalty up to $1,000, and an award of reasonable attorneys’ fees to prevailing unit owners. Some insurance-related text and the end of one subsection are not included in the provided extracts. The bill also strengthens reserve study, financial statement, and audit requirements and ties certain dollar thresholds to the consumer price index. Reserve studies must be updated annually, with a reserve study professional conducting a visual site inspection at least every third year unless an exemption applies; associations must prepare annual accrual-based financial statements, and audits are required annually for associations with $100,000 or more in annual assessments (smaller associations may waive audits by vote under specified conditions). Association funds must be held in the association’s name at a qualified financial institution and not commingled, and managing agents must promptly deposit received funds. The law directs annual July 1 adjustments of specified dollar amounts based on a Bureau of Labor Statistics consumer price index, subject to formula limits. Important portions of the bill text were not present in the extracts (including completion of RCW 64.90.513 subsection (8), the specific text of subsection (4)(c) regarding insurance, and the detailed language for several RCW amendments listed in the header).

If enacted, the bill makes it easier for individual unit owners to install and use electric vehicle chargers and heat pumps by limiting when associations can block or charge for them, requiring associations to process installation requests within 60 days (or the request is automatically approved), and banning placement fees while allowing a reasonable processing fee only if the same fee applies to all architectural changes. Unit owners will pick up most direct costs and risks: they must pay for installation, electricity, inspection, maintenance, repairs, removal and restoration of any common areas if required, buy and keep required insurance, register the device with the association within 30 days, and provide insurance and reimburse increased premiums within 14 days when required; associations that willfully violate the rules face actual damages, attorneys’ fees for prevailing owners, and civil penalties up to $1,000. Associations will need to adopt clear written approval processes, may need to be named on policies as additional insured in some cases, and face tighter timelines and potential liability if they delay or deny requests without good cause. The bill also tightens financial governance: associations must update reserve studies annually (with a professional and site inspection at least every three years unless exempt), prepare accrual-based annual financial statements, and get annual audits when assessments reach $100,000 or more (smaller associations can waive audits by owner vote); managing agents must deposit association funds promptly and accounts cannot be commingled. Important details are missing from the provided text—notably the rest of one EV provision, the exact insurance subsection referenced, and the specific dollar amounts tied to CPI adjustments—so some implementation obligations and thresholds remain unclear.