Lake v. Woodcreek Homeowners Ass'n

243 P.3d 1283, 169 Wash. 2d 516
Washington Supreme Court·Decided April 15, 2010·No. No. 81873-8·Published·Cited by 284 cases

Opinion

Fairhurst, J.

¶1 — The Horizontal Property Regimes Act (HPRA), chapter 64.32 RCW, applies to the Woodcreek [521]*521Condominium in Bellevue, Washington. A Woodcreek owner, Sandra Lake, invokes the HPRA to resolve a dispute between her, the Woodcreek Homeowners Association, and her fellow condominium owner Glen R. Clausing. Lake claims that the association’s board of directors violated the HPRA or Woodcreek’s declaration when it approved Clausing’s request for permission to build a second-story addition on his townhouse-style condominium apartment. Two questions are presented. Does the HPRA or Wood-creek’s declaration bar the division of a condominium’s common areas? Does the HPRA or Woodcreek’s declaration require the unanimous consent of condominium owners to combine a portion of the common area with the owner’s apartment? We answer no to both questions.

The HPRA

¶2 The HPRA governs condominiums in Washington established between 1963 and July 1, 1990, as Wood-creek was. These condominiums are also regulated by select provisions of the Condominium Act, chapter 64.34 RCW, as well as the condominium’s declaration and bylaws. The HPRA defines a “ ‘[declaration’ ” as “the instrument by which the property is submitted to provisions of [the HPRA].” RCW 64.32.010(9). Akin to a master deed, a declaration describes the condominium property and contains the covenants defining the property rights and legal obligations of the property owners. 18 William B. Stoebuck & John W. Weaver, Washington Practice: Real Estate: Transactions § 12.3, at 23 (2d ed. 2004). The declaration is incorporated into each condominium apartment’s deed. See RCW 64.32.120(1). Bylaws provide for the administration of the condominium. RCW 64.32.090(11). The bylaws must accord with the declaration, which, in turn, must obey the HPRA. See Shorewood W. Condo. Ass’n v. Sadri, 140 Wn.2d 47, 54, 992 P.2d 1008 (2000).

¶3 The HPRA permits a condominium to comprise three kinds of property — private apartments, common ar[522]*522eas, and limited common areas — with a condominium owner holding different kinds of property rights in each. An “ ‘[a]partment’ ” is “a part of the property intended for any type of independent use ... and which has a direct exit to a public street or highway, or to a common area leading to such street or highway.” RCW 64.32.010(1). When an apartment is within a building, the HPRA delineates the boundaries as “the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof,” along with “the air space so encompassed.” Id. The HPRA permits an apartment to be leased, owned as a tenancy in common, or held in any other way “in which real property may be owned, leased or possessed in [Washington].” RCW 64.32.010(2). The declaration must describe “the number of apartments,” RCW 64.32.090(2), as well as “[t]he apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification,” RCW 64.32.090(3). An apartment owner has “exclusive ownership and possession of his apartment but any apartment may be jointly or commonly owned by more than one person.” RCW 64.32.040.

¶4 A common area, under the HPRA’s catchall definition of “ ‘[cjommon areas and facilities,’ ” includes the “parts of the property necessary or convenient to its existence, maintenance and safety, or normally in common use.” RCW 64.32.010(6)(h). The HPRA names several specific parts of the condominium property as common areas or facilities, including the building’s foundation, roof, and exterior walls; any central heating or cooling; any centralized water works; any ducts, pumps, and elevators, and more. RCW 64.32-.010(6). These are the default definitions, but the HPRA allows the declaration to differ. (The Woodcreek declaration largely accords with the HPRA catchall and specific definitions, and adds, among other things, pipes, conduits, and wires, as well as the gardens and green spaces.) The declaration must describe the common areas. RCW 64.32.090(4).

[523]*523¶5 The HPRA defines “ ‘[l]imited common areas and facilities’ ” as “those common areas and facilities designated in the declaration, as it is duly recorded or as it may be lawfully amended, as reserved for use of certain apartment or apartments to the exclusion of the other apartments.” RCW 64.32.010(11). The limited common areas must be described in the declaration. RCW 64.32.090(5).

¶6 Condominium owners hold “an undivided interest in the common areas and facilities in the percentage expressed in the declaration.” RCW 64.32.050(1). This includes the limited common areas. The condominium owners have a right to share in the profits from the condominium property and are obligated to cover the common expenses. RCW 64.32.080.

¶7 The HPRA requires that declaration amendments be allowed. The declaration itself must contain “[t]he method by which the declaration may be amended.” RCW 64.32.090(13). The amendment procedure must, at a minimum, include a provision stating “[t]hat not less than sixty percent of the apartment owners shall consent to any amendment.” Id. However, the amendment procedure for “any amendment altering the value of the property and of each apartment and the percentage of undivided interest in the common areas and facilities” requires the unanimous consent of the owners. Id.

¶8 The HPRA also mandates that the declaration allow for modifications to the apartments, common areas, and limited common areas.

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Lake v. Woodcreek Homeowners Ass'n, 243 P.3d 1283, 169 Wash. 2d 516 (Wash. 2010).

243 P.3d 1283 (Lake v. Woodcreek Homeowners Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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