"Sean, is this HOA going to hit me with a surprise assessment after I move in?"

I live in an HOA and get some version of this question almost every time I write an offer on a home in Barkley Village, Cordata, or one of Bellingham's other HOA-governed neighborhoods.  Intended to be a benefit, HOA have gotten bad raps with some and honestly that is deserved in many situations.  As a buyer, it is important to know as much as you can.

The question above is a fair question. And as of this year, Washington law gives buyers a real way to answer it before they sign anything.

What Changed on January 1

For years, reserve study requirements in Washington depended on when an HOA or condo association was formed. Older communities could often skip them entirely.

That loophole closed on January 1, 2026.

Under RCW 64.90.545, every common-interest community in the state now has to prepare a reserve study from a qualified professional, update it annually, and complete a full visual inspection at least every three years.

The money has to sit somewhere real, too. Reserve funds now have to be held in a segregated, interest-bearing account, separate from the association's day-to-day operating budget.

Why does this matter to you as a buyer?

Because most associations aren't doing it well. Industry data shows roughly three out of four community associations nationwide are underfunded on their reserves. When an association keeps dues low by skipping reserve contributions, the money simply isn't there when the roof, siding, or parking lot needs replacing.

That's when a special assessment shows up — sometimes for tens of thousands of dollars, split across every owner.

I've seen it happen to buyers who never thought to ask. They fall in love with a home, the HOA dues look reasonable, and a year or two later there's a letter in the mail.

The new law doesn't stop an association from underfunding its reserves. What it does is make that underfunding visible before you buy — if you know where to look.

What Shows Up in Your Resale Certificate Now

Every HOA or condo sale in Washington comes with a resale certificate — the same document I've walked buyers through when I've written about condo resale certificates in Bellingham.

Under the updated law, that certificate now has to specifically disclose whether the association has a current reserve study on file. If it doesn't, the certificate has to say so, in plain language.

That means you, your agent, your lender, and the title company can all see the association's reserve status before you're locked into a purchase agreement — not after.

I request the reserve study and the resale certificate together as soon as we're under contract on any HOA property, condo or not. If the reserve study is missing or years out of date, that's a conversation we have before your inspection contingency runs out, not after you've moved in.

If you're selling a Bellingham condo, this is one more reason to order your resale certificate before you list rather than scrambling once you're already under contract with a buyer.

Not Just a Condo Issue

Most of the buyer questions I get about resale certificates come from people buying condos, and that's still where the law applies most directly, since condos have used this process for years.

But plenty of Whatcom County's single-family neighborhoods are governed by an HOA too — Barkley Village, Cordata, and parts of Sudden Valley among them. If you're buying a house with a homeowners association attached, the same reserve study disclosure requirement follows the sale.

Whether it's a $1,200-a-year HOA on a single-family lot or a $400-a-month condo assessment, the question is the same.

Is the association actually saving enough to cover what's coming? Or is it one bad roof away from a special assessment?

Thinking About Buying in an HOA Community?

If you're house hunting anywhere in Whatcom County and the listing mentions an HOA, ask about the reserve study before you get too attached.

It's a five-minute question that can save you a five-figure surprise.

Every association's financial picture is different, and reading a reserve study takes some practice. That's exactly the kind of thing I walk buyers through before we write an offer.

If you're curious what a specific HOA's reserve situation looks like, or you just want a second set of eyes before you make an offer, I'd be happy to help.

No pressure. No obligation. Reach out anytime at seanhackneyhomes.com

— Sean Hackney NextHome Northwest Living Bellingham & Whatcom County Real Estate

Frequently Asked Questions

Does every HOA in Washington have to complete a reserve study now?

Yes. As of January 1, 2026, RCW 64.90.545 applies to every common-interest community in the state, regardless of when it was formed. That includes condo associations and single-family HOA neighborhoods.

What happens if an HOA doesn't have a current reserve study?

The association's resale certificate has to disclose that gap specifically. It's one of the clearest red flags buyers can check for before making an offer.

Is a reserve study the same thing as a resale certificate?

No. The reserve study is the association's internal funding plan. The resale certificate is the disclosure document you receive as a buyer, and it now has to report whether a current reserve study exists.

How do I find out if a Bellingham HOA has healthy reserves?

Ask for the reserve study and resale certificate as soon as you're under contract. I request both immediately so we have time to review the numbers before your inspection contingency runs out.

Does this apply to single-family homes, or just condos?

Both. The law covers any common-interest community, including single-family HOA neighborhoods like Barkley Village and Cordata, not just condominiums.

About Sean Hackney

Sean Hackney is a Bellingham-based REALTOR® with 23 years of experience specializing in luxury, waterfront, and historic properties throughout Whatcom County. Affiliated with NextHome Northwest Living, Sean brings deep local knowledge and a relationship-first approach to every transaction. Watch Sean's local market videos at youtube.com/@LivinginBellingham, read client reviews at seanhackneyreviews.com, or connect at seanhackneyhomes.com.