Washington Senate backs reduction in building requirements for smaller condo projects in bid to lower costs

Condominiums with fewer than 12 units and fewer than three stories would be exempt from certain requirements prior to construction if a bipartisan bill passes in the state Legislature this session.

Condo developers would no longer be mandated to submit a building design document to construction authorities prior to obtaining a permit to build. Constructors also wouldn’t have to complete inspections during constriction or ahead of conveyance of units. Condos meeting the criteria for this exemption would be held to the same building standards of single-family homes or townhouses, said bill sponsor Sen. Mike Padden, R-Spokane Valley.

Homeownership in Washington is slightly higher than the national average at over 66% in 2022. Washington’s homeowner vacancy rate is 0.4%, 50% below the national average. Padden said he sponsored this bill to expand homeownership and affordability.

“We’ve seen in my district a huge number of multifamily apartments being built. There’s certainly a place for them, but a lot of those folks would like to be able to get into homeownership, so anything we can do to make it more affordable is going to be helpful,” Padden said.

Padden’s bill passed the Senate in a unanimous vote on Wednesday . Next, it will be introduced and sent to a committee in the House of Representatives. The bill has momentum, and Padden said he is “encouraged” by the unanimous support from his chamber and representatives from Spokane government.

In general, condos tend to have a lower price than single-family homes, leading them to be a more affordable alternative for first-time homebuyers. If passed, the bill would further cut costs associated with inspections in certain condos, which would in turn make condos cheaper for prospective homebuyers, Padden said.

“For first-time home buyers, condominiums provide an affordable path to entering the housing market and beginning to build equity,” Spokane Valley Councilmember Arne Woodard said.

Benefits to homeownership are extensive, supporters said. When starting a new business, homeowners often seek a home equity loan, in which they receive a loan at the amount of the difference between the value of their home and what they owe on the mortgage.

“People don’t always realize this, but the No. 1 way small businesses are financed is from an equity loan from a residence, be it a condo or a single-family home,” Padden said.

Requirements of construction for condominiums can be expensive and time-consuming for contractors to reach, and supporters said they apply more toward larger construction projects not included in this bill. Smaller projects that this bill applies to are built similarly to townhouses and single-family homes, so supporters said building requirements should reflect this.

Opponents of this legislation express concerns that by forgoing the submission of a building design document, condos may be built with lower quality, particularly when it comes to weatherproofing buildings.

“Including the design document shows that there’s an intent to build in accordance with the code and to keep water out of these buildings,” said Anthony Rafel, with the Washington State Chapter of Community Association Institute.

Rafel said he is OK with loosening the requirement for the inspection because that’s a significant cost. But he said requiring the documents helps maintain quality for not much expense.

Supporters are confident that condos built today can withstand the test of Washington’s weather.

“Since the requirements went into effect in 2005, the practice has generally changed so that we are not seeing designs that are going to lead to water damage,” said Sen. Manka Dhingra, D-Redmond, chair of the Senate Law and Justice Committee.

Supporters of this legislation are hopeful it will continue to advance homeownership in the state, opening up more affordable options for residents.

“People feel good if they have a piece of the action,” Padden said. “It’s good for their future and it’s good for both individuals and families.”