As of July 2025, all Washington homeowner associations will be required by law to complete an annual audit of your financial statements conducted by an independent Certified Public Accountant (CPA).
If your association collects $50,000 or more in assessments each year, an audit is mandatory. Associations collecting less than $50,000 must still have an audit unless the owners vote each year to waive and audit.
This new requirement, part of RCW 64.90, is designed to increase financial transparency and accountability across all common interest communities.
Other Key Financial Requirements:
- Financial statements must be prepared annually using accrual-based accounting.
- All association funds must be held in the name of the association and cannot be combined with funds from other associations, management companies, or individuals.
- Managing agents must deposit funds directly into the association’s bank accounts.
These updates are part of a broader shift to unify and modernize HOA governance under WUCIOA RCW 64.90. (https://app.leg.wa.gov/RCW/default.aspx?cite=64.90&full=true). Some are terming it New WUCIOA!
Stay in Compliance
The updated audit requirements are already in effect! If your association hasn’t been doing annual audits, now is the time to start.
We focus exclusively on community association audits and tax returns. We work with associations across Washington. Getting started now helps your board stay compliant with state law, avoid surprises, and ensures a smooth transition under the new laws.
