Lawmakers point to condo-liability reform and new models to expand homeownership

State representatives told the Federal Way City Council on July 15 that recent legislation and ongoing work this interim aim to reduce barriers to condominium construction and expand alternative homeownership models. Representative Taylor said House Bill 1403, described in the briefing as a condo-liability and restructuring bill, passed during the session and is intended to reduce legal barriers that have discouraged condo construction. Taylor said the reform is part of a broader state effort to increase housing supply and homeownership options. Delegation members also described continued study of insurability for community land trusts and cooperative ownership models. Representative Taylor and Representative Reeves said studies and legislation on those products are underway to address insurance and financing barriers that can prevent community land trust homes and co-ops from being mortgageable and marketable. Why it matters: Lawmakers framed condo liability reform and alternative ownership models as tools to expand the range of housing types available to families who hope to enter homeownership, particularly where single-family construction is expensive or limited. Council requests and next steps: Council members asked the delegation for technical assistance and a meeting with city land-use staff and the council’s land-use committee to align local zoning and permitting changes with state policy. Representative Taylor offered to work with the city’s land-use department and legislative assistants to schedule follow-up discussions. Limitations and cautions: Lawmakers noted that building supply and funding remain constrained by the state’s broader budget environment. They also said that insurance and lender acceptance of nontraditional ownership forms remain outstanding issues that require more work before broad deployment.