Committee hears testimony that warranty option could unlock stacked‑flat condos and lower insurance costs

House Bill 2304, discussed Feb. 18 before the Senate Housing Committee, would amend the Washington Uniform Common Interest Ownership Act to expand the types of condominium projects eligible for an express warranty product (often called a 2‑10 warranty) to some stacked‑flat and four‑story condominium buildings.

Melissa and other staff briefed the committee on WUCIOA background and the bill’s trailer‑bill purpose to allow express warranties for certain new or converted buildings with unit and story limits. Rep. Taylor, the bill sponsor, described stacked flats as a way to provide one‑floor living for accessibility and to expand homeownership options.

A broad coalition of supporters — including the Office of the Insurance Commissioner, FutureWise, Washington Realtors, 1 Drop Homes, Habitat for Humanity, building industry groups and consumer advocates — testified that the warranty product can serve as an alternative to high liability insurance that has discouraged condo production. Jason Gano of 1 Drop Homes said a builder insuring a condo unit faces far higher per‑unit insurance costs than single‑family homes: “If that builder then wants to build a condo, they have to insure each unit for roughly $50,000 for 7 years,” increasing upfront costs and HOA risk. Witnesses said a warranty product is not insurance but can provide specified coverage and reduce overall insurance exposure.

Several witnesses emphasized that the 2‑10 warranty retains consumer protections, provides defined coverage periods and insurance backing, and preserves civil remedies if warranty mechanisms fail. Testimony cited condo construction decline and argued the bill would lower barriers to small‑scale condo production and increase accessible, affordable homeownership opportunities.

The committee received the testimony and closed the public hearing; committee action will follow.