Committee hears bill to expand 2‑10 warranty option to 'stacked flats' to boost condo supply
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Summary
House Bill 2304 would allow a 2‑10 warranty product and express warranties for certain small or stacked‑flat condominium projects, a change supporters say reduces liability and insurance costs and could spur accessible, lower‑cost condo construction.
The Senate Housing Committee considered House Bill 2304, a trailer bill that would expand options for condominium warranty coverage and allow stacked‑flat condo projects to qualify for the statutory 2‑10 warranty process previously available for other housing types.
Staff explained that the Washington Uniform Common Interest Ownership Act (WACIOA) creates implied warranties for condominium builders; HB 2304 would let a declarant or dealer provide an express warranty (a 2‑10 warranty product) for new or converted condominium buildings of limited size and height. Melissa Van Gorkam said the bill applies to projects meeting specific unit and story thresholds and that a fiscal note was not requested.
Representative Taylor, the prime sponsor, said the change would expand condo options (including stacked flats) and improve accessibility. Supporters from the Office of the Insurance Commissioner, Futurewise, Washington Realtors, One Drop Homes, Habitat for Humanity, the Building Industry Association, Master Builders and Sightline Institute testified in favor, arguing the 2‑10 warranty product lowers insurance costs for developers and preserves consumer protection layers.
"If that builder then wants to build a condo, they have to insure each unit for roughly $50,000 for 7 years," Jason Gano of One Drop Homes said, describing high insurance costs for condo projects; he added that a warranty is not insurance but can reduce the total risk premium for developers. Proponents told the committee that the warranty would be backed by warranty insurance and that civil remedies remain available if warranty mechanisms fail.
The committee heard broad proponent testimony and closed the public hearing; the bill package was later included among items moved in the committee’s executive business. Sponsors presented the bill as a modest expansion intended to encourage small‑scale condo production and improve affordability and accessibility for first‑time buyers and seniors.
What happens next: HB 2304 will continue through the Senate process with the committee’s recommendation and any additional amendments as it advances.
