Washington Senate Bill 5686 (SB5686), effective January 1, 2026, introduces significant changes to how community associations must handle delinquent assessments. Because this legislation directly impacts association operations, budgeting, and collections, AMS Association Management Services NW is providing the following overview to help boards and homeowners understand what to expect.

Over the past several months, SB5686 has undergone multiple clarifications regarding how it interacts with the Washington Condominium Act (WCIOA) and how its provisions are enforced. Guidance from legal and industry sources has varied, particularly around implementation. AMS has been coordinating closely with experienced collection attorneys and will move forward with an approach that is statutorily compliant, procedurally efficient, and cost-effective for both associations and homeowners.

As with many new laws, interpretations may continue to evolve as SB5686 is implemented and litigated. AMS will continue to monitor developments and advise boards of material changes as they arise.

Key Change: Notice of Delinquency

Associations must send a Notice of Delinquency no later than 30 days after an assessment becomes past due, mailed to the unit and any additional addresses provided by the owner, emailed if available, and provided in English and any owner-designated preferred languages. For 15 days after delivery, no further collection action may occur, except:

Actual printing and mailing costs
Administrative fee up to $10
Single late fee of lesser of $50 or 5% of unpaid assessment

Updated Delinquency Process

AMS will issue a combined late notice and Notice of Delinquency within three business (3) days of the association’s late date, allowing for payment receipt and bank processing. Upon issuance:

$10 administrative fee
Single late fee (lesser of $50 or 5% of unpaid assessment)
Actual mailing costs (envelope, postage, paper)

After 15 days, the delinquency process will continue per the association’s collection resolution. The Association will pay AMS the $10 administrative fee and mailing costs, which will then be recovered from the owner as permitted by statute.

Operational & Financial Impacts

Delinquency recovery timelines may be extended
Administrative workload, printing, and mailing costs will increase
Boards should consider potential higher delinquency projections in budgeting

Policy & Resolution Updates

Associations are recommended to update collection resolutions to reflect current law. SB 5686 supersedes conflicting provisions, and updated resolutions provide clarity and transparency regarding delinquency processing.

Meet and Confer & Mediation

SB 5686 introduces formal Meet and Confer and mediation requirements involving housing counselors or an owner’s attorney. Upon receipt of a valid request all collection action and must stop, we cannot charge collection or attorney costs through this process.

Advocacy Opportunity

As SB 5686 increases procedural burden and costs, Boards may contact Washington State legislators to share concerns: https://leg.wa.gov/legislature/pages/findyourlegislator.aspx

Reference

Full text of SB5686 and related updates: https://app.leg.wa.gov/billsummary?BillNumber=5686&Year=2025

We will continue to monitor guidance and evolving interpretations and keep Boards informed of material changes affecting operations, budgeting, or collections. If you have questions, please contact your AMS management team.