WA HB1516

Office of the Insurance Commissioner must conduct a study on insurance coverage options to reduce condominium construction defect liability costs for permanently affordable homeownership projects while maintaining adequate coverage

Study requires consultation with nonprofit and government sponsors of affordable housing, authorized and unauthorized insurers, residential construction industry representatives, and state associations

Report due to the legislature by December 31, 2026 must include actuarial analysis comparing nonprofit/government affordable housing risk pools to for-profit condominium models, plus recommendations for reducing insurance costs

Funding comes from the insurance commissioner's regulatory account, and authorized insurers, unauthorized insurers, and risk retention groups must provide requested data for the study

"Permanently affordable homeownership" defined as units sponsored by nonprofits or government entities with ground leases or deed restrictions of at least 99 years that include resale restrictions and sponsor approval requirements