Coalition Roundtable Explores How to Support Condos in Pursuit of More Housing Choices

The Coalition for More Housing Choices discussed condominiums last week at its final housing roundtable of the year. Experts from the real estate, construction, legal, and insurance sectors highlighted some of the factors affecting the ability of developers to bring this housing type to market. Thank you to Michael Orbino with Compass, Joe McCarthy with Stoel Rives, Greg Floyd with HUB International, and Mike Walsh with Terrene Homes for sharing their insights on this important topic—and to Coalition steering committee member Peter Orser for moderating the conversation.
 
Condominiums are a vital part of the housing spectrum, creating an opportunity for homeownership in what is typically a more cost-effective and environmentally friendly housing type. However, as one roundtable panelist noted, production has been low in our state for a long time. Despite past legislative reforms designed to reduce barriers to condominium construction and development, it is still difficult to build new condos in Washington. Roundtable speakers pointed to various barriers, including market risks, rising construction and insurance costs, legal liability and litigation risks, and the complexity of deals and project financing that make them inaccessible to current and future residents.

Panelists discussed some potential solutions that could better incentivize condos. Just a few examples include finding ways to make “right to cure” work as intended, making it easier for builders to fix problems when they occur; passing warranty reforms that reduce litigation risks associated with condo development; and taking another look at the rules governing the use of earnest money to potentially lower construction costs and risks associated with condo projects.