The Washington Court of Appeals recently ruled in a case involving Ladder Properties LLC and the City of Snoqualmie, addressing a dispute over zoning and property ownership. The court's decision could have significant implications for property owners and local governments regarding accessory dwelling units (ADUs) and condominium regulations.
The case, filed under docket number 88063-2, arose after Ladder Properties purchased a residential property in Snoqualmie that contained two structures: a house and an ADU. After converting the two residences into condominium units, the City of Snoqualmie issued a notice of code violations against Ladder Properties, claiming that the conversion violated local zoning codes. The court's ruling ultimately reversed the lower court's decision, siding with Ladder Properties.
Background
Ladder Properties LLC acquired a property in Snoqualmie in early 2022 that included a house and an ADU, which had been rented for over 20 years. After renovations, the company converted the two residences into condominium units in late 2022. Jarius Wood and Malia Wood-Rodriguez purchased the front residence, while Fiona Soileau bought the ADU.
In February 2024, the City of Snoqualmie issued a notice of code violations against the property, alleging that the condominium conversion violated the city's zoning code. The city argued that the conversion created two separate dwelling units, which was not permitted under the zoning regulations for the residential constrained district (R-C) where the property was located. The city sought to dissolve the condominium association as a remedy.
The Ruling
The Washington Court of Appeals ruled in favor of Ladder Properties, stating that the city's enforcement actions amounted to an unlawful prohibition on the ownership of an ADU as a condominium unit. The court emphasized that the city's actions violated state law under the Washington Uniform Common Interest Ownership Act (WUCIOA) and the Growth Management Act (GMA).
The court ruled, "the City’s version of code enforcement amounts to a prohibition on the ownership of an ADU as a condominium unit that violates state law under the Washington Uniform Common Interest Ownership Act (WUCIOA)."
Judge Coburn authored the opinion, which reversed the lower court's dismissal of Ladder Properties' Land Use Petition Act (LUPA) action. The court reinstated the hearing examiner's decision not to uphold the sewer and water code violations cited by the city.
Impact
This ruling could have far-reaching implications for property owners and local governments in Washington. It clarifies that municipalities cannot prohibit the condominium ownership of ADUs if the properties comply with existing zoning laws. This decision reinforces the rights of property owners to convert and sell residential units as condominiums, aligning local regulations with state law.
The ruling also highlights the importance of understanding the relationship between local zoning codes and state laws regarding property ownership. Property owners in similar situations may find this decision beneficial, as it sets a precedent for challenging local government actions that conflict with state statutes.
What's Next
The City of Snoqualmie may consider appealing the decision to a higher court, although details regarding any potential appeal were not available in the court filing. The case could also prompt a review of the city's zoning regulations and their compatibility with state laws governing property ownership.