Washington · Building types
Multifamily and condo/HOA
Last updated · Checked against primary sources
Short answer
Do apartment and condo buildings fall under Tier 2?
Apartment buildings over 20,000 gross sq ft are Tier 2, with no upper size limit. In a condominium, individually owned units are not counted: the owners' association is the owner, and its common areas and association-owned space are covered above 20,000 sq ft. Rental owners can seek a higher incentive by signing an Anti-Displacement Agreement.
Key facts · checked October 27, 2026
- Threshold
- Over 20,000 gross sq ft, no upper limit WAC 194-50-160
- Multifamily means
- Sleeping units, or more than five dwelling units, mainly permanent occupants CBPS 034
- Condo owner
- The owners' association CBPS 017
- Enhanced incentive
- Up to $0.75 per sq ft or cost of compliance, whichever is lower Commerce incentive page
- Condo penalty base
- Common space only CBPS 034
Which space counts
| Building | What counts toward Tier 2 | Result |
|---|---|---|
| Rental apartments, one owner | All floor area except parking | Tier 2 above 20,000 sq ft, any size |
| Condominium, units individually owned | Common areas only: lobbies, corridors, mechanical rooms, shafts, association amenities and storage inside the envelope | Tier 2 if common space exceeds 20,000 sq ft |
| Condominium with association-owned commercial space | Common areas plus the connected association-owned commercial space | Tier 2 at 20,000 to 50,000 sq ft |
| Commercial space in a condo building | The contiguous commercial space | Tier 2 at 20,000 to 50,000; Tier 1 above 50,000 |
| One owner of more than five connected units | Those units, if over 20,000 sq ft | Meets the multifamily definition: Tier 2 |
Unconditioned common space still counts for coverage but may support an exemption (CBPS 034).
Who signs and applies
- Condominium
- The owners' association is the building owner and signs.
- Several owners
- One designated user prepares the application; every owner signs, so each needs a SAW login and a portal account.
- Management company
- Can prepare and submit once an owner grants it shared access in the portal.
The enhanced incentive
| Base incentive | Enhanced incentive | |
|---|---|---|
| Rate | $0.30 per eligible sq ft | Up to $0.75 per eligible sq ft, or the cost of compliance if lower |
| Who | Any compliant owner with a participating utility | Owners renting to residential tenants |
| Extra step | None | Sign the Anti-Displacement Agreement (Exhibit A) and attach a rent schedule |
The agreement commits that compliance will not be used to justify rent increases. The rent schedule lists each unit's rate with no tenant names, and states whether the rates apply to existing tenants only or to new tenants too. For condominiums, the incentive is based on the common and commercial space.
Practical notes
- Utilities must provide energy data to owners on request, including for tenant-occupied buildings.
- Penalties cannot be passed on to tenants who cooperate with data and access requests.
- In Seattle, the same building usually also reports to the City. See Seattle: Tier 2, benchmarking and BEPS.
Want it done for you? Send the address and floor area to hello@cleanbuildingsassociates.com for a free coverage check and incentive estimate.