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

BuildingWhat counts toward Tier 2Result
Rental apartments, one ownerAll floor area except parkingTier 2 above 20,000 sq ft, any size
Condominium, units individually ownedCommon areas only: lobbies, corridors, mechanical rooms, shafts, association amenities and storage inside the envelopeTier 2 if common space exceeds 20,000 sq ft
Condominium with association-owned commercial spaceCommon areas plus the connected association-owned commercial spaceTier 2 at 20,000 to 50,000 sq ft
Commercial space in a condo buildingThe contiguous commercial spaceTier 2 at 20,000 to 50,000; Tier 1 above 50,000
One owner of more than five connected unitsThose units, if over 20,000 sq ftMeets 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 incentiveEnhanced incentive
Rate$0.30 per eligible sq ftUp to $0.75 per eligible sq ft, or the cost of compliance if lower
WhoAny compliant owner with a participating utilityOwners renting to residential tenants
Extra stepNoneSign 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.