Housing

HB 1345 restricts detached accessory dwelling units (ADUs) - separate small homes on the same lot as a main house - outside urban growth areas in Washington counties. It requires counties to limit each parcel to one ADU, set size limits (max 1,296 sq ft), mandate water metering and sewage capacity documentation, and require ADUs to be within 150 feet of the main home. Counties must enforce penalties for unpermitted ADUs (including $1,000 fines, removal orders, and 3-year permit bans) and track ADU permits for land-use planning updates. The bill applies only to counties allowing such ADUs outside urban areas, not affecting existing urban or rural ADU rules.

HB 2442 allows Washington counties and cities to impose specific real estate excise taxes to fund local capital projects and affordable housing. It authorizes a 0.25% tax on real property sales for general capital projects (like streets, parks, and sewer systems), with strict usage rules requiring projects to align with comprehensive plans. Additionally, it creates a separate 0.5% tax exclusively for affordable housing development, including acquisition, construction, and maintenance for low- and moderate-income residents. Local governments must document funding plans for future projects and follow voter approval processes for new taxes, while funds must be managed through competitive grant processes for housing initiatives. The bill directly affects local governments by expanding their tax tools for infrastructure and housing priorities.

This bill imposes an $80 fee on most residential mortgage loans in Washington at closing, paid by settlement agents and added to the loan if financed. It exempts reverse mortgages for borrowers aged 60 or older, chattel loans for dwellings, and certain homeownership programs (like those under chapter 43.185A RCW). Borrowers must receive a notice about the fee and the statewide foreclosure hotline number. The state must also study using a portion of the fee to create a homeowner assistance fund by July 2027, with the bill expiring August 1, 2028.

SB 5686 expands and funds the existing foreclosure mediation program, directly affecting homeowners facing foreclosure and unit owners (like those in condominiums or HOAs) facing delinquency for past-due assessments. It broadens the definition of residential real property to include properties with up to four units, bringing more individuals under the program's scope. The bill outlines housing counselors' duties to assist both borrowers and unit owners in good faith to reach resolutions with lenders or associations. It also clarifies that referrals to mediation can occur up to 90 days before a trustee's sale, or 25 days before an amended sale date.

House Bill 1494 modifies existing property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers. The bill clarifies definitions related to "affordable housing" and the population requirements for cities to qualify for these exemptions. A key provision expands the definition of "rehabilitation improvements" to include modifications to occupied buildings that increase the number of multi-family housing units. These changes do not extend the duration of the exemptions or expand them to include conversions of market-rate buildings to affordable housing. The bill primarily affects property owners, developers, and residents involved with multi-unit housing projects in designated urban areas.