HB 1022 creates a pilot program providing no-interest down payment and closing cost loans (up to $25,000) to essential workers in Washington state who meet income limits. It directly affects firefighters, nurses, police officers, emergency medical technicians, mental health professionals, social workers, child care providers, and veterans with household income below 100% of the state median. Loans require no repayment until the home is sold, rented, or refinanced, and the program is capped at $15 million in funding through June 2027. The bill mandates reporting on program outcomes to the legislature by 2026 and 2027.
SB 5776 creates a program for "American dream homes" - owner-occupied single-family homes under 1,500 square feet designed for low-income households. It requires cities to limit permitting fees to $1,250 per home, provides property tax exemptions for seven years, and offers tax credits to builders based on the home's selling price. Homes must stay affordable for low-income buyers (defined as households earning ≤70% of local median income) for seven years after the first sale, with restrictions preventing resale above affordability limits unless due to foreclosure. The program expires December 31, 2036, and applies only to homes meeting specific income and size criteria.
This bill modifies Washington's covenant homeownership program, which provides down payment and closing cost assistance to eligible first-time homebuyers from historically marginalized communities. It raises the household income eligibility threshold for participants from 100% to 140% of the area median income. The bill also introduces a provision allowing for full loan forgiveness after five years for participants whose household income is at or below 80% of the area median income at the time of the loan. Additionally, it adjusts the membership of the program's oversight committee.
HB 1808 creates a state-funded revolving loan program to support permanently affordable homeownership for low-income households. The program provides loans (up to 50% of project costs) to nonprofit developers building housing that remains affordable for at least 99 years through long-term restrictions on resale and ownership. Loans carry interest rates between 1% and 2.5%, with repayments recycled into the fund to finance new projects. This directly affects low-income homebuyers (defined as households earning ≤80% of local median income) and nonprofit developers who build housing meeting specific affordability standards.
SB 5770 creates a new state property tax exemption for Washington homeowners' primary residences, reducing taxes on a portion of their home's value. The exemption equals the greater of $100,000 or 60% of the county's median home value (updated annually), applied to state taxes only (not local taxes). Homeowners must apply yearly by April 1st with proof of residency and personal information like Social Security numbers, and it applies to all primary homes including community land trusts and cooperatives. The bill aims to prevent displacement and help middle- and fixed-income families maintain housing stability by making home ownership more affordable. This policy change directly affects homeowners who qualify as primary residents, with the exemption taking effect for taxes levied in 2028 and later.
HB 2024 creates a state property tax exemption for Washington homeowners' primary residences, reducing their state tax burden. It exempts either $100,000 of a home's assessed value or 60% of the county's median home value (whichever is greater), applied after other existing exemptions. This directly benefits primary residence owners - especially fixed-income households and those at risk of displacement - by lowering annual state property tax costs. The exemption applies only to state levies (not local taxes) and requires an annual application by April 1st, with verification to ensure it applies to only one residence.
House Bill 1516 directs the Office of the Insurance Commissioner to conduct a study on insurance coverage options for permanently affordable homeownership units. The study's purpose is to explore ways to reduce costs related to condominium construction defect liability for homes sponsored by nonprofit organizations or government entities. It requires consultation with various stakeholders, including insurers, sponsoring organizations, and the construction industry. The Insurance Commissioner will submit a report to the legislature by December 31, 2026, including an analysis of risk pools and recommendations for new insurance mechanisms to lower these costs.
SB 5496 would limit large investment entities (like real estate investment trusts and pooled fund managers) and businesses owning over 50 single-family homes from purchasing additional single-family homes in Washington. It prohibits these entities from acquiring new properties, with limited exceptions for nonprofits, properties needing code modifications, or short-term conversions to multifamily housing. Violations could result in a $100,000 penalty per violation and require the property to be sold to a third party within one year. The bill aims to increase housing availability for residents by restricting large-scale investor purchases, which the legislature cites as contributing to the state's housing affordability crisis. The bill is currently pending in the Senate Rules Committee and has not advanced to final passage.
