Housing (Housing Finance)

HB 1974 establishes a framework for counties to create land banking authorities aimed at increasing affordable housing. These land banks - public entities or nonprofits - can acquire, hold, and develop land within urban growth areas, requiring at least 33% of housing units to be affordable to extremely low-income households, no more than 33% at market rate, and the remainder for moderate-income residents. The bill mandates 99-year affordability covenants on developed land, prioritizes displacement mitigation, and requires advisory boards reflecting community diversity to oversee land bank activities. It directly affects counties, housing developers, and low/moderate-income residents, particularly in communities disproportionately impacted by housing inequities.

SB 5753 establishes a 12-member task force to study how Washington State could expand public housing as a solution to the housing crisis. The task force will examine funding options, public land use, UN housing standards, and governance changes needed to develop mixed-income housing, with a focus on affordability for low-income residents and communities of color. It must submit preliminary and final reports to the legislature by July and November 2026, respectively, including recommendations for creating publicly owned housing that meets international adequacy standards. This bill does not fund or build housing but creates a study group to develop a strategy for future action.

HB 1867 allows Washington counties or cities to impose a real estate excise tax of up to 0.5% on home sales, with proceeds dedicated exclusively to developing affordable housing for very low, low, and moderate-income residents and those with special needs. Local governments must first gain voter approval through a majority vote in an election, either via a resolution from local officials or a petition signed by 10% of eligible voters. The tax revenue must be managed through a competitive grant process for nonprofit housing providers, housing authorities, or public agencies, with spending plans requiring public hearings. Counties and cities cannot levy this tax if the county has already implemented a similar tax under prior law. This bill directly affects local governments and homebuyers/sellers in communities that choose to adopt the tax.

SB 5591 creates a local sales and use tax reimbursement program for developers building affordable housing projects. It allows cities or counties to adopt programs that reimburse developers for sales taxes paid on construction materials, provided the project includes at least 50% units affordable to low-income households (costing ≤30-38% of income) for 40 years. Developers must apply to local governments, meet strict affordability and timeline requirements (completion within 3 years), and maintain affordability for the full 40-year period. The program applies only to projects meeting Washington’s defined "affordable housing" standards and requires local government approval before implementation.

HB 1687 clarifies definitions and expands support mechanisms for social housing public development authorities in Washington State. It defines "social housing" as publicly owned rental housing available to all income levels (low, moderate, and high-income households) with cross-subsidized rents, and establishes specific income thresholds based on HUD data. The bill enables state and local governments to provide property, infrastructure, or funding to these authorities without standard bidding requirements, while requiring five days of public notice for such transactions. It directly affects social housing authorities, state/local governments, and residents of subsidized housing projects across Washington. The legislation focuses on structural changes to housing authority operations, not on new funding or outcomes.