HB 1480 would allow any Washington county to impose a 0.5% tax on real estate sales to fund affordable housing, but only with voter approval. The tax revenue must be used exclusively for developing housing for very low, low, and moderate-income residents, including construction, rehabilitation, and maintenance. Counties must create a spending plan with public input before seeking voter approval, and the tax would be collected from both buyers and sellers (with at least half of the burden on the buyer). The tax would take effect 30 days after voter approval.
HB 1206 expands eligibility for Washington's multifamily tax exemption program to all counties required or choosing to plan under the Growth Management Act (RCW 36.70A.040), removing a previous population threshold. The bill amends tax code definitions to include any qualifying county under the Growth Management Act, regardless of unincorporated population size. This change directly affects counties that must develop or choose to develop comprehensive plans under state law, enabling them to offer tax incentives for multifamily housing projects. The key mechanism is revising eligibility criteria to eliminate the prior minimum population requirement for counties seeking to use this program. The policy change aims to broaden access to tax incentives for affordable housing development across more jurisdictions.
SB 5771 adds a new $300 annual tax credit for low-income renters in Washington who paid rent for their primary residence (including mobile home lots) for at least 183 days during the year. This credit directly affects eligible individuals who already qualify for the existing Working Families Tax Credit but also face property taxes included in their rent. The credit is calculated based on rental duration (183+ days), adjusted for inflation starting in 2027, and reduces at specific income levels as outlined in the bill. It expands the existing credit program to specifically address the financial impact of property taxes embedded in rental costs.
Senate Bill 5576 allows counties, cities, and towns in Washington State to impose a new special excise tax of up to four percent on short-term rental lodging booked through online platforms. The revenue collected from this tax must be used exclusively for essential affordable housing programs. These funds can support activities such as acquiring, rehabilitating, or constructing affordable housing, covering operations and maintenance costs for such housing, or providing rental assistance to tenants. Local governments are required to publish an annual report detailing how these tax revenues were spent.
HB 1365 creates a state rental assistance program for low-income tenants in manufactured/mobile home parks who are over 55 and facing rent increases exceeding inflation. The program provides monthly assistance of up to $200 or 50% of their lot rent (whichever is lower), administered by the Department of Commerce. Tenants must reapply annually and report income or rent changes, with eligibility based on household income under 80% of local median income. The program is funded by a $2 million appropriation for fiscal year 2026, separate from existing relocation funds.
HB 1763 imposes a 6% tax on short-term rental platforms (like Airbnb) starting January 2026. Revenue from this tax funds local affordable housing programs and housing infrastructure projects (such as water, sewer, and transportation systems) in counties and cities. Local governments must use the funds exclusively for homeless services, shelters, or infrastructure, with requirements including limiting single-family units to 2,000 square feet and requiring urban annexation for projects within growth boundaries. The bill directly affects short-term rental platforms (as taxpayers) and local governments (as fund recipients).
Senate Bill 5529 amends the county population requirements for jurisdictions that can offer property tax exemptions on accessory dwelling units (ADUs). It lowers the minimum population threshold, allowing counties with populations between 900,000 and 1,500,000 to also exempt ADUs from taxation. This aims to incentivize homeowners to rent these units to low-income households, provided conditions like tenant income verification and rent limits are met. For these newly eligible counties, the exemption specifically applies to detached ADUs and requires a local legislative authority resolution.
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.
HB 2025 adds a new $300 annual tax credit for low-income renters in Washington who pay sales or use tax. Eligible residents must have rented their primary residence for at least 183 days during the year and meet existing credit requirements. The credit, effective starting in 2026, will be adjusted annually for inflation based on the Seattle consumer price index. This directly supports residential tenants whose rent includes property tax costs, expanding the existing working families' tax credit program.
SB 5662 allows municipal utilities to waive connection charges for properties developed by certain non-profit organizations, public authorities, or local agencies that provide emergency shelter, transitional housing, permanent supportive housing, or affordable housing. Generally, these waivers must be funded by general funds, grants, or other identified revenue streams. However, in large counties east of the Cascade mountains, waivers can be granted without explicit funding if the developer records a covenant. This covenant restricts the property's use to the specified affordable housing purposes and requires repayment of the waived charges if the property's use changes or no longer meets eligibility requirements.
