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 5679 expands eligibility for Washington's multifamily tax exemption program to include all counties required or choosing to plan under the Growth Management Act (RCW 36.70A.040), removing a previous population requirement. This change directly affects counties that must develop comprehensive plans under state law, allowing them to apply for the tax exemption program for multifamily housing projects. The bill amends definitions in RCW 84.14.010 to define "county" as any jurisdiction meeting the planning requirement, and adds new criteria for designating residential targeted areas, including mandatory displacement risk evaluations for county-designated areas after July 2021. The policy change aims to increase affordable housing opportunities by broadening access to tax incentives for qualifying multifamily developments.
SB 5747 exempts affordable housing projects from current state building code requirements, allowing cities and counties to enforce older building codes (the last four iterations) to lower construction costs and speed development. It directly affects developers and local governments building housing defined as affordable - rental units costing ≤30% of household income or owner-occupied housing for low/moderate-income households (≤80% of local median income). The bill amends Washington’s building code statutes (RCW 19.27 and 19.27A) to create this exemption specifically for affordable housing projects. This policy change aims to increase housing supply by reducing regulatory barriers for qualifying developments.
SB 5749 allows cities and code cities to designate "housing development opportunity zones" in underutilized areas with existing large commercial structures, such as shopping malls or vacant stores. Within these zones, residential development is prioritized, and projects are encouraged to use existing infrastructure and site areas to help reduce costs. Cities may also waive impact fees for developments in these zones, and designations can be implemented outside of typical planning cycles, provided they are included in the next comprehensive plan update. The bill mandates a review by 2043 to assess the number of housing and affordable housing units created, with a provision for potential repeal if affordable housing targets are not met, and the act is set to expire on July 1, 2045.
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.
SB 5552 aims to create a new category of building codes specifically for "kit homes" to increase affordable housing options. The bill defines kit homes as residential structures 800 square feet or smaller, built from prefabricated walls, floors, and roofs assembled on-site. It directs the State Building Code Council to establish these specific building codes for kit homes by December 31, 2025. This initiative is intended to provide more affordable small homes for homebuyers of modest means.
HB 1840 authorizes counties to allow "middle housing" (like duplexes, triplexes, or townhouses) in designated unincorporated urban growth areas, specific rural development zones, and established communities. It requires at least one middle housing unit per single-family lot in urban areas and limits these developments to four units per lot in rural zones. The bill mandates that counties apply the same zoning, permit, and environmental rules to middle housing as to single-family homes, while requiring sewer service for rural middle housing. This policy aims to increase housing density without new infrastructure, directly affecting homeowners and developers in targeted areas.
SB 5731 creates a state-funded tenant assistance program in Washington to help households struggling with high housing costs. It provides financial aid to renters earning up to 80% of their county's median income who spend more than 30% of their income on housing, with priority for those earning ≤60% of median income or receiving Supplemental Security Income. The program offers up to $400 monthly in assistance (capped at reducing housing costs to 30% of income) for up to 12 consecutive months per household. The program expires June 30, 2032, and requires annual reports on its impact.
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.
