The state Legislature signaled creating affordable homes is a continuing priority by making an additional $127 million investment in the Housing Trust Fund. This adds to the historic $400 million investment in the budget passed last year, for a total of $527 million for affordable housing in the biennium.
Law makers also provided the following housing and homelessness funding:
- $59m to backfill the document recording fee deficit created by the downturn in real estate transactions created by high interest rates
- $2m for Covenant Homeownership Act implementation to address institutional racism created by racist housing policies
- $44.2m to house vulnerable populations in several Department of Commerce programs
Housing policy bills were also in the forefront of legislative debate this session. HB 2114 (Alvarado)/SB 5961(Trudeau) that would have limited rent increases passed the House of Representatives but did not pass out of the Senate Ways and Means Committee. Legislators supporting the bill cited negative impacts of rising rents on seniors, families, and low-wage workers, while lawmakers opposing the bill said they feared limiting rent increase could chill housing development.
The Transit-Oriented Development (TOD) HB 2160 (Reed)/SB 6024 (Trudeau) proposal that would require additional density near light rail, rail and bus rapid transit stops also passed the House and failed to move forward in the Senate. PSRC staff mapped the components of bill to provide visual insight of the potential impact for communities around the region. The discussion will continue on state level TOD policy during the interim, as a budget proviso requires a review of development conditions near transit stops.
PSRC staff will continue to provide background data and technical assistance to help communities around the region create more housing.
Additional housing budget and policy details:
Breakdown of $127m Housing Trust Fund Investment
- $17m competitive for affordable housing
- $20m competitive for rapid acquisition projects
- $39.8m earmarked projects
- $19m Housing for People with Intellectual & Developmental Disabilities
- $13.5m Mobile Home Parks Preservation & Acquisition
Housing Bills
Housing Stability
Rent Stability
ESHB 2114 Alvarado (dead) / SB 5961 Trudeau (dead)
Improves housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement.
Housing Subsidy
Workforce Housing Program √
SHB 1892 (Leavitt) | Signed by Governor
Creates the Workforce Housing Accelerator Revolving Loan Fund Program at Department of Commerce to administer loans to assist with development of housing for low-income households.
Real Estate Transfer Tax
SHB 2276 Berg (dead) / SB 6191 Frame (dead)
Increases Real Estate Transfer tax ceiling for the 1.1% tier from $525k to $750k, new REET of 1% on sales over $3.025m, and directs revenue to affordable housing.
Housing Supply
Residential Housing Regulations √
SB 2071 (Duerr) | Signed by Governor
Requires WA Sate Building Code Council to convene technical advisory groups to recommend changes to apply WA State Residential Code and the International Building Code. Requires Office of Regulatory and Innovation Assistance to contract for the development of an optional standard energy code plan set.
Transitional, Emergency and Permanent Supportive Housing Siting
ESHB 2474 Peterson (dead)
Requires Department of Commerce to facilitate dispute resolutions between jurisdictions and service providers creating and siting housing and shelters. Authorizes a finding of noncompliance and withholding of state funds to jurisdictions if a facility was not permitted.
Lot Splitting
ESHB 1245 Barkis (dead) / SB 5364 Frame (dead)
Requires cities to allow lots of over 2,000 square feet to be split.
Co-Living Housing √
ESHB 1998 (Gregerson) / SSB 5901 (Salomon) | Signed by Governor
Requires cities to allow housing made up of small living units with shared kitchen space in zones that allow at least 6 multifamily units.
Community and Transit Oriented Housing Development
E2SHB2160 Reed (dead) / SB 6024 Trudeau (dead)
Requires increased density near light and other rail and Bus Rapid Transit.
Insurance Market/Housing √
SHB 2329 (Macri) | Signed by Governor
Requires study of insurance coverage available for housing providers receiving housing trust fund resources.