Apartment construction in Olympia in January 2025. (Photo by Bill Lucia/Washington State Standard)
Washington’s “Year of Housing” in 2023 brought a record $400 million investment into the state’s affordable housing fund.
Last year’s short legislative session, on the other hand, saw legislators make only modest progress on solving Washington’s housing shortfall.
This time around, the hot topic in Olympia has been rent stabilization — Democrats’ idea to cap rent increases at 7% per year, with some exceptions. To curry votes from moderate Democrats in the Senate, the legislation may need softening around the edges.
But more than halfway through this 105-day session, lawmakers are also eyeing a slew of other policy changes in hopes of spurring more housing.
With a major deadline that felled numerous bills in the rearview mirror, this year’s housing talking points have become clear. Some of the ideas aren’t sexy, but legislators say they will pave the way for gobs of new homes across Washington.
“We continue to do a lot of work on housing, and are pleased with the work that we were able to send over to the Senate for consideration,” said House Speaker Laurie Jinkins, D-Tacoma.
The focus on supply is a priority on both sides of the aisle.
“The cost is driven by insufficient housing,” Senate Minority Leader John Braun told reporters last week. “We need to build more. We know that we can’t build more as the government. We have to get the private sector more engaged in our state. To do that, we need a better regulatory system.”
Some proposals are likely dead for the year. Republicans were particularly frustrated a bill to allow backyard cottages in rural Washington didn’t get a vote from the Senate despite bipartisan support.
Now, with less than six weeks left in the session, a handful of bills will drive much of the remaining discussion on housing. Many were included in a report on the housing crisis from Lt. Gov. Denny Heck and Gov. Bob Ferguson’s transition team.
Parking
Most cities and counties require a certain number of parking spaces for housing developments. Lawmakers on both sides of the aisle say this takes up valuable space and makes building more onerous.
Senate Bill 5184 would prohibit jurisdictions from mandating more than one parking space per two residential units or more than one spot per 1,000 square feet of commercial space. Developers could still choose to build additional parking, but it could not be required.
Cities and counties also could not require parking minimums for homes under 1,200 square feet, commercial spaces under 5,000 square feet, affordable housing, senior housing and child care facilities, among other buildings.
The measure passed out of the Senate with bipartisan support last month. It is set for a vote out of a House panel, its first step in getting to the chamber’s floor.
Transit-oriented development
House Bill 1491 aims to increase multi-family housing, such as apartment buildings, near bus and train stations, by setting new requirements for the types of construction cities must allow in these areas.
The legislation also requires either at least 10% of rental units built near stations to meet affordability guidelines for those making under 60% of the area median income, or 20% of homes for those making 80% or less of the area median. Developers meeting these affordability benchmarks would get a 20-year property tax exemption.
The bill also sets up a grant program to assist cities in planning for transit-oriented development.
The affordability component is the main sticking point for Republicans, who worry this will make development unfeasible. The House passed the bill on a party-line vote.
Senate Majority Leader Jamie Pedersen, D-Seattle, said he was looking forward to his chamber considering the proposal. It is scheduled for a Senate Housing Committee vote Friday.
Similar measures the past couple years have passed out of one of the chambers before dying in the other.
Lot splitting
Republicans hope not to feel deja vu over this one.
In 2023 and 2024, Rep. Andrew Barkis’ proposal requiring cities to allow landowners to split their lots to make room for more homes cleared the state House with little opposition. But each time it failed to get to the Senate floor.
The House passed this year’s version, House Bill 1096, with ease.
“It’s a bill that makes good sense, allows for more density, allows for lower cost, entry-level homes,” Braun said.
The measure is set Friday for a key vote out of the Senate Housing Committee.
Commercial redevelopment
In recent years, lawmakers pushed to allow for the redevelopment of commercial buildings into housing as remote work left vacant office space.
But that work has been focused on properties in land zoned for commercial and mixed-use buildings.
House Bill 1757 goes further, extending the effort to allow for conversion of commercial buildings in residential zones. The legislation would bar cities from requiring a change-of-use permit for this sort of redevelopment and exempts the conversions from state energy code requirements.
Supporters think this will lead to more walkable neighborhoods.
The bill passed the House by a 95-2 vote, and awaits a Friday committee vote in the Senate.
‘Housing development opportunity zones’
Another idea would look to convert vacant commercial properties like strip malls into “housing development opportunity zones.”
Senate Bill 5749 would allow cities to waive impact fees for developers building in these zones. Last year, one consultant found redeveloping underused shopping centers could result in nearly 675,000 new housing units in the state.
After near-unanimous passage out of the Senate, the bill was heard in committee Wednesday.
Growth Management Act
This wonky measure called the “Housing Accountability Act” aims to ensure local governments comply with state laws seeking to expand options for affordable housing, like duplexes.
Under Senate Bill 5148, the state Department of Commerce would review land use proposals from cities and counties planning through the Growth Management Act. If found to be out of compliance, the local governments would be unable to deny affordable housing developments. It could also affect eligibility for state infrastructure funding.
The measure has bipartisan support. The House Housing Committee will hear the bill Thursday.
Condos
Lawmakers are looking to fill a gap in housing supply by spurring new condominium construction, giving another option to first-time homebuyers.
House Bill 1403 seeks to reduce legal risk for builders who shy away from condo developments out of fear they could face litigation.
The bill passed out of the House with bipartisan support. The Senate Housing Committee is scheduled to host a public hearing on it Friday.
Price-fixing
The Washington attorney general’s office joined other states and the Department of Justice last year in suing a software company accused of working with landlords to inflate rental prices. Ferguson, who was attorney general at the time, said RealPage’s software helped price about 800,000 leases since 2017.
Legislation now looks to ban this alleged algorithmic price fixing by prohibiting the collection of data that feeds recommendations for rental rates. Senate Bill 5469 also bars landlords from obtaining those recommendations. The attorney general could enforce violations of the proposed law.
The bill passed the Senate along party lines and is now set for a committee hearing Thursday in the House.
Kit homes
A top housing priority for Republicans this session has been paving the way for more small premade homes. Builders can construct the kit homes quicker and cheaper than traditional houses.
Senate Bill 5552 would require the state Building Code Council to develop rules specific to kit homes by the end of this year. The Senate passed the bill unanimously.
Another bill would have allowed cities and counties to site kit homes as “emergency housing” in single-family zones. That measure failed to make it to the Senate floor, and so is likely dead for the year.