Washington Housing Legislation Reaches Governor’s Desk
April 18, 2025
Aaron Kirk Douglas

Washington Housing Legislation Reaches Governor’s Desk

(Compiled from Sightline Institute reports.)

Washington lawmakers have passed a first wave of housing legislation aimed at increasing housing construction and reducing costs statewide, pending the Governor’s approval. These bills cover key reforms, such as parking requirements, transit-oriented developments, historic landmark rules, lot splitting, and housing production accountability.

Key Legislation:

  1. Parking Reform and Modernization Act (SB 5184): Reduces mandatory parking minimums for new homes and businesses. Allows flexibility for building types like affordable housing and daycares.

  2. Transit-Oriented Development (HB 1491): Legalizes larger apartment buildings near major transit stops. Includes inclusionary zoning provisions

  3. Historic Landmarking Adjustments (HB 1576): Requires owner consent for properties under 125 years old. Sets a minimum age of 40 years for landmark nominations

  4. Lot Splitting (HB 1096): Permits property owners to sell portions of their lots for new home construction.

  5. Production Accountability (SB 5148): Grants the Department of Commerce oversight on housing plans and establishes a “builder’s remedy” for non-compliant cities.

  6. Code Upgrade (HB 1183): Updates building codes to remove restrictive facade and height requirements, especially for affordable and environmentally efficient housing.

Other Housing Bills to Watch

  • “Clear and objective” development standards (SB 5613): Requires all residential development regulations to be explicit and transparent.

  • Relax energy code rules when adding housing to existing buildings (HB 1757): The newest energy code requirements do not apply to new units in existing buildings.

  • Reform Impact Fees (SB 5614): Locks fees to the rates at permit submission and delays payment until project completion.

  • Reform condo liability laws (HB 1403): Enhances

  • Reform condo liability laws (HB 1403): Enhances liability laws for condominium development.

  • Streamline unit lot subdivisions (SB 5559): This aligns subdivision processes with middle housing lot splitting allowances.

  • Legalize rural ADUs (HB 1345, SB 5470): This legislation permits detached accessory dwelling units (ADUs) in rural areas, subject to certain limitations.

  • Middle Housing for Counties (SB 5471): Authorizes counties to permit middle housing in urban growth areas.

  • Study construction costs (HB 1108): Establish a task force to explore opportunities for reducing costs in housing construction.

  • Stabilize rent increases (HB 1217, SB 5222): Caps annual rent increases at 7%.

  • Outlaw algorithmic rent-fixing methods (SB 5469): Prohibits the use of algorithmic rent-setting tools and noncompete agreements between landlord corporations.

  • Limit corporate ownership of single-detached houses (HB 1732, SB 5496): Caps corporate ownership to 25 single-detached houses per company .

  • Update the Multifamily Tax Exemption (HB 1494), which makes minor adjustments to the MFTE program.

  • Legalize Shared Streets (SB 5595): This bill allows cities to designate streets shared by cars, bikes, and pedestrians.

  • Sales tax exemption for affordable housing (HB 1717, SB 5591): Permits local governments to create a tax remittance program for affordable housing development.

  • HB 1099, which provides assistance to low-income tenants, establishes rental support programs for Housing Authority tenants.

  • Provide mobile home park resident assistance (HB 1365): Offers assistance programs for mobile home park residents.

  • County-level REET to support affordable housing (HB 1480): Creates a local real estate tax to fund affordable housing initiatives.

  • Expand daycare zoning (HB 1212): Legalizes daycares in all zones except industrial.

  • Supportive Housing Project Sitting (HB 1195): Clarifies processes for placing supportive and transitional housing projects .

  • Legalize emergency-response kit-built homes (SB 5249): Approves emergency “kit homes” for use in all residential zones during emergencies.

Unsuccessful Measures:

  • Legalize MDUs (HB 1443, SB 5332): Proposes one mobile dwelling unit per residential lot in urban growth areas.

  • Allow small elevators for accessibility (SB 5156): Suggested smaller elevators in buildings up to six stories.

  • Incentivize transit-oriented development (SB 5604): Proposed to incentivize transit-oriented development through funding tools.

  • Increase SEPA exemptions for homebuilding (SB 5612): Aimed to expand SEPA exemptions for middle housing development.

  • Allow homes in first-floor apartments (SB 5555): Proposed increased mixed-use first-floor housing allowances.

  • Subdivision reform (SB 5633): Attempted to overhaul subdivision processes.

  • Homes for Heroes (HB 1022): Proposed assistance for down payments and closing costs for targeted professions.

  • Authorize tree banks (HB 1153): Suggested policies for creating “tree banks” .

  • Design review reform (HB 1160): Limited local design reviews to administrative processes .

  • Re-legalize neighborhood corner stores (HB 1175, SB 5421): Proposed to legalize small businesses in all residential zones.

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