Governor Ferguson signs bills improving housing

EVERETT - Governor Bob Ferguson signed a slate of bills today aimed at improving our state's housing, including his own Governor Request Legislation allowing housing in commercial and mixed-use zones.

Sen. Emily Alvarado (D-Seattle) sponsored Senate Bill 6026, which passed both chambers with broad bipartisan support - 35-14 in the Senate, and 69-27 in the House. Rep. Chipalo Street (D-Seattle) sponsored the companion bill.

The bill was one of seven housing bills signed by Governor Ferguson at a ceremony at HopeWorks Station in Everett. Video is available here; photos are available here. Other bills signed today include:

• House Bill 2266: Creates statewide standards for permitting for permanent supportive housing, transitional housing and emergency housing - also known as STEP housing - ensuring this important housing option can be built more quickly and predictably across our state. Sponsored by Rep. Strom Peterson.
• House Bill 1345: Authorizes counties to allow landowners in rural communities to build detached accessory dwelling units, or ADUs. ADUs can keep families and friends close, especially for families caring for a loved one. This bill also provides important protections for rural communities, including standards for water use by ADUs. Sponsored by Rep. Sam Low.
• Senate Bill 6237: Requires landlords to disclose flood risk, ensuring tenants understand their risk, informing important decisions around flood insurance and making sure our housing policies keep pace with evolving environmental risks. Other states, including California, Oregon and Texas, already require landlords to make this disclosure. Sponsored by Sen. Jessica Bateman.
• Senate Bill 6027: Gives local governments more flexibility in how they can spend tax revenue earmarked for affordable housing, and clarifies eligible uses of state funds for permanent supportive housing contractors with the Dept. of Commerce. Last year, the federal government announced changes to homelessness service contracts that, if implemented, would destroy our state's affordable housing provider network. This bill helps protect our state from the volatility created by that policy. Sponsored by Sen. Emily Alvarado.
• House Bill 2418: Amends the Local Project Review Act to streamline the permitting process. It creates new permit review timelines for several government entities, including special purpose districts and public utility districts. This will help reduce costly delays and provide clarity for both builders and local governments. Sponsored by Rep. Davina Duerr.
• House Bill 1974: Helps reduce the time it takes to secure land for housing development through local land banking authorities in cities and counties. Land banks benefit neighbors and the community by managing abandoned or underutilized properties, allowing developers to purchase land and preserve it for later development of affordable housing. Sponsored by Rep. Natasha Hill.

Building more housing has been a priority for Governor Ferguson since he took office. On his first day in office, he signed an Executive Order directing state agencies to review all regulations that impact housing, permitting and construction and identify any provision that can be streamlined, deferred or eliminated. In his supplemental budget, he proposed the state spend $244 million on housing - the largest-ever supplemental budget housing investment. And, in December, he launched the Department of Housing Task Force to help create a new cabinet-level agency singularly focused on addressing the state's housing crisis.

Utilizing mixed-use zones to create more housing - SB 6026

"The need for more housing is urgent," Governor Ferguson said. "We must make it as easy as possible to plan, permit and build housing to address the crisis. This bill removes barriers to clear the way for more housing all across Washington."

"With this legislation, vacant strip malls, abandoned big-box stores and empty parking lots can be transformed into housing," Sen. Alvarado said. "This bill removes unnecessary barriers and makes it easier to build the homes our communities need."

SB 6026 requires local governments with populations greater than 30,000 to allow housing in areas zoned for commercial or mixed-use.

It also limits jurisdictions' ability to mandate ground-floor commercial in up to 40% of their total acreage zoned for commercial or mixed-use, except in areas such as industrial zones, station areas and historic landmarks. This allows the market to better drive where ground-floor commercial makes sense. The bill also prohibits ground-floor commercial mandates for all affordable housing projects, which can be a significant financing barrier to building affordable housing.

A lack of predictability and consistency across local jurisdictions can be a significant barrier as each city approaches ground-floor retail mandates differently. These requirements can be unpredictable and, at times, arbitrary - creating uncertainty that delays or prevents housing development altogether. By establishing clearer statewide parameters, this bill improves predictability while preserving meaningful local flexibility.

For example, an abandoned strip mall or shuttered big-box store could be turned into housing with fewer barriers and arbitrary ground-floor retail mandates.

Land availability continues to be a barrier to building more housing. There are vacant properties across Washington that present opportunities to build more housing in areas where infrastructure already exists.