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WashingtonHB 19742025-2026 Regular SessionHouseWALLET

Establishing land banking authorities.

Sponsored By: Natasha Hill (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

30-year affordability rules for land-bank homes

At least half of the land a land bank sells or leases must include a recorded 30-year affordability covenant. Rental homes must be affordable to households at or below 80% of area median income (AMI). Owner-occupied homes must be affordable to households at or below 120% of AMI. This helps renters and buyers who meet those income limits.

Cities and counties can form land banks

The law lets a city or county authorize a public corporation, a housing authority, or a 501(c)(3) nonprofit to run a land bank. A land bank can buy, hold, fix title and liens, improve, lease, and sell property. It can sell or lease land below market price if the deal records affordability rules. All deals must match local, regional, and state housing and anti-displacement plans. If a 501(c)(3) runs the land bank, it cannot build housing itself.

Faster transfer of tax-foreclosed land to land banks

A county can sell tax-foreclosed property directly to a land bank without bids. The county must get at least the unpaid tax principal. Counties must give priority to land banks in these transfers. The 60-day city notice and delay do not apply when the buyer is a land bank or when the county buys the land for public use.

Tax relief for nonprofit and housing land banks

A housing authority that runs a land bank can make payments in lieu of property taxes. Those payments cannot be more than the last yearly tax charged before the purchase. A 501(c)(3) nonprofit that runs a land bank does not pay property taxes on land bank property it owns.

Public land banks pay tax-like charges

Public corporations that operate land banks are not tax-immune on their property. They must pay an annual excise equal to what private owners would pay in property taxes. The money goes to local taxing authorities as if the property were private.

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Sponsors & Cosponsors

Sponsor

  • Natasha Hill

    Democratic • House

Cosponsors

  • Brianna Thomas

    Democratic • House

  • Chipalo Street

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Julia Reed

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Shaun Scott

    Democratic • House

  • Strom Peterson

    Democratic • House

  • Tarra Simmons

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 148 • No: 93

House vote • 3/11/2026

Final Passage as Amended by the Senate

Yes: 59 • No: 37 • Other: 2

Senate vote • 3/5/2026

3rd Reading & Final Passage as Amended by the Senate

Yes: 30 • No: 19

House vote • 2/12/2026

3rd Reading & Final Passage

Yes: 59 • No: 37 • Other: 2

Actions Timeline

  1. Effective date 6/11/2026.

    3/27/2026House

  2. Chapter 233, 2026 Laws.

    3/27/2026House

  3. Governor signed.

    3/27/2026legislature

  4. President signed.

    3/12/2026legislature

  5. Delivered to Governor.

    3/12/2026legislature

  6. Speaker signed.

    3/12/2026legislature

  7. Passed final passage; yeas, 59; nays, 37; absent, 0; excused, 2.

    3/11/2026House

  8. House concurred in Senate amendments.

    3/11/2026House

  9. Placed on second reading by Rules Committee.

    3/5/2026House

  10. Third reading, passed; yeas, 30; nays, 19; absent, 0; excused, 0.

    3/5/2026House

  11. Rules suspended. Placed on Third Reading.

    3/5/2026House

  12. Committee amendment(s) adopted with no other amendments.

    3/5/2026House

  13. Minority; without recommendation.

    3/2/2026House

  14. Minority; do not pass.

    3/2/2026House

  15. WM - Majority; do pass with amendment(s).

    3/2/2026House

  16. Passed to Rules Committee for second reading.

    3/2/2026House

  17. Referred to Ways & Means.

    2/19/2026House

  18. Minority; without recommendation.

    2/18/2026House

  19. And refer to Ways & Means.

    2/18/2026House

  20. HSG - Majority; do pass.

    2/18/2026House

  21. First reading, referred to Housing.

    2/16/2026House

  22. Third reading, passed; yeas, 59; nays, 37; absent, 0; excused, 2.

    2/12/2026House

  23. Rules suspended. Placed on Third Reading.

    2/12/2026House

  24. Floor amendment(s) adopted.

    2/12/2026House

  25. 2nd substitute bill substituted.

    2/12/2026House

Bill Text

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