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WashingtonSB 60272025-2026 Regular SessionSenateWALLET

Modifying requirements and allowed uses for certain funding related to providing and maintaining affordable housing and related services.

Sponsored By: Emily Alvarado (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

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

Property tax break for recovery homes

Nonprofits that own or lease approved recovery residences get a property tax exemption if they charge no more than actual operating costs. The exemption applies to taxes collected in calendar years 2024 through 2033. The law also updates “emergency housing” to match the definition in RCW 36.70A.030, which can affect which properties qualify.

Housing tax can fund builds and rent

Money from the separate local housing tax can buy, fix, or build affordable or supportive housing, pay to run those units and housing services, or provide rental help. Administrative costs may be no more than 10% of the annual tax. Housing and services generally go to people with incomes at or below 60% of the area median. For projects meant for owner‑occupancy, income can be up to 80% of area median.

More county tax money to housing help

At least 60% of a county’s local housing tax money is used for affordable housing and related behavioral‑health facilities and services. Those funds can buy land, build or buy emergency, transitional, supportive, or added in‑building units, build or buy behavioral‑health facilities, run housing and programs, and fix existing affordable housing. People who live in that housing must be in listed groups and have household income at or below 60% of the county median (for example, people with behavioral‑health disabilities, veterans, seniors, people who are homeless or at risk, people with disabilities, and survivors of domestic violence). The rest of the money funds behavioral‑health programs and services, operations and maintenance of affordable housing and housing‑related services, or rental assistance. No more than 10% of this tax money can replace existing local funds, and counties or cities may issue bonds and pledge up to 50% of the tax for repayment. When a county buys a facility, it must try to offer 15% of units to nearby residents or people with community ties, when enough eligible people are available and without risking HUD funding.

Recording surcharge funds housing and homelessness

Each $183 surcharge is split this way: 1% stays with the county auditor, 30% stays with the county, 54.1% goes to the state home security fund, 13.1% to the affordable housing for all account, and 1.8% to the landlord mitigation account. Counties can use up to 10% of their share for administration, at least 75% for their local homeless housing plan (if a city runs its own program, the county must send a share to that city), and at least 15% for housing that serves extremely low‑ and very low‑income people, prioritizing households at or below 30% of area median income. Eligible county uses include buying, building, or fixing housing affordable to 50% AMI or less, operating those projects, rental vouchers for such units, and operating emergency and licensed overnight youth shelters. The home security fund uses at least 90% for grants such as rental help, eviction prevention, shelters, outreach, rapid rehousing, emergency housing, and permanent supportive housing, with priority for people who are chronically homeless and people with disabilities; up to 10% may fund administration. The affordable housing for all account spends at least 90% on operations, maintenance, and supportive services for housing serving people at or below 30% AMI at move‑in; up to 10% may fund administration and technical help. The landlord mitigation account supports the mitigation program, with up to 10% for administration and database needs.

Smoother state housing grants to providers

For certain housing grants, grantees can use at least 15% of each award for admin or overhead. Commerce must also aim to keep renewal grant amounts high enough to maintain ongoing operations. Grantees must keep receipts for expenses over $50, but Commerce cannot require those receipts before paying reimbursements, except for cause or an audit.

Higher fee to record property documents

If you record a document with the county auditor, you pay a $183 surcharge per document, on top of other fees. The law exempts birth, marriage, divorce, and death records; marriage licenses; documents already exempt by law; and filings that record or satisfy government or wage liens.

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Sponsors & Cosponsors

Sponsor

  • Emily Alvarado

    Democratic • House

Cosponsors

  • Jessica Bateman

    Democratic • Senate

  • June Robinson

    Democratic • Senate

  • Noel Frame

    Democratic • Senate

  • Steve Conway

    Democratic • Senate

  • T'wina Nobles

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 121 • No: 71

Senate vote • 3/10/2026

Final Passage as Amended by the House

Yes: 30 • No: 19

House vote • 3/5/2026

Final Passage as Amended by the House

Yes: 61 • No: 34 • Other: 3

Senate vote • 2/13/2026

3rd Reading & Final Passage

Yes: 30 • No: 18 • Other: 1

Actions Timeline

  1. Effective date 6/11/2026.

    3/27/2026Senate

  2. Chapter 230, 2026 Laws.

    3/27/2026Senate

  3. Governor signed.

    3/27/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. Speaker signed.

    3/11/2026legislature

  6. President signed.

    3/11/2026legislature

  7. Passed final passage; yeas, 30; nays, 19; absent, 0; excused, 0.

    3/10/2026Senate

  8. Senate concurred in House amendments.

    3/10/2026House

  9. Third reading, passed; yeas, 61; nays, 34; absent, 0; excused, 3.

    3/5/2026Senate

  10. Rules suspended. Placed on Third Reading.

    3/5/2026Senate

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

    3/5/2026Senate

  12. Rules Committee relieved of further consideration. Placed on second reading.

    3/3/2026Senate

  13. FIN - Executive action taken by committee.

    3/2/2026Senate

  14. Minority; without recommendation.

    3/2/2026Senate

  15. Minority; do not pass.

    3/2/2026Senate

  16. FIN - Majority; do pass with amendment(s).

    3/2/2026Senate

  17. Referred to Rules 2 Review.

    3/2/2026Senate

  18. First reading, referred to Finance.

    2/17/2026Senate

  19. Third reading, passed; yeas, 30; nays, 18; absent, 0; excused, 1.

    2/13/2026Senate

  20. Rules suspended. Placed on Third Reading.

    2/13/2026Senate

  21. Floor amendment(s) adopted.

    2/13/2026Senate

  22. 2nd substitute bill substituted.

    2/13/2026Senate

  23. Placed on second reading by Rules Committee.

    2/12/2026Senate

  24. Minority; without recommendation.

    2/9/2026Senate

  25. Minority; do not pass.

    2/9/2026Senate

Bill Text

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