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WashingtonHB 14912025-2026 Regular SessionHouseWALLET

Promoting transit-oriented housing development.

Sponsored By: Julia Reed (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 7 benefits, 1 costs, 5 mixed.

New association rules cannot block housing

New association documents cannot prohibit multifamily housing or transit-area density that cities must allow. They also cannot impose off-street parking rules that conflict with the law. These protections cover associations and communities fully or partly within station areas, for documents created after the applicable section takes effect. The association and condominium provisions expire January 1, 2028; the separate common-interest community provision states no expiration.

Cities must allow more transit-area housing

Beginning July 27, 2025, station areas cover qualifying lots within urban growth areas, measured by walking distance from transit. Rail areas generally extend one-half mile; commuter rail areas extend one-quarter mile in cities with 15,000 people or fewer. Bus areas extend one-quarter mile from qualifying rapid transit stops with required planning, environmental review, and permanent facilities; express-bus-only stops do not qualify. Covered cities must allow multifamily housing and mixed-use buildings, without residential density caps. Average floor area ratios must reach 3.5 near rail and 2.5 near buses; exempting up to 25% of bus areas raises the remaining average to 3.0. This ratio compares building space with developable land, excluding public facilities and most critical areas and buffers; qualifying aquifer recharge areas count. Specified shoreline, historic, industrial, agricultural, tsunami-risk, and other lots have exclusions, while health and safety protections remain. One city planning group must comply by December 31, 2029, or an earlier qualifying progress-report deadline; other listed cities have six months after their first plan update due after December 31, 2024. Cities must address new station areas at later plan updates or progress reports after transit is completed or funded, and Commerce must approve station-area designation changes.

Extra building space for transit housing

Cities must allow an extra 1.5 floor area ratio for station-area buildings with all affordable or workforce units for 50 years. Buildings dedicated to permanent supportive housing also receive that extra capacity. Floor space for apartments with at least three bedrooms does not count toward ratio limits, though cities may require affordability. In bus station areas, cities must allow taller and denser buildings built entirely with qualifying mass timber products. These rules allow more building space but do not set housing prices or guarantee construction.

Transit housing gets simpler environmental review

Residential and mixed-use projects in station areas receive a categorical exemption from State Environmental Policy Act review. The Department of Ecology can set exceptions to that exemption. This removes a review requirement for covered projects but does not eliminate other development rules.

Transit housing projects pay lower fees

Station-area projects claiming the specified station-area multifamily property-tax exemption receive a 50% cut in system-improvement impact fees. The savings equal half of the eligible fee before the reduction. The law does not state the fee amounts or require those savings to reduce residents' housing costs.

Transit housing drops most parking mandates

Cities cannot require off-street car parking for residential or mixed-use projects in station areas, except marked disability or short-term delivery spaces. Exceptions cover Commerce-certified safety studies and city areas within one mile of a Washington commercial airport with at least 9,000,000 annual passenger boardings. A proposed lack of parking cannot itself trigger a state environmental significance finding. When projects provide extra residential parking, cities may require spaces to be shared between affordable and market-rate units. Cities may also count some or all separate parking charges in affordable rentals' monthly costs.

Transit housing must preserve affordable homes

New station-area buildings must keep one of three housing set-asides for at least 50 years. They must provide 10% affordable units, or 20% workforce units. A third option allows 10% workforce units when at least 10% of all units have three or more bedrooms. Exceptions cover qualifying density approvals before January 1, 2025, qualifying city affordability rules adopted before December 31, 2025, and mandatory local affordable-housing programs—not optional ones. Cities must identify the applicable rules for specified exempt properties in planning documents or city law.

State housing rules replace late city plans

Commerce must publish a model transit-housing ordinance by June 30, 2027. It overrides local development rules when a city misses its compliance deadline, until the city completes the required changes. Commerce may approve substantially similar station-area plans adopted with implementing rules by June 30, 2026. Approved local actions avoid growth-management and state environmental appeals, but Commerce's final decision remains appealable to the Growth Management Hearings Board. Cities may keep public-benefit incentive programs enacted before January 1, 2025, when their plans and rules provide substantially similar building capacity.

Transit housing gets long-term tax breaks

Qualifying multifamily projects fully or partly within city station areas receive a 20-year property-tax exemption tied to station-area affordability requirements. County-approved projects must also meet the station-area density requirements. Owners must record an agreement securing affordability for at least 50 years; the exemption starts January 1 after certification. Cities must approve qualifying applications unless they authorize the law's other specified 20-year exemption. Cities with station areas gain eligibility, and otherwise ineligible cities have an added eligibility path through December 31, 2031, subject to the program's specified requirements. No new exemption is available on or after January 1, 2032; these property-tax changes apply to taxes collected in 2026 and later.

Cities get support for transit housing

Subject to approved funding, Commerce must run a grant program to help cities implement transit-area housing requirements. Grants can pay for infrastructure, station-area planning, early project work, and staff. The law does not set a total funding amount or grant size.

Park-and-ride sites enter housing pilot

The transportation department must review surplus property in a county with over 2,000,000 residents and a municipal transit system. With county consultation, it must select up to three park-and-ride sites for housing meeting the law's density and affordability requirements. Eligible sites have 400–500 stalls along State Route 99, 500–900 along Interstate 405, or 300–1,000 in the county's south. The department may replace highway-use restrictions with affordable-housing restrictions and cannot reserve a right to reclaim pilot property, though other legal remedies remain.

Housing tax breaks require affordability checks

Cities with station areas must set application, income, rent, demolition, site-use, and building standards for multifamily tax exemptions. Owners must certify compliance with the applicable affordable-housing requirements and report annually. Failure to comply can block certification, cancel the exemption, and require tax repayment. The law broadens these compliance references to affordability requirements throughout the multifamily tax-exemption chapter.

Cities can delay density over displacement

Cities can seek Commerce approval to delay station-area density rules or use different floor area ratios for five years. The area must have a high risk of residents being displaced. Cities must submit an analysis or map and a plan identifying available policies to protect residents. Each additional five-year period requires Commerce approval and evidence that displacement risk continues.

Sponsors & Cosponsors

Sponsor

  • Julia Reed

    Democratic • House

Cosponsors

  • Adison Richards

    Democratic • House

  • Alex Ramel

    Democratic • House

  • Beth Doglio

    Democratic • House

  • Cindy Ryu

    Democratic • House

  • Davina Duerr

    Democratic • House

  • Edwin Obras

    Democratic • House

  • Emily Alvarado

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Greg Nance

    Democratic • House

  • Joe Fitzgibbon

    Democratic • House

  • Julio Cortes

    Democratic • House

  • Lauren Davis

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Liz Berry

    Democratic • House

  • Mary Fosse

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Sharlett Mena

    Democratic • House

  • Shaun Scott

    Democratic • House

  • Shelley Kloba

    Democratic • House

  • Strom Peterson

    Democratic • House

  • Tarra Simmons

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 145 • No: 96

House vote • 4/22/2025

Final Passage as Amended by the Senate

Yes: 57 • No: 39 • Other: 2

Senate vote • 4/15/2025

3rd Reading & Final Passage as Amended by the Senate

Yes: 30 • No: 18 • Other: 1

House vote • 3/5/2025

3rd Reading & Final Passage

Yes: 58 • No: 39 • Other: 1

Actions Timeline

  1. Effective date 7/27/2025.

    5/13/2025House

  2. Chapter 267, 2025 Laws.

    5/13/2025House

  3. Governor signed.

    5/13/2025legislature

  4. Delivered to Governor.

    4/25/2025legislature

  5. President signed.

    4/24/2025legislature

  6. Speaker signed.

    4/23/2025legislature

  7. Passed final passage; yeas, 57; nays, 39; absent, 0; excused, 2.

    4/22/2025House

  8. House concurred in Senate amendments.

    4/22/2025House

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

    4/15/2025House

  10. Rules suspended. Placed on Third Reading.

    4/15/2025House

  11. Floor amendment(s) adopted.

    4/15/2025House

  12. Committee amendment not adopted.

    4/15/2025House

  13. Placed on second reading by Rules Committee.

    4/11/2025House

  14. Passed to Rules Committee for second reading.

    4/8/2025House

  15. Minority; do not pass.

    4/7/2025House

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

    4/7/2025House

  17. Referred to Ways & Means.

    3/27/2025House

  18. And refer to Ways & Means.

    3/26/2025House

  19. Minority; without recommendation.

    3/26/2025House

  20. HSG - Majority; do pass with amendment(s).

    3/26/2025House

  21. First reading, referred to Housing.

    3/7/2025House

  22. Third reading, passed; yeas, 58; nays, 39; absent, 0; excused, 1.

    3/5/2025House

  23. Rules suspended. Placed on Third Reading.

    3/5/2025House

  24. 3rd substitute bill substituted.

    3/5/2025House

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

    3/4/2025House

Bill Text

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