WashingtonHB 19742025-2026 Regular SessionHouseWALLET

Establishing land banking authorities.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Long-term affordable homes for renters and buyers

Beginning June 11, 2026, at least 50% of land bank property leased or sold must carry a binding affordability restriction. Housing covered by that restriction must stay affordable for at least 30 years. Rental homes must be affordable to households earning no more than 80% of the area’s median income. Owner-occupied homes must be affordable to households earning no more than 120% of that income. These protections do not guarantee an available home or set a specific household rent or purchase price.

Local land banks support affordable housing

Beginning June 11, 2026, Washington cities and counties can approve land banks run by public corporations, housing authorities, or qualifying nonprofits. Approval must spell out the land bank’s public purpose, oversight, and property powers; neighboring counties can partner through an agreement. Land banks can acquire, manage, improve, and prepare property for housing, including clearing titles and addressing liens and taxes. They can sell or lease land below market price to housing developers that meet affordability requirements, without choosing the highest bidder. Land deals must follow applicable housing plans, housing targets, and policies to prevent displacement; no household is guaranteed a home.

Public land banks get tax breaks

Beginning June 11, 2026, public-corporation land banks receive the same tax immunity or exemptions as their creating city, town, or county. Covered property also escapes the annual excise tax otherwise charged to public corporations. Property of land banks owned, operated, or controlled by housing authorities is exempt from state and local taxes and special assessments. Housing authorities cannot make the otherwise allowed payments in place of taxes for property owned by these land banks. The law gives no dollar estimate of savings or required reduction in household rents or home prices.

Nonprofit land banks cannot build housing

Beginning June 11, 2026, a federally tax-exempt 501(c)(3) nonprofit operating a land bank cannot directly build housing. This limits the nonprofit’s development work, not households’ activities.

Land banks gain priority over cities

Beginning June 11, 2026, Washington counties must prioritize transferring tax-foreclosed property to authorized land banks. Counties can negotiate sales without bids, but the price cannot fall below the principal amount of unpaid taxes. Land bank transfers bypass the notice and purchase opportunity otherwise given to the city where the property sits. This supports land bank acquisitions but removes that city’s chance to purchase first.

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