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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)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

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

Housing grants cover more resident needs

Beginning June 11, 2026, Affordable Housing for All grants no longer require proof that projects need rent supplements for operating costs. One grant category covers housing in the state's housing trust fund portfolio that is affordable to extremely low-income households. Another covers dedicated permanent supportive housing that has received, or is expected to receive, housing trust fund or other public capital funding. Households served must earn at most 30% of area median income when they move in. Supportive housing grants can cover resident services, basic living and well-being needs, essential maintenance, replacement reserves, and case management. Added support services must help people get or keep housing and be uncovered or only partly covered by Medicaid or other health insurance.

Local governments gain housing funding flexibility

Beginning June 11, 2026, counties and cities can pool housing-tax revenue with other counties, cities, or public housing authorities. Their agreements can pledge receipts to bonds and divide tax or bond proceeds under state law. The law also replaces a required county-city agreement with consultation about funding covered services. This applies when a county did not adopt the earlier services tax before October 9, 2015, but a city did. The county must consult when it later adopts the housing tax after that city's earlier tax.

More ways to support affordable housing

Beginning June 11, 2026, the law expands allowed uses of local housing-tax money. At least 60% of revenue under the primary tax must fund listed housing and related facility costs. Expanded uses include existing housing repairs and upkeep, housing-service facilities, and upkeep of newly built evaluation and treatment centers. Funded housing programs must serve households earning at most 60% of county median income in these groups: people with behavioral health disabilities, veterans, seniors, homeless people or those at risk, unaccompanied homeless youth or young adults, people with disabilities, and domestic violence survivors. Remaining revenue can fund housing upkeep, behavioral health treatment, housing-related services, or rental assistance. Under the related housing-tax program, tax or bond money can maintain existing and new affordable or supportive housing; income limits are 60% of area median income, or 80% for qualifying owner-occupied housing.

Broader tax exemption for emergency housing

Beginning June 11, 2026, the emergency-housing property tax exemption uses the state's land-use definition of emergency housing. This replaces the former definition limited to housing and supportive services for up to 60 days. The exemption covers nonprofit housing for low-income homeless people or homeless domestic violence survivors. Housing charges cannot exceed actual operating and maintenance costs. The nonprofit must own the property or receive the exemption's benefit when renting or leasing it.

Property tax relief for recovery housing

The law exempts qualifying nonprofit recovery residences from property taxes levied for collection in 2024 through 2033. It covers real and personal property used to maintain an approved recovery residence registered under state law. Housing charges cannot exceed actual operating and maintenance costs. The nonprofit must own the property or receive the exemption's benefit when it rents or leases. The tax relief goes to the nonprofit or property arrangement, not directly to residents.

Housing grants gain flexibility and recordkeeping

Beginning June 11, 2026, Commerce cannot set an overhead-cost cap below 15% for the two covered housing-grant categories. It must seek to keep existing projects stable, including renewal grants sufficient to support ongoing operations. Affordable Housing for All grantees must keep supporting records for each expense over $50. Commerce generally cannot demand those records before approving reimbursement, except for cause or an audit.

Sponsors & Cosponsors

Sponsor

  • Emily Alvarado

    Democratic • Senate

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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