Published on May 19, 2023

The year of housing?

Contact: Carl Schroeder, Shannon McClelland

A glance through the bill chart below will give you an idea of how intense the 2023 legislative session was on affordable housing issues. At least twenty new session laws were the result – not counting the ones that did not bear on city interests.

Given the severity of the housing affordability crisis across the state, it was encouraging to see so much legislative interest in finding solutions. AWC knew that this would be an important year, putting together a Housing Solutions Group that made a set of sweeping and comprehensive proposals.

In our previous housing article, we took stock of those proposals and how many of them were reflected in the laws that the Legislature passed. Spoiler: the Legislature adopted a significant majority of them. We were able to get to support on the middle housing bill, HB 1110, that was so controversial last session. AWC was also able to lead regulatory reforms efforts on design review, SEPA, and permit processing, not to mention infrastructure investments.

Another policy of note, SB 5198 doubled the required length of notice for closure of a mobile home park and setting up a process to allow tenants an opportunity to purchase a park if it’s listed for sale.

The reason for the question mark in the title, however, reflects the one critical area that the Housing Solutions Group recommended that the Legislature did not act on – funding. While the budgets made very significant investments—by far the largest investments in affordable housing that were not driven by federal stimulus dollars—lawmakers were not able to find support to create durable, dedicated, and ongoing new revenues to build more affordable housing.

While the policy work done this year will hopefully bear fruit over time, most of the benefit will accrue to market rate development, unfortunately. While all housing supply is important and needed, cities know and strongly advocate that we need new and greater resources if we are to be successful in achieving the more than 500,000 affordable units that we are asked to plan for in the next twenty years. This piece of the puzzle still needs to be fit into place. Until then, the solution is still incomplete.

Bill #

Description

Status

HB 1110

Middle housing & density mandate

Law; effective July 23, 2023.*

HB 1042

Conversion of existing commercial and mixed-use buildings for residences.

Law; effective July 23, 2023.*

HB 1046

Increases AMI threshold for housing authority projects to 80%.

Law; effective July 23, 2023.

HB 1250

Low-income home rehabilitation program reform.

Law; Multiple effective dates, including an emergency clause.

HB 1267

Rural public facilities tax with workforce housing nexus.

Law; effective July 23, 2023.

HB 1293

Objective design review.

Law; effective July 23, 2023.*

HB 1326

Can waive utility connection fees for certain housing and shelter.

Law; effective July 23, 2023.

HB 1337

ADU mandate.

Gov. signed with partial veto. Effective July 23, 2023.*

HB 1425

New version of the annexation sales tax credit.

Law; effective July 23, 2023. May not impose tax until July 1, 2028.

HB 1474

Covenant homeownership program.

Law; various effective dates.

HB 1695

Broadens definition of affordable housing under surplus property law.

Law; effective July 23, 2023.

SB 5058

It’s not a condo!

Law; effective July 23, 2023.

SB 5198

New standards for mobile home park sales

Law; effective July 23, 2023.

SB 5290

Local permit review.

Law; various effective dates.

SB 5604

Amends HB 1406 (2020) sales tax credit to allow all cities to use revenue for rent assistance.

Law; effective July 23, 2023.

SB 5258

Increasing condos and townhouses for homeownership.

Law; various effective dates.*

SB 5301

Commerce housing programs.

Law; various effective dates.

SB 5386

Document recording fees.

Law; effective July 23, 2023.

SB 5412

Categorical SEPA exemption for housing development.

Law; effective July 23, 2023.

SB 5491

Residential building exits.

Law; effective July 23, 2023.

HB 1026

Local government design review.

Did not pass.

HB 1078

Urban tree and forest management.

Did not pass.

HB 1111

Housing benefit district.

Did not pass.

HB 1149

$4 billion bond bill and Workforce Housing Accelerator Loans

Did not pass.

HB 1167

Residential housing regulations.

Did not pass.

HB 1245

Lot splitting.

Did not pass.

HB  1296

Local permit review.

Did not pass.

HB 1298

Condominiums and townhouses.

Did not pass.

HB 1343

Affordable housing incentive program.

Did not pass.

HB 1351

Minimum parking requirements.

Did not pass.

HB 1401

Housing permit process.

Did not pass.

HB 1402

Urban growth boundaries.

Did not pass.

HB 1449

Project permits/reports.

Did not pass.

HB 1519

Local project review.

Did not pass.

HB 1611

Local government permitting.

Did not pass.

HB 1628

Affordable Homes Act. New REET sources to fund affordable housing.

Did not pass.

SB 5202

$4 billion bond bill and Workforce Housing Accelerator Loans

Did not pass.

SB 5235

ADUs

Did not pass.

SB 5334

Affordable housing funding.

Did not pass.

SB 5364

Lot splitting.

Did not pass.

SB 5466

Transit oriented development.

Did not pass.

SB 5473

Project permit timelines.

Did not pass.

*Implementation dates are based on the date of the city’s next periodic comprehensive plan update required under the Growth Management Act.

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