WashingtonCities and counties may authorize land banks for affordable housing
Effective June 11, 2026, cities and counties may authorize eligible groups to hold and prepare property for affordable housing.
What it does
Cities and counties may authorize public or nonprofit groups to run land banks that acquire and prepare property for affordable housing.
Land banks may prepare property and offer it below market price for affordable housing. At least half of property they lease or sell must keep homes affordable for 30 years or more.
Qualifying nonprofits that operate land banks are exempt from property tax on property they own. The law also provides tax treatment for land bank property held by public corporations and housing authorities.
Argument forLand banks could prepare properties and offer them below market price, which may help developers build affordable homes.
Argument againstThe 30-year affordability rules and detailed public reports could limit land banks’ flexibility to change how they use or transfer property.
More detail
Cities and counties may authorize eligible entities to establish and operate land banks. Eligible operators are public corporations, public housing authorities, and nonprofits exempt under federal tax law. The city or county must approve the land bank by ordinance or resolution and state its public purpose and oversight. Two or more neighboring counties may authorize a land bank through an interlocal agreement.
Land banks may acquire, prepare, lease, sell, or transfer property for affordable housing. These rules apply to real property handled by a land bank authority for affordable housing. Property decisions must follow applicable housing plans and targets, including local policies to prevent displacement. At least half of the property leased or sold must have a legal promise to keep the homes affordable for at least 30 years. Covered rental homes must serve households at or below 80 percent of area median income; owner-occupied homes must serve households at or below 120 percent. A tax-exempt nonprofit operating a land bank may not build or construct housing. The affordability promise must last at least 30 years for the covered property.
Certain land bank property is exempt from property taxes. The nonprofit exemption covers all real and personal property owned by a qualifying nonprofit entity operating a land bank authority. The nonprofit operator must qualify for federal tax-exempt status under section 501(c)(3). The law provides tax treatment for land bank property owned by public corporations or housing authorities, with exceptions and limits in the amended statutes.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 27Effective date 6/11/2026.Latest
- Mar 27Chapter 233, 2026 Laws.Major
- Mar 27Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 12President signed.Major
- Mar 12Speaker signed.Passed Senate
- Mar 11Passed final passage; yeas, 59; nays, 37; absent, 0; excused, 2.Passed House
- Vote recorded Final Passage as Amended by the Senate (#19). Result: pass.Lower
- Mar 11House concurred in Senate amendments.
- Mar 5Third reading, passed; yeas, 30; nays, 19; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage as Amended by the Senate (#34). Result: pass.Upper
- Mar 5Rules suspended. Placed on Third Reading.Minor
- Mar 5Committee amendment(s) adopted with no other amendments.
- Mar 5Placed on second reading by Rules Committee.Minor
- Mar 2Passed to Rules Committee for second reading.
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2WM - Majority; do pass with amendment(s).Minor
- Mar 2Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Feb 26Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 19Referred to Ways & Means.Minor
- Feb 18Minority; without recommendation.Minor
- Feb 18And refer to Ways & Means.Minor
- Feb 18HSG - Majority; do pass.Minor
- Feb 18Executive action taken in the Senate Committee on Housing at 10:30 AM.
- Feb 16First reading, referred to Housing.Minor
- Feb 12Third reading, passed; yeas, 59; nays, 37; absent, 0; excused, 2.Minor
- Vote recorded 3rd Reading & Final Passage (#20). Result: pass.Lower
- Feb 12Rules suspended. Placed on Third Reading.Minor
- Feb 12Floor amendment(s) adopted.
- Feb 122nd substitute bill substituted (FIN 26).Major
- Feb 11Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 9Referred to Rules 2 Review.Minor
- Feb 6Minority; without recommendation.Minor
- Feb 6FIN - Majority; 2nd substitute bill be substituted, do pass.Major
- Feb 6Executive action taken in the House Committee on Finance at 8:00 AM.
- Feb 3Public hearing in the House Committee on Finance at 8:00 AM.
- Jan 27Referred to Finance.Minor
- Jan 22Minority; without recommendation.Minor
- Jan 22HOUS - Majority; 1st substitute bill be substituted, do pass.Major
- Jan 22Executive action taken in the House Committee on Housing at 8:30 AM.
- Jan 19Public hearing in the House Committee on Housing at 1:30 PM.
- Jan 12By resolution, reintroduced and retained in present status.
- 2025
- Feb 18Public hearing in the House Committee on Housing at 4:00 PM.
- Feb 14First reading, referred to Housing.Introduced
HousingTaxes & Budget