WA State: SB 5659 Mandated Home Construction Levels (Proposed)
Senate Bill 5659 aims to address Washington's severe housing shortage by mandating increased home construction at the local level. The bill begins by acknowledging the state's critical need for over a million new homes and emphasizes the crucial role local governments play in housing development due to their permitting authority. It expresses the legislature's intent to collaborate with local and state entities to boost new home construction and alleviate the shortage within the next decade.
The core of the bill requires every city, town, and county with permitting power to approve enough new homes to eliminate their proportional share of the statewide housing shortage by 2035. The Department of Commerce is tasked with calculating each jurisdiction's proportional share by April 1, 2026, using available data and expert analysis, and then publishing these targets by May 1, 2026.
Starting May 1, 2026, local governments must regularly review their codes and ordinances to identify and amend any local requirements that hinder sufficient home construction to meet their assigned targets. They must also track building permit applications, both received and denied. If a jurisdiction denies more than 33% of applications, it is encouraged to analyze the reasons for these denials and work to increase approvals.
The bill clarifies that it doesn't override existing state laws. However, if a local government finds a state requirement impeding its ability to meet its housing goals, it must report this to the Department of Commerce. The department will then forward these reports to state legislative leaders, who are expected to review these findings and consider amending state laws to ensure local jurisdictions can meet their housing targets by 2035.
Finally, the bill amends RCW 82.45.180, related to real estate excise tax collection and distribution. It stipulates that no investment earnings from the local real estate excise tax account can be distributed to any county, city, or town that fails to meet the requirements of this act. This amendment ties local government compliance with the housing construction mandates to their eligibility for these funds. The bill concludes by designating the new sections related to housing targets as a new chapter within a new title of the Revised Code of Washington.