Dear friends and neighbors,

Addressing the shortage of affordable housing in Seattle and across the state was a top priority for the 2025 Legislature. By the time we adjourned last month, lawmakers had approved several significant bills to expand our housing supply, support homeownership opportunities, and provide stability for renters.

Yesterday I was proud to join Gov. Bob Ferguson as he signed my bill to protect tenants from unfair rental agreements. SB 5313 will expand the list of prohibited provisions in rental contracts, including banning nondisclosure agreements about lease terms and banning lease provisions that would prevent tenants from joining class action lawsuits.

Here are several other bills the legislature passed this session that will increase housing supply, cut red tape and lower construction costs, and increase density and middle housing options:

  • House Bill 1217 will cap rent increases across the state annually at 7% plus inflation or 10%, whichever is less. This will help prevent extreme price hikes that have forced too many people out of their homes.
  • SB 5148 provides better enforcement for zoning and other changes we have made at the state level to promote housing construction and establishes a builder’s remedy for noncompliant cities, so more housing is built.
  • HB 1491 supports transit-oriented development by requiring denser housing near major transit stops with affordability requirements and offsets, including a 20-year property tax exemption.
  • SB 5184 creates flexibility for minimum parking requirements and eliminates them for affordable, senior, and small-scale housing. This will reduce costs and will make it cheaper and easier to build more affordable housing.
  • HB 1403 updates the warranty laws for condominium construction to make construction of affordable ownership housing more feasible.
  • SB 5471 allows up to four units of middle housing per lot in urban and rural areas.
  • HB 1096 requires cities to allow administrative lot splits and concurrent permit review to support small-scale infill.

The final capital budget approved by the legislature and awaiting signature by Governor Ferguson includes a record-setting $605 million for the construction of affordable housing projects through the Housing Trust Fund. This investment directly builds affordable homes for Washingtonians of all income levels, from shelters and recovery housing to senior living and homeownership opportunities.

The Legislature also passed HB 1696 to strengthen our landmark Covenant Homeownership Program by expanding down payment and closing cost assistance for first-time homebuyers from economically disadvantaged backgrounds.

Thank you for taking the time to read this newsletter. If you missed my newsletter on support for public education, it is available on my website. Please don’t hesitate to reach out to me with any questions at Jamie.Pedersen@leg.wa.gov.

Best wishes,

Jamie