OLYMPIA — A bill aimed at addressing displacement, particularly in historically marginalized communities, passed the Senate Wednesday.
Senate Bill 5138, sponsored by Sen. Rebecca Saldaña (D-Seattle), allows counties with convention and trade centers and populations of 1.5 million or more — like in King County — to allocate a portion of short-term rental tax revenue not just for affordable housing but community-initiated equitable development projects.
“Equitable development is about more than just creating housing — it’s about building spaces that are alive with the culture and needs of the people who call them home,” Saldaña said. “This bill makes sure short-term rental tax revenue goes toward community-driven projects that include not just affordable, family-sized housing, but also childcare and cultural spaces. By strengthening the heart of our neighborhoods, we can provide the stability and opportunities that help communities stay rooted and thrive.”
Washington has long faced a housing affordability crisis, with gentrification and displacement impacting many communities, especially people of color. Currently, Seattle has the authority to use short-term rental tax funds for both affordable housing and community-led initiatives. Saldaña’s bill extends this authority to all of King County, allowing the funds to support local projects such as cultural spaces, childcare facilities, and critical services.
“Communities have advocated for a funded Equitable Development Initiative in King County for over three years. Short-term lodging dollars have been foundational to Seattle, where over 75 community-led projects are underway,” said Yordanos Teferi, executive director of the Multicultural Community Coalition. “This bill paves the way for King County to do the same and keep our communities rooted in place throughout the county.”
The bill now moves to the House for further consideration.
