Bill > HB1516

This bill requires the Washington State Office of the Insurance Commissioner to conduct a comprehensive study on insurance coverage options for permanently affordable homeownership units. The study aims to explore ways to reduce construction defect liability costs while maintaining adequate insurance coverage. The insurance commissioner will collaborate with nonprofit organizations, government entities, insurers, construction industry representatives, and state associations to collect and analyze data. The study must include an actuarial analysis comparing insurance risk pools for nonprofit and government-sponsored affordable housing with for-profit condominium models, and examine potential strategies to lower insurance costs. By December 31, 2026, the commissioner must submit a report to the legislature with findings and recommendations, including potential new insurance mechanisms. The bill defines "permanently affordable homeownership" as housing units with specific affordability restrictions, such as resale limitations, sponsor organization purchase rights, and long-term affordability covenants. The study will be funded through the insurance commissioner's regulatory account, and the bill's provisions will expire on December 31, 2027, unless specific funding is provided in the omnibus appropriations act by June 30, 2025.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1516&Year=2025&Initiative=false