Bill > SB5776

This bill aims to promote housing affordability by creating an "American dream home" program that provides incentives for constructing small, affordable single-family homes for low-income households. The bill allows local jurisdictions to issue permits for homes up to 1,500 square feet that are designed for owners earning 70% or less of the area median income, with restrictions ensuring the homes remain affordable for seven years after initial sale. The program offers several financial incentives, including capped permitting fees (no more than $1,250), offset impact fees, a state tax credit for builders equal to 4% of the home's selling price, and a seven-year property tax exemption. Cities and counties must report annually on the number of permits issued, and the state intends to provide additional down payment assistance to buyers. The program is designed to run from 2026 to 2036, with the goal of encouraging residential housing development for low-income households by reducing financial barriers to home ownership. Importantly, the bill defines an "affordable" home as one where housing costs (including utilities) do not exceed 30% of the family's income, and it applies specifically to owner-occupied dwellings serving low-income households.

Housing and Urban Affairs

https://app.leg.wa.gov/billsummary?BillNumber=5776&Year=2025&Initiative=false