Bill > HB2027

This bill aims to increase the supply of affordable and workforce housing by modifying real estate excise taxes and creating new mechanisms for housing funding. The legislation introduces a progressive real estate transfer tax on high-value property sales, with rates increasing for properties sold at $3,051,000 and above. The tax revenues will be distributed across several housing-related accounts, including a new Developmental Disabilities Housing and Services Account (receiving 40% of funds), an Affordable Housing for All Account (40%), a Housing Stability Account (10%), and the Washington Housing Trust Fund (10%). The bill finds that Washington state faces a significant housing affordability crisis, with a need to build over 500,000 new homes for very low-income residents over the next 20 years. It allows counties to implement new, tiered real estate excise taxes with rates varying based on property sale prices, and mandates that these revenues be used for capital projects, housing relocation assistance, and supporting existing housing infrastructure. The legislature explicitly recognizes that the private real estate market has not provided adequate affordable housing options and that government intervention is necessary to address housing instability, particularly for low-income, disabled, senior, veteran, and farmworker populations. The bill takes effect on January 1, 2026, and is officially named the "Affordable Homes Act."

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2027&Year=2025&Initiative=false