SSB 6214
In CommitteeSenate
Land banking authorities
Establishing land banking authorities.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes land banking authorities in Washington counties to help increase the supply of affordable housing, especially in urban areas. It gives counties the power to create land banks—public or nonprofit entities—that can acquire, hold, and lease or sell land for affordable housing, with strict affordability and equity requirements. The bill also creates a grant program to support these efforts and updates existing laws to make it easier for public agencies to transfer land to land banks.
- Creates land banking authorities—public or nonprofit entities authorized by counties—to acquire, hold, lease, and sell land for affordable housing within urban growth areas.
- Requires land banks to maintain a housing mix: at least 33% affordable to extremely low-, very low-, and low-income households, up to 33% market rate, and moderate-income housing.
- Mandates 99-year affordability covenants on all housing developed on land sold or leased by land banks.
- Establishes a competitive grant program administered by the Housing Finance Commission, with eligibility tied to counties levying a local housing tax, removing barriers to permanent supportive housing, and expediting permitting for low-income housing.
- Requires counties to give land banks priority access to surplus and tax-foreclosed property, and to establish land bank advisory boards with diverse expertise and racial/ethnic representation.
- Amends existing laws to clarify that land banks qualify for tax exemptions (for nonprofits) and to streamline public property transfers for affordable housing purposes.
Who is affected
- Counties — Counties gain the authority to create land banking entities to support affordable housing development, and must appoint advisory boards and ensure compliance with affordability requirements.
- Cities and towns — Cities and towns may receive priority access to surplus land from counties and must be notified before tax-foreclosed properties are sold; they may also purchase such properties for affordable housing and transfer them to land banks or housing authorities.
- Land banks — Land banks—public or nonprofit entities authorized by counties—gain new powers to acquire, hold, lease, and sell land for affordable housing, with requirements to prioritize equity and affordability.
- Low- and moderate-income households — Low- and moderate-income households benefit from increased access to affordable housing units, including homeownership opportunities with long-term affordability protections.
- Nonprofit housing developers and community land trusts — Nonprofit housing developers and community land trusts gain new partnership opportunities with land banks and may receive land at below-market rates to develop affordable housing.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill mandates that at least one-third of housing developed on land bank properties be affordable to extremely low-, very low-, and low-income households, with 99-year affordability covenants—significantly expanding long-term affordable housing access for Washington’s lowest-income renters and first-time homebuyers.
HousingPeopleRef: Sec. 4(9); Sec. 4(10); Sec. 12(5)-(9)By prioritizing land banks for surplus and tax-foreclosed property and streamlining public property transfers, the bill dramatically lowers acquisition costs and barriers for affordable housing development—directly benefiting low- and moderate-income households seeking stable, affordable homes.
HousingPeopleRef: Sec. 2; Sec. 4(4); Sec. 9The competitive grant program—funded by legislative appropriation and tied to local housing tax levies—provides critical upfront capital for land acquisition and infrastructure, enabling nonprofits and public agencies to develop housing that would otherwise be financially unviable for low-income households.
HousingPeopleRef: Sec. 6; Sec. 6(3)(a)-(c)Mandating racial/ethnic representation on advisory boards and requiring displacement mitigation planning helps address historical inequities in housing and ensures anti-displacement protections—benefiting historically marginalized communities, especially Black and Indigenous residents.
Rights & LibertiesPeopleRef: Sec. 3; Sec. 4(2); Sec. 5(3)-(6)Allowing land banks to sell/lease at below-market rates and prioritize community needs (not highest bidder), plus support for community land trusts and shared-equity models, expands homeownership pathways for underrepresented minorities and first-time buyers.
HousingPeopleRef: Sec. 4(5)-(6); Sec. 5(7)-(8)
Potential Concerns (5)
Counties must levy a local tax dedicated to affordable housing to be eligible for state grants, which imposes a new mandatory local tax burden on residents—especially property owners—without guaranteeing proportional local benefit or offsetting revenue increases.
Local GovernmentPeopleRef: Sec. 6(3)(a)Nonprofit land banks receive full property tax exemptions, reducing county property tax revenue—potentially affecting school funding and other local services—while the bill offers only partial offsets via new excise taxes on certain public corporations, which may not fully compensate for lost revenue across all counties.
Local GovernmentLean peopleRef: Sec. 11; Sec. 10(1)(b)(v)The 99-year affordability covenant and housing mix requirement may reduce long-term flexibility for developers and limit housing supply in high-demand markets where market-rate units are needed to cross-subsidize affordability, potentially slowing overall housing production.
HousingPeopleRef: Sec. 4(9); Sec. 4(10)Counties must remove barriers to permanent supportive housing and expedite permitting for low-income housing to qualify for grants—requirements that may strain local planning and permitting capacity, especially in smaller or under-resourced jurisdictions.
Local GovernmentRef: Sec. 6(3)(b)-(c)The provision allowing land banks to sell land for non-housing purposes (e.g., grocery stores, parks) if affordability is “not financially feasible” creates a potential loophole that could dilute the housing focus and reduce long-term affordable unit production if not rigorously enforced.
HousingLean peopleRef: Sec. 4(7)
Who Is Most Affected
Counties gain new authority and funding tools to address housing shortages, but must levy new local taxes and absorb administrative costs. Smaller counties may face disproportionate burden relative to benefit.
Low- and moderate-income households benefit most directly—through increased access to affordable rental and ownership units with long-term affordability protections—especially in urban areas where land costs are prohibitive.
Nonprofit housing developers and community land trusts gain new partnership opportunities, access to low-cost land, and eligibility for grant funding—expanding their capacity to serve vulnerable populations.
Cities and towns benefit from priority access to surplus/foreclosed land and can transfer properties to land banks, but may face increased permitting and compliance obligations under the bill’s requirements.
Property owners in counties that levy the required local housing tax may face higher property tax bills, but could benefit from increased neighborhood stability and property values if affordable housing reduces displacement pressure.