Welcome to Growth Management Services’ 2026 legislative update newsletter.
This year’s 60-day session moved quickly but saw a flurry of legislative activity. Of 130 bills filed with potential impact for communities planning under the Growth Management Act, just 16 made it to Governor Ferguson’s desk. While that may seem like a low number, it reflects an intentional approach by the Legislature to focus on the housing crisis and energy development and transmission.
In general, new laws from this years’ session will impact how local governments plan for residential density, site supportive housing and process building permits. Read on below for a breakdown of new laws relevant to communities planning under the GMA.
This session also saw additional budget reductions, including for Commerce periodic update grant funding, which experienced a $1 million decrease in 2025 followed by a nearly $3 million reduction in 2026. If your jurisdiction has a 2026 periodic update deadline, you may be eligible to access remaining funding during this fiscal year. Apply for amended PUG funding by April 15.
Local governments may also be interested in a new law (HB 2442) that provides flexibility for local revenue tools, such as to extend levy lid lifts for up to 10 years, to expand the allowable uses of local real estate excise tax revenues, and other housing revenue options.
Looking ahead, we expect the 2027 legislative session will bring renewed energy and discussion on the state’s subdivision code, heat response plans, shrubsteppe habitat, agritourism, cultural resource protections and access to services necessary for health including grocery stores and pharmacies.
We look forward to working alongside local governments to implement new laws from this year’s session. We also want to make sure we are providing the support you need. Please share your feedback on our services and programs with your regional planner.
Finally, there are several new laws we would like to highlight for local governments:
SB 6026: Residential development in commercial and mixed-use zones
- Effective date: June 11, 2026
- Applies to: Cities with 30,000+ population and non-rural counties
- Adoption: Ordinances due by December 2027
This bill aims to address Washington’s housing shortage by allowing more residential development in areas zoned for commercial or mixed-use. Specifically, it requires cities with more than 30,000 residents and non-rural counties to allow residential uses in these zones within their urban growth areas, with certain exceptions.
HB 2266: Encouraging permanent supportive housing, transitional housing, indoor emergency housing, and indoor emergency shelters
- Effective date: June 11, 2026
- Applies to: All counties and cities
- Adoption: Ordinances due by June 2028 or with next periodic update, whichever is sooner.
This bill aims to make it easier to site supportive, transitional and emergency housing and shelters (STEP). This bill uses a new approach to regulating STEP housing types, including to regulate permanent supportive housing and transitional housing as residential uses and indoor emergency shelters and housing as uses with external impacts. The bill also outlines what can be regulated through permitting versus regulating as a funder.
SB 6027: Modifying certain funding and exemptions related to providing and maintaining affordable housing
- Effective Date: June 11, 2026
- Applies to: Counties and cities
This bill adjusts the allowable authorization for local taxes that support the development and operation of affordable housing, emergency shelter, and behavioral health services. The bill changes the allowable uses, interlocal planning requirements, and definitions for taxes adopted at the local level – local sales and use tax housing and related services, local mental health and chemical dependency sales and use tax, local sales and use tax for affordable and supportive housing, and property tax exemptions for emergency housing.
HB 2418: Concerning permit review processes
- Effective date: June 11, 2026
- Applies to: Cities, counties, special purpose districts, and state agencies
- Adoption: Ordinances due by June 30, 2027
Building from SB 5290 (2023), this bill further refines the Local Project Review Act (RCW 36.70B) to streamline permit review processes for residential development. The bill has several key provisions, including:
- Clarifies that a local government’s determination of whether a project permit application is complete is procedural, rather than substantive.
- Subjects state agencies to the same timeline requirements for permit review as local governments and imposes the same 20% refund requirement for missing review deadlines.
- Requires local governments to designate a single point of contact for residential permit applications. This same official must also be the State Environmental Policy Act (SEPA) responsible official for the project if one is needed.
HB 1345: Establishing limitations on detached accessory dwelling units outside of UGAs
- Effective date: June 11, 2026
- Applies to: Fully planning counties
- Adoption: Optional
This bill is intended to provide more housing options outside of urban growth areas while protecting rural character and natural resources. The bill allows counties to permit one detached accessory dwelling unit (DADU) per lot outside an urban growth area, with certain restrictions. Adopting standards consistent with this bill is optional, but counties should be aware that there are code enforcement and reporting requirements if they opt in.
HB 1960: Renewable energy siting and excise taxes
- Effective date: Jan. 1, 2028
- Applies to: Counties
- Adoption: Model ordinance required to qualify for grants
This bill changes how renewable energy facilities are taxed. Starting in 2028, large-scale wind, solar and battery energy storage facilities will be exempt from property taxes and will instead pay an excise tax based on generation capacity.
Revenue generated by the excise tax will fund a new grant program administered by Commerce Growth Management Services to distribute funds back to the communities hosting these facilities.
To be eligible for grants, counties will have to adopt regulations consistent with or less restrictive than a model ordinance on siting energy facilities that Commerce will develop by July 2028.Beginning in 2031, counties can impose a local version of the excise tax if certain conditions are met.
HB 1974: Establishing land banking authorities
- Effective date: June 11, 2026
- Applies to: Cities and counties
- Adoption: Optional
This bill authorizes cities and counties to establish land banking authorities operated by public corporations, housing authorities or non-profits to acquire and hold property while preparing it for affordable housing development. At least 50%of the land or property leased or sold by a land bank authority must include covenants or deed restrictions that the housing units developed or operated must maintain affordability requirements for at least 30 years. There are annual reporting requirements if a land banking authority is authorized.
HB 1859: Affordable housing on religious-owned properties
- Effective date: June 11, 2026
- Applies to: All incorporated cities and towns
This cleanup bill corrects affordability requirements to allow affordable housing projects on property owned by a religious organization more financing options. This bill reduced the affordable housing set aside requirement from 100%affordable units to 50% or 20%, depending on the project’s income restrictions.
HB 2269: Middle housing in certain rural areas
- Effective date: June 11, 2026
- Applies to: Fully planning counties
This is another technical cleanup bill, amending the law to be less restrictive. The bill allows development of middle housing within limited areas of more intensive rural development (LAMIRD) within a rural county to be located on sites served by large on-site sewage systems. Previously, these developments were required to be served by public sewer systems.
HB 2239: Family burial grounds
- Effective date: June 11, 2026
- Applies to: All cities and counties
This bill is intended to allow the establishment or extension of a family burial ground under certain conditions. Local governments should be aware that they can regulate family burial grounds beyond what is in Title 68 RCW. Recommendation authority on the establishment or extension of family burial grounds can be given to planning commissions.