Deed of trust assignment/fee

AN ACT Relating to exempting assignments or substitutions of 1
previously recorded deeds of trust from the document recording fee 2
and the covenant homeownership program assessment; amending RCW 3
36.22.185; and reenacting and amending RCW 36.22.250.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 36.22.185 and 2025 c 100 s 1 are each amended to 6
read as follows: 7
(1) Beginning January 1, 2024, except as provided in subsection 8
(2) of this section, the county auditor must collect a covenant 9
homeownership program assessment of $100 for each document recorded, 10
which is in addition to any other charge, surcharge, or assessment 11
allowed by law. The county auditor may retain up to one percent of 12
the moneys for collection of the assessment and must remit the 13
remainder of the moneys to the state treasurer to be deposited in the 14
covenant homeownership account created in RCW 43.181.020.15
(2) The assessment imposed in this section does not apply to: (a) 16
Documents recording a birth, marriage, divorce, or death; (b) any 17
recorded documents otherwise exempted from a recording fee or 18
additional assessments under state law; (c) marriage licenses issued 19
by the county auditor; (d) documents recording a name change order 20
under RCW 4.24.130; ((or)) (e) documents recording a federal, state, 21
S-3475.1
SENATE BILL 5929
State of Washington 69th Legislature 2026 Regular Session
By Senators Goehner, Gildon, and Christian
Prefiled 12/22/25. Read first time 01/12/26. Referred to Committee
on Ways & Means.
p. 1 SB 5929
county, city, or water-sewer district, or wage lien or satisfaction 1
of lien ; or (f) assignments or substitutions of previously recorded 2
deeds of trust. 3
Sec. 2. RCW 36.22.250 and 2025 c 408 s 3, 2025 c 100 s 2, and 4
2025 c 74 s 1 are each reenacted and amended to read as follows:5
(1) A surcharge of $183 per instrument shall be charged by the 6
county auditor for each document recorded, which will be in addition 7
to any other charge authorized by law. The following are exempt from 8
this surcharge: 9
(a) Documents recording a birth, marriage, divorce, or death;10
(b) Any recorded documents otherwise exempted from a recording 11
fee or additional surcharges under state law; 12
(c) Marriage licenses issued by the county auditor; ((and))13
(d) Documents recording a federal, state, county, city, or water-14
sewer district, or wage lien or satisfaction of lien; and15
(e) Assignments or substitutions of previously recorded deeds of 16
trust. 17
(2) Funds collected pursuant to this section must be distributed 18
and used as follows: 19
(a) One percent of the total funds collected shall be retained by 20
the county auditor for its fee collection activities;21
(b) 30 percent of the total funds collected shall be retained by 22
the county and used by the county as provided in subsection (3) of 23
this section; 24
(c) 54.1 percent of the total funds collected shall be 25
transmitted to the state treasurer to be deposited in the home 26
security fund account created in RCW 43.185C.060 and shall be used by 27
the department of commerce as provided in subsection (4) of this 28
section; 29
(d) 13.1 percent of the total funds collected shall be 30
transmitted to the state treasurer to be deposited in the affordable 31
housing for all account created in RCW 43.185C.190 and shall be used 32
by the department of commerce as provided in subsection (5) of this 33
section; 34
(e) 1.8 percent of the total funds collected shall be transmitted 35
to the state treasurer to be deposited in the landlord mitigation 36
program account created in RCW 43.31.615 and shall be used by the 37
department of commerce as provided in subsection (6) of this section.38
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(3) The county shall use their portion of the collected funds as 1
follows: 2
(a) Except as provided in (b) of this subsection, up to 10 3
percent for the county's administration and local distribution of the 4
funds collected from the surcharge in this section, and 5
administrative costs related to the county's homeless housing plan;6
(b)(i) At least 75 percent will be retained and used by the 7
county to accomplish the purposes of its local homeless housing plan 8
pursuant to chapter 484, Laws of 2005, unless a city in the county 9
elects, as authorized in RCW 43.185C.080, to operate its own local 10
homeless housing program. 11
(ii) If a city in the county elects, as authorized in RCW 12
43.185C.080, to operate its own local homeless housing program, the 13
10 percent for administrative costs retained under (a) of this 14
subsection and the 75 percent for local homeless housing plans 15
retained under (b) of this subsection must be combined and 16
distributed as follows: For each city in the county that elects as 17
authorized in RCW 43.185C.080 to operate its own local homeless 18
housing program, a percentage of the surcharge assessed under this 19
subsection equal to the percentage of the city's local portion of the 20
real estate excise tax collected by the county shall be transmitted 21
at least quarterly to the city treasurer, without any deduction for 22
county administrative costs, for use by the city for program costs 23
which directly contribute to the goals of the city's local homeless 24
housing plan. Each county or city receiving funds under this 25
subsection (3) may use up to 10 percent of their share of the total 26
funding retained or received under this subsection (3) after the 27
completion of the required city distributions for costs related to:28
(A) The county's administration and local distribution of the 29
funds collected from the surcharge in this section;30
(B) Administrative costs related to the county's homeless housing 31
plan; and 32
(C) Administrative costs related to the city's homeless housing 33
program; 34
(c) At least 15 percent will be retained and used by the county 35
for eligible housing activities, as described in this subsection, 36
that serve extremely low and very low-income households in the county 37
and the cities within a county according to an interlocal agreement 38
between the county and the cities within the county consistent with 39
countywide and local housing needs and policies. A priority must be 40
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given to eligible housing activities that serve extremely low-income 1
households with incomes at or below 30 percent of the area median 2
income. Eligible housing activities to be funded are limited to:3
(i) Acquisition, construction, or rehabilitation of housing 4
projects or units within housing projects that are affordable to very 5
low-income households with incomes at or below 50 percent of the area 6
median income, including units for homeownership, rental units, 7
seasonal and permanent farmworker housing units, units reserved for 8
victims of human trafficking and their families, and single room 9
occupancy units; 10
(ii) Supporting building operation and maintenance costs of 11
housing projects or units within housing projects eligible to receive 12
housing trust funds, that are affordable to very low-income 13
households with incomes at or below 50 percent of the area median 14
income, and that require a supplement to rent income to cover ongoing 15
operating expenses; 16
(iii) Rental assistance vouchers for housing units that are 17
affordable to very low-income households with incomes at or below 50 18
percent of the area median income, including rental housing vouchers 19
for victims of human trafficking and their families, to be 20
administered by a local public housing authority or other local 21
organization that has an existing rental assistance voucher program, 22
consistent with or similar to the United States department of housing 23
and urban development's section 8 rental assistance voucher program 24
standards; and 25
(iv) Operating costs for emergency shelters and licensed 26
overnight youth shelters. 27
(4) The department of commerce shall use the funds from the 28
document recording fee or other fund sources deposited in the home 29
security fund account as follows, except that the department of 30
commerce shall provide counties with the right of first refusal to 31
receive grant funds distributed under (b) of this subsection (4). If 32
a county refuses the funds or does not respond within a time frame 33
established by the department, the department shall make good faith 34
efforts to identify one or more suitable alternative grantees 35
operating within that county. The alternative grantee shall 36
distribute the funds in a manner that is in compliance with this 37
chapter. Funding provided through the office of homeless youth 38
prevention and protection programs created in RCW 43.330.705 is 39
exempt from the county first refusal requirement. 40
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(a) Up to 10 percent for administration of the programs 1
established in chapter 43.185C RCW and in conformance with this 2
subsection (4), including the costs of creating and implementing 3
strategic plans, collecting and evaluating data, measuring and 4
reporting performance, providing technical assistance to local 5
governments, providing training to entities delivering services, and 6
developing and maintaining stakeholder relationships;7
(b) At least 90 percent for homelessness assistance grant 8
programs administered by the department, including but not limited 9
to: Temporary rental assistance; eviction prevention rental 10
assistance per RCW 43.185C.185; emergency shelter and transitional 11
housing operations and maintenance; outreach; diversion; HOPE and 12
crisis residential centers; young adult housing; homeless services 13
and case management for adult, family, youth, and young adult 14
homeless populations and those at risk of homelessness; project-based 15
vouchers for nonprofit housing providers or public housing 16
authorities; tenant-based rent assistance; housing services; direct 17
cash assistance as provided for in RCW 43.185C.220(5)(a); rapid 18
rehousing; emergency housing; acquisition; operations; maintenance; 19
and service costs for permanent supportive housing as defined in RCW 20
36.70A.030 for individuals with disabilities. Grantees may also use 21
these funds in partnership with permanent supportive housing programs 22
administered by the office of apple health and homes created in RCW 23
43.330.181. Priority for use must be given to purposes intended to 24
house persons who are chronically homeless or to maintain housing for 25
individuals with disabilities and prior experiences of homelessness, 26
including families with children. 27
(5) The department of commerce shall use the funds from the 28
document recording fee or other fund sources deposited in the 29
affordable housing for all account as follows: 30
(a) Up to 10 percent for program administration and technical 31
assistance necessary for the delivery programs and activities under 32
this subsection (5); 33
(b) At least 90 percent for the following: 34
(i) Grants for building operation and maintenance costs of 35
housing projects, or units within housing projects, that are in the 36
state's housing trust fund portfolio, are affordable to extremely 37
low-income households with incomes at or below 30 percent of the area 38
median income, and require a supplement to rent income to cover 39
ongoing operating expenses; 40
p. 5 SB 5929
(ii) Grants to support the building operations, maintenance, and 1
supportive service costs for permanent supportive housing projects, 2
or units within housing projects, that have received or will receive 3
funding from the housing trust fund or other public capital funding 4
programs. The supported projects or units must be dedicated as 5
permanent supportive housing as defined in RCW 36.70A.030, be 6
occupied by extremely low-income households with incomes at or below 7
30 percent of the area median income, and require a supplement to 8
rent income to cover ongoing property operations, maintenance, and 9
supportive services expenses. 10
(6) The department of commerce shall use the funds from the 11
document recording fee or other fund sources deposited in the 12
landlord mitigation program account to administer the landlord 13
mitigation program as established in RCW 43.31.605. The department of 14
commerce may use up to 10 percent of these funds for program 15
administration and the development and maintenance of a database 16
necessary to administer the program. 17
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