Land banking authorities

AN ACT Relating to establishing land banking authorities; 1
amending RCW 39.33.015, 36.35.150, and 35.21.755; adding a new 2
section to chapter 84.36 RCW; and adding a new chapter to Title 36 3
RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds the following:6
(a) Providing local governments with more options to increase 7
residential capacity, especially in urban areas, consistent with RCW 8
43.21C.420, is essential to building affordable housing;9
(b) A history of racial segregation and displacement has led to 10
disparities in access to education, living wage employment, 11
affordable housing, and transportation, particularly for black and 12
indigenous communities. This history has also allowed certain 13
populations to obtain and build wealth and to access critical 14
resources at the expense of others. Over time these factors have put 15
pressure on, marginalized, and displaced many from these same 16
communities; and 17
(c) Housing can drive economic growth within neighborhoods if 18
developed with a focus on services, jobs, public improvements, open 19
spaces, equity, and other elements that make housing vital and 20
economically additive to nearby residents and the region.21
S-4007.1
SENATE BILL 6214
State of Washington 69th Legislature 2026 Regular Session
By Senators Riccelli, Frame, Hasegawa, Nobles, Saldaña, and Trudeau
Read first time 01/19/26. Referred to Committee on Housing.
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(2) The legislature intends to establish a land bank grant 1
program which, using a land acquisition and deployment strategy, 2
would produce more affordable low-income and moderate-income housing, 3
ensuring any loss of affordable housing in areas of public 4
infrastructure investment is exceeded by new affordable units, to 5
enable all members of the workforce to live in the community in which 6
they serve, including members of racial and ethnic groups 7
disproportionately experiencing adverse housing outcomes, to make 8
sure that the public improvement and housing investments in our state 9
help to foster racial equity and rectify discriminatory practices.10
NEW SECTION. Sec. 2. (1) The legislative authority of a county 11
may authorize an entity to serve as a land bank throughout the 12
county.13
(2) The entity authorized as a land bank must be a public 14
corporation established under RCW 35.21.730, a public housing 15
authority established under chapter 35.82 RCW, or an entity exempt 16
from taxation under 26 U.S.C. Sec. 501 (c)(3) of the internal revenue 17
code of 1986, as amended. 18
(3) The legislative authorities of two or more contiguous 19
counties may authorize a regional land bank to be administered in 20
accordance with an interlocal agreement. 21
NEW SECTION. Sec. 3. (1) A county authorizing a land bank must 22
establish a land bank advisory board to provide oversight and 23
technical assistance to the land bank. The county executive must 24
appoint nine members to the land bank advisory board as follows:25
(a) One member with public or private real estate finance 26
experience; 27
(b) One member with affordable housing development experience;28
(c) One member with market rate housing development experience;29
(d) One member with experience in neighborhood and community 30
planning; 31
(e) One member with design and architecture experience;32
(f) One member with economic development experience;33
(g) One member representing advocates for affordable housing for 34
marginalized communities; 35
(h) One member representing nonprofit housing developers; and36
(i) One member representing renters in the region that is 37
currently a renter. 38
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(2) The county executive must strive to make appointments that 1
reflect the racial and ethnic makeup of the region the land banking 2
authority will cover. 3
NEW SECTION. Sec. 4. (1) A land bank may acquire, hold, 4
improve, fund, lease, sell, and engage in predevelopment contracting 5
for land within the urban growth areas of the authorizing county.6
(2) Land acquisitions and dispositions must be consistent with 7
any existing local, regional, or state housing plans and chapter 8
43.185B RCW, including the antidisplacement policies in the 9
comprehensive plans of the authorizing county and any cities or towns 10
within that county. 11
(3) A land bank may work with other public entities, nonprofit 12
developers, and private landowners to acquire, assemble, lease, or 13
land bank parcels. 14
(4) The authorizing county and any city or town within that 15
county must give a land bank within its jurisdiction priority for 16
acquiring any existing surplus land and any properties foreclosed due 17
to nuisance or unpaid taxes. Any property conveyed to a land bank 18
must have a clear title and address payment or forgiveness of any 19
back taxes. 20
(5) A land bank may lease or sell land to a housing developer at 21
less than market rate in exchange for compliance with affordability 22
requirements. 23
(6) A land bank may negotiate sales with developers and is not 24
required to sell or lease land to the highest bidder. A land bank may 25
prioritize community needs, such as affordable housing, workforce 26
housing, a grocery store, or expanded recreational space.27
(7) A land bank may sell land to any entity for any purpose if it 28
can clearly demonstrate that it is not financially feasible to lease 29
the parcel, and the net proceeds are directed to subsidies for 30
affordable housing and permanently affordable homeownership units or 31
public improvement costs necessary for the development of affordable 32
housing or permanently affordable homeownership. 33
(8) A land bank may lease properties for temporary uses, if more 34
permanent options are not reasonably available. 35
(9) A land bank must plan for and facilitate the following mix of 36
housing: 37
(a) At least 33 percent affordable to extremely low-income, very 38
low-income, and low-income households; 39
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(b) No more than 33 percent at market rate; and1
(c) Housing affordable to moderate-income households.2
(10) Land or property leased or sold by a land bank must include 3
a covenant or deed restriction that the housing units developed or 4
operated must maintain any affordability requirements for at least 99 5
years. 6
NEW SECTION. Sec. 5. Each land bank must develop a land bank 7
planning strategy that includes:8
(1) Land acquisition and disposition policies; 9
(2) An equitable framework and equity goals; 10
(3) Identification of a community vision that includes people who 11
are most impacted by housing and transportation disparities;12
(4) An assessment of the current regulatory environment and 13
identification of possible barriers to affordable housing 14
development; 15
(5) An assessment of displacement risk for current low-income 16
residents and underrepresented racial and ethnic minorities;17
(6) A displacement mitigation plan that aligns with the city or 18
county's antidisplacement policies; 19
(7) Prioritization of homeownership opportunities for 20
underrepresented racial and ethnic minorities, including first-time 21
homeowners qualifying for the covenant homeownership program under 22
chapter 43.181 RCW; 23
(8) An assessment of alternate pathways to homeownership, 24
including permanently affordable homeownership, community land 25
trusts, and limited or shared equity cooperatives;26
(9) Consideration to the preservation of historical and cultural 27
communities and investments in low-income, very low-income, extremely 28
low-income, and moderate-income housing; and 29
(10) Consideration of land that may be used for affordable 30
housing. 31
NEW SECTION. Sec. 6. (1) Subject to appropriation, the housing 32
finance commission shall develop and administer a competitive grant 33
program for land banks. Grants may be used for:34
(a) Land bank planning strategies; 35
(b) Public improvements; and 36
(c) Land acquisition. 37
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(2) Up to one percent of the grant funds may be used for the 1
actual costs incurred by a land bank advisory board in the 2
performance of its oversight and technical assistance duties.3
(3) To be eligible for a grant under this section, each county 4
creating the land bank must: 5
(a) Levy a local tax dedicated to the construction, acquisition, 6
or rehabilitation of housing affordable to households at or below 80 7
percent of area median income; 8
(b) Have removed barriers to the siting of permanent supportive 9
housing; and 10
(c) Have expedited permit issuance timelines for housing 11
affordable to low-income, very low-income, and extremely low-income 12
households. 13
NEW SECTION. Sec. 7. (1)(a) The land bank must perform an 14
annual review of all undeveloped properties held or transferred to 15
determine progress towards the mix of affordable housing required 16
under section 4 of this act.17
(b) The land bank must submit the results of its review to its 18
land bank advisory board. 19
(2)(a) The county authorizing a land bank must conduct an audit 20
of all housing developed on land sold or leased by the land bank to 21
ensure affordability and other conditions continue to be met. Audits 22
must be performed on each property at least every three years.23
(b) If an audit finds that an owner or manager of housing units 24
is not in compliance with a minor or inadvertent variation of the 25
affordability requirements, the county must direct the land bank to 26
establish a plan to bring the owner or manager into compliance.27
(c) If an audit finds that an owner or manager of housing units 28
is not in compliance with a significant variance or variances from 29
the affordability or other requirements, the county must provide 30
notification of the noncompliance to any local, state, or federal 31
agency awarding funds for the housing development.32
Sec. 8. RCW 39.33.015 and 2023 c 301 s 1 are each amended to 33
read as follows: 34
(1) Any state agency, municipality, or political subdivision, 35
with authority to dispose of surplus public property, may transfer, 36
lease, or otherwise dispose of such property for a public benefit 37
purpose, consistent with and subject to this section. Any such 38
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transfer, lease, or other disposal may be made to a public, private, 1
or nongovernmental body on any mutually agreeable terms and 2
conditions, including a no cost transfer, subject to and consistent 3
with this section. Consideration must include appraisal costs, debt 4
service, all closing costs, and any other liabilities to the agency, 5
municipality, or political subdivision. However, the property may not 6
be so transferred, leased, or disposed of if such transfer, lease, or 7
disposal would violate any bond covenant or encumber or impair any 8
contract. 9
(2) A deed, lease, or other instrument transferring or conveying 10
property pursuant to subsection (1) of this section must include:11
(a) A covenant or other requirement that the property shall be 12
used for the designated public benefit purpose; and13
(b) Remedies that apply if the recipient of the property fails to 14
use it for the designated public purpose or ceases to use it for such 15
purpose. 16
(3) To implement the authority granted by this section, the 17
governing body or legislative authority of a municipality or 18
political subdivision must enact rules to regulate the disposition of 19
property for public benefit purposes. Any transfer, lease, or other 20
disposition of property authorized under this section must be 21
consistent with existing locally adopted comprehensive plans as 22
described in RCW 36.70A.070. The state, a municipality, or a 23
political subdivision must prioritize the transfer of surplus land to 24
any land bank authorized in the county in which the surplus land is 25
located.26
(4) This section is deemed to provide a discretionary alternative 27
method for the doing of the things authorized herein, and shall not 28
be construed as imposing any additional condition upon the exercise 29
of any other powers vested in any state agency, municipality, or 30
political subdivision. 31
(5) No transfer, lease, or other disposition of property for 32
public benefit purposes made pursuant to any other provision of law 33
prior to June 7, 2018, may be construed to be invalid solely because 34
the parties thereto did not comply with the procedures of this 35
section. 36
(6) The transfer at no cost, lease, or other disposal of surplus 37
real property for public benefit purposes is deemed a lawful purpose 38
of any state agency, municipality, or political subdivision, for 39
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which accounts are kept on an enterprise fund or equivalent basis, 1
regardless of the primary purpose or function of such agency.2
(7) This section does not apply to the sale or transfer of any 3
state forestlands, any state lands or property granted to the state 4
by the federal government for the purposes of common schools or 5
education, or subject to a legal restriction that would be violated 6
by compliance with this section. 7
(8) For purposes of this section: 8
(a) "Affordable housing" means: 9
(i) For rental housing, 30 percent of the household's monthly 10
income for rent and utilities, other than telephone; or11
(ii) For permanently affordable homeownership, 38 percent of the 12
household's monthly income for mortgage principal, interest, property 13
taxes, homeowner's insurance, homeowner's association fees, and land 14
lease fees, as applicable. In addition, total household debt is no 15
more than 45 percent of the monthly household income;16
(b) "Public benefit" means affordable housing, which can be 17
rental housing or permanently affordable homeownership for low-income 18
and very low-income households as defined in RCW 43.63A.510, and 19
related facilities that support the goals of affordable housing 20
development in providing economic and social stability for low-income 21
persons; and 22
(c) "Surplus public property" means excess real property that is 23
not required for the needs of or the discharge of the 24
responsibilities of the state agency, municipality, or political 25
subdivision. 26
Sec. 9. RCW 36.35.150 and 2016 c 63 s 1 are each amended to read 27
as follows: 28
(1) The county legislative authority may dispose of tax 29
foreclosed property by private negotiation, without a call for bids, 30
for not less than the principal amount of the unpaid taxes in any of 31
the following cases: (a) When the sale is to any governmental agency 32
and for public purposes; (b) when the county legislative authority 33
determines that it is not practical to build on the property due to 34
the physical characteristics of the property or legal restrictions on 35
construction activities on the property; (c) when the property has an 36
assessed value of less than ((five hundred dollars )) $500 and the 37
property is sold to an adjoining landowner; (d) when the sale is to a 38
land bank authorized under section 2 of this act; or (((d))) (e) when 39
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no acceptable bids were received at the attempted public auction of 1
the property, if the sale is made within ((twelve)) 12 months from 2
the date of the attempted public auction. 3
(2) Except when a county legislative authority purchases the tax 4
foreclosed property for public purposes, the county legislative 5
authority must give notice to any city in which any tax foreclosed 6
property is located within at least ((sixty)) 60 days of acquiring 7
such property, and the county may not dispose of the property at 8
public auction or by private negotiation before giving such notice. 9
The notice must offer the city the opportunity to purchase the 10
property for the original minimum bid under RCW 84.64.080, together 11
with any direct costs incurred by the county in the sale. If the city 12
chooses to purchase the property, the following conditions apply:13
(a) The city must accept the offer within ((thirty)) 30 days of 14
receiving notice, unless the county agrees to extend the offer;15
(b) The city must provide that the property is suitable and will 16
be used for an affordable housing development as defined in RCW 17
36.130.010; and 18
(c) The city must agree to transfer the property to a local 19
housing authority, land bank, or ((other)) nonprofit entity eligible 20
to receive assistance from the affordable housing program under 21
chapter 43.185A RCW. The city must be reimbursed by the housing 22
authority, land bank, or ((other)) nonprofit entity for the amount 23
the city paid to purchase the property together with any direct costs 24
incurred by the city in the transfer to the housing authority , land 25
bank, or ((other)) nonprofit entity. 26
Sec. 10. RCW 35.21.755 and 2020 c 20 s 1011 are each amended to 27
read as follows: 28
(1) A public corporation, commission, or authority created 29
pursuant to RCW 35.21.730, 35.21.660, or 81.112.320 shall receive the 30
same immunity or exemption from taxation as that of the city, town, 31
or county creating the same: PROVIDED, That, except for (a) any 32
property within a special review district established by ordinance 33
prior to January 1, 1976, or listed on or which is within a district 34
listed on any federal or state register of historical sites , or (b) 35
any property owned, operated, or controlled by a public corporation 36
that is used primarily for low-income housing, or that is used as a 37
convention center, performing arts center, public assembly hall, 38
public meeting place, public esplanade, street, public way, public 39
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open space, park, public utility corridor, or view corridor for the 1
general public , or (c) any blighted property owned, operated, or 2
controlled by a public corporation that was acquired for the purpose 3
of remediation and redevelopment of the property in accordance with 4
an agreement or plan approved by the city, town, or county in which 5
the property is located, or (d) any property owned, operated, or 6
controlled by a public corporation created under RCW 81.112.320, or 7
(e) any property owned, operated, or controlled by a public 8
corporation authorized as a land bank by a county under section 2 of 9
this act, any such public corporation, commission, or authority shall 10
pay to the county treasurer an annual excise tax equal to the amounts 11
which would be paid upon real property and personal property devoted 12
to the purposes of such public corporation, commission, or authority 13
were it in private ownership, and such real property and personal 14
property is acquired and/or operated under RCW 35.21.730 through 15
35.21.755, and the proceeds of such excise tax shall be allocated by 16
the county treasurer to the various taxing authorities in which such 17
property is situated, in the same manner as though the property were 18
in private ownership: PROVIDED FURTHER, That the provisions of 19
chapter 82.29A RCW shall not apply to property within a special 20
review district established by ordinance prior to January 1, 1976, or 21
listed on or which is within a district listed on any federal or 22
state register of historical sites and which is controlled by a 23
public corporation, commission, or authority created pursuant to RCW 24
35.21.730 or 35.21.660, which was in existence prior to January 1, 25
1987: AND PROVIDED FURTHER, That property within a special review 26
district established by ordinance prior to January 1, 1976, or 27
property which is listed on any federal or state register of 28
historical sites and controlled by a public corporation, commission, 29
or authority created pursuant to RCW 35.21.730 or 35.21.660, which 30
was in existence prior to January 1, 1976, shall receive the same 31
immunity or exemption from taxation as if such property had been 32
within a district listed on any such federal or state register of 33
historical sites as of January 1, 1976, and controlled by a public 34
corporation, commission, or authority created pursuant to RCW 35
35.21.730 or 35.21.660 which was in existence prior to January 1, 36
1976. 37
(2) As used in this section: 38
(a) "Low-income" means a total annual income, adjusted for family 39
size, not exceeding ((fifty)) 50 percent of the area median income.40
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(b) "Area median income" means: 1
(i) For an area within a standard metropolitan statistical area, 2
the area median income reported by the United States department of 3
housing and urban development for that standard metropolitan 4
statistical area; or 5
(ii) For an area not within a standard metropolitan statistical 6
area, the county median income reported by the department of 7
commerce. 8
(c) "Blighted property" means property that is contaminated with 9
hazardous substances as defined under RCW 70A.305.020.10
NEW SECTION. Sec. 11. A new section is added to chapter 84.36 11
RCW to read as follows: 12
(1) All real and personal property owned or leased by a nonprofit 13
land bank authorized by a county under section 2 of this act is 14
exempt from property taxation. 15
(2) To qualify for this exemption, the nonprofit organization, 16
corporation, or association must be qualified for exemption under 17
section 501 (c)(3) of the internal revenue code of 1986 (26 U.S.C. 18
Sec. 501(c)(3)). It must also have been organized to provide low-cost 19
land for affordable housing development. 20
NEW SECTION. Sec. 12. The definitions in this section apply 21
throughout this chapter unless the context clearly requires 22
otherwise.23
(1) "Affordable housing" means residential housing that is rented 24
by a person or household whose monthly housing costs, including 25
utilities other than telephone, do not exceed 30 percent of the 26
household's monthly income. 27
(2) "City" means a city or town as defined in Title 35 or 35A 28
RCW. 29
(3) "Community land trust" means a community housing development 30
organization: 31
(a) That is not sponsored by a for-profit organization;32
(b) That is established to: 33
(i) Acquire parcels of land, held in perpetuity, primarily for 34
conveyance under long-term ground leases; 35
(ii) Transfer ownership of any structural improvements located on 36
such leased parcels to the lessee; and 37
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(iii) Retain a preemptive option to purchase any such structural 1
improvement at a price determined by formula that is designed to 2
ensure that the improvement remains affordable to low-income and 3
moderate-income families in perpetuity; 4
(c) Whose corporate membership is open to any adult resident of a 5
particular geographic area specified in the bylaws of the 6
organization; and 7
(d) Whose board of directors: 8
(i) Includes a majority of members who are elected by the 9
corporate membership; and 10
(ii) Is composed of equal numbers of: 11
(A) Lessees pursuant to (b) of this subsection;12
(B) Corporate members who are not lessees; and13
(C) Any other category of persons described in the bylaws of the 14
organization. 15
(4) "County" means a county as defined in Title 36 RCW.16
(5) "Extremely low-income household" means a single person, 17
family, or unrelated persons living together whose income is at or 18
below 30 percent of the median income, as determined by the United 19
States department of housing and urban development, with adjustments 20
for household size, for the county where the land bank is located.21
(6) "Land bank" means a land bank authorized by a county to serve 22
the urban growth areas of the county. 23
(7) "Low-income household" means a single person, family, or 24
unrelated persons living together whose income is above 50 percent 25
and at or below 80 percent of the median income, as determined by the 26
United States department of housing and urban development, with 27
adjustments for household size, for the county where the land bank is 28
located. 29
(8) "Moderate-income household" means a single person, family, or 30
unrelated persons living together whose income is above 80 percent 31
and at or below 120 percent of the median income, as determined by 32
the United States department of housing and urban development, with 33
adjustments for household size, for the county where the land bank is 34
located. 35
(9) "Permanently affordable homeownership" means units that, in 36
addition to meeting the definition of "affordable housing" in RCW 37
43.185A.010, are: 38
(a) Sponsored by a nonprofit organization or governmental entity;39
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(b) Subject to a ground lease or deed restriction, the forms of 1
which may include a ground lease, deed restriction, community land 2
trust lease, or affordability covenant that includes:3
(i) A resale restriction designed to provide affordability for 4
future low and/or moderate-income homebuyers; 5
(ii) A right of first refusal for the sponsor organization to 6
purchase the home at resale, except in cases where the sponsoring 7
organization is a limited equity cooperative as defined by RCW 8
64.90.010 and is not partnered with a community land trust; and9
(iii) A requirement that the sponsor must approve any refinancing 10
secured by the home, including home equity lines of credit, except in 11
cases where the sponsoring organization is a limited equity 12
cooperative as defined by RCW 64.90.010 and is not partnered with a 13
community land trust; and 14
(c) Sponsored by a nonprofit organization or governmental entity 15
and the sponsor organization: 16
(i) Executes a new ground lease or deed restriction, the forms of 17
which may include a ground lease, deed restriction, community land 18
trust lease, or affordability covenant with a duration of at least 99 19
years at the initial sale and at each successive sale of the home; 20
and 21
(ii) Supports homeowners and enforces the ground lease or deed 22
restriction. 23
(10) "Public improvements" has the same meaning as "public 24
improvement costs" as defined in RCW 39.114.010. 25
(11) "Very low-income household" means a single person, family, 26
or unrelated persons living together whose income is above 30 percent 27
and at or below 50 percent of the median income, as determined by the 28
United States department of housing and urban development, with 29
adjustments for household size, for the county where the land bank is 30
located. 31
NEW SECTION. Sec. 13. Sections 1 through 7 and 12 of this act 32
constitute a new chapter in Title 36 RCW.33
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