2026 Planning Legislation Simplifies Affordable Housing Development, Land Banking, Permitting, and More

This blog includes brief summaries and analysis of eight bills related to land use planning and housing that were passed during the most recent Washington State legislative session and signed into law by the governor. Please consult with your agency’s attorney for applicability to your locality.

Most of these bills take effect on June 11, 2026, with exceptions noted.

HB 2266 – Encouraging “STEP” Housing

HB 2266 limits the ability of local governments to block the development of "STEP" housing—an acronym covering shelters, transitional housing, emergency housing, and permanent supportive housing. The law mandates that cities, towns, and counties allow these facilities in any zone where residential dwellings or hotels are permitted, effectively preventing local jurisdictions from using zoning to prohibit them.

The legislation also streamlines the approval process by requiring administrative-only reviews for these projects, thereby preventing public hearing processes that have historically been used to delay or deny STEP housing.

Local governments are prohibited from imposing occupancy limits, spacing requirements, or design standards on STEP housing that are more burdensome than those applied to other residential or lodging uses in the same zone.

While the bill prioritizes expansion of STEP housing, it also includes safeguards for local safety. Cities, towns, and counties can still require operators to provide 24/7 contact information, hold community meetings, and establish health and safety protocols. However, the core of the bill ensures that as long as a project meets basic safety and notification standards, an agency can’t prohibit them based on local zoning or neighborhood opposition.

Local governments subject to this bill are required to incorporate the new requirements into local development and zoning regulations (and other land use controls) by June 2028 or their next comprehensive plan update, whichever comes first.

SB 6026 – Allowing Residential Development in Commercial and Mixed-Use Zones

The goal of SB 6026 is to increase housing supply by limiting the ability of certain cities and counties to prohibit residential development in areas zoned for commercial or mixed use. Allowing housing in these zones provides more opportunities for development in areas with existing infrastructure, and helps communities meet their growth management and future housing goals.

The bill prohibits most cities with populations of 30,000 or more and non-rural counties planning under the Growth Management Act (GMA) from excluding residential uses in commercial or mixed‑use zones or from requiring mixed‑use or ground‑floor commercial development as a condition of building housing in these areas. It also restricts development standards and design requirements that effectively prevent residential or mixed‑use projects in those zones.

Exceptions include industrial zones, near oil refineries, in certain airport and military safety areas, outside urban growth areas, in certain shoreline areas, and where historic preservation restrictions apply. Local code updates that reflect these new requirements are due by December 2027. 

HB 1859 – Encouraging Affordable Housing Development on Religious Organization-Owned Land

HB 1859 aims to accelerate the creation of affordable housing by lowering financial and regulatory barriers for religious organizations that develop housing on their underutilized property.

Prior to this law, faith-based groups were required to make 100% percent of any units developed on their property affordable in order to receive density bonuses. Now, such projects qualify by dedicating at least 50% of developed units to low-income households or 20% to very low-income households. To ensure long-term community benefit, these units must remain affordable for at least 50 years, even if ownership changes.

HB 1974 – Establishing Land Banking Authorities

HB 1974 establishes a legal framework for cities and counties to create or authorize land banking authorities to acquire, hold, and manage vacant or abandoned land for affordable housing development. By allowing land banking authorities (which can be public corporations or nonprofit) to clear titles and purchase tax-foreclosed properties before these go to public auction, communities are able to secure land at lower costs and combat private speculation.

To provide a community benefit, at least 50% of the land must be dedicated to housing affordable to low- and moderate-income households, with affordability preserved through a 30-year covenant.

Land banks may manage and prepare land but typically must partner with developers or housing authorities for construction, bridging acquisition, and project completion.

SB 5156 – Concerning Elevator Standards in Smaller Apartment Buildings

SB 5156 is intended to lower apartment construction costs by relaxing elevator standards for smaller apartment buildings. It allows cities and counties to permit smaller passenger elevators in buildings up to six stories and 24 units, as long as they still meet minimum federal accessibility requirements. In doing so, it has the potential to encourage more middle housing and increase affordability.

The bill also directs the Washington State Building Code Council (SBCC) to review related safety requirements through a new technical advisory group that will include fire safety experts, disability advocates, labor representatives, developers, and elevator industry members. Although effective on June 11, 2026, the bill’s practical impacts will occur through the 2027 SBCC adoption cycle.

HB 2418 – Concerning Permit Review Processes

HB 2418 requires cities, towns, and counties planning under the GMA to evaluate residential permit applications using the zoning and land-use rules that were in effect when the application was submitted rather than allowing rules to change mid-process. It also clarifies that a determination of completeness is procedural only, so local governments cannot use it to delay or deny projects through de facto substantive review.

A major feature of the bill is the creation of stronger accountability and timeline requirements for permit reviews. Utility districts and other agencies must complete their reviews within the same deadlines that apply to local governments. If these entities miss those deadlines, they must refund 20% of the review fee charged to the applicant. The bill also allows applicants to voluntarily waive these deadlines if they choose.

By June 2027, local governments are required to establish integrated permit review processes, designate a single permit-responsible official with authority to issue final administrative decisions, and assign a single point of contact for each permit application.

HB 2294 – Banning Restrictive Covenants that Limit Access to Food and Medicine

HB 2294 targets the practice of grocery covenants, where retail chains use restrictive real estate agreements to prevent competitors from moving into locations they have vacated. By voiding these restrictions, the bill helps to ensure former grocery or pharmacy buildings will not be kept vacant or repurposed in such a way that limits access to essential goods.

According to the bill, it is a violation for any private agreement to prevent a property from being used in the future as a grocery store or pharmacy. While the law prevents long-term site banking by major corporations, it allows for limited exceptions, such as when a store relocates to a nearby site within the same neighborhood, or when a developer needs to manage the retail mix within a single shopping center. These exceptions typically expire if the site remains inactive for more than a year.

The primary intent of this legislation is to combat the creation of food and medicine deserts, particularly in urban and underserved areas. By removing these barriers, the bill empowers independent grocers and pharmacies to fill vacancies left by larger chains, ensuring that residents maintain walkable access to food and medications.

HB 2239 – Expanding Locations for Interment of Remains

HB 2239 updates state law to expand and clarify the ways human remains may be interred, placed, or memorialized. It authorizes additional forms and locations of disposition beyond traditional cemeteries and aligns statutes with evolving end‑of‑life practices, while continuing to require compliance with public health, safety, and environmental standards.

By establishing clear statewide authorization for certain interment options, the bill emphasizes individual and family choice in final disposition and reduces uncertainty about which practices are allowed.

Conclusion and Resources

This blog highlighted a few new bills Washington state planners should review. Also see my colleague’s recent blog on expanded housing options for counties, which covers HB 1345 and HB 2269. Be on the lookout for additional blogs in the coming weeks to learn more on new legislation that will impact local governments.

For more information on the topics discussed in this blog, see these MRSC webpages:

• Affordable Housing Techniques and Incentives
• Building Codes and Building Permits
• Growth Management Act Basics
• Homeless Shelter and Housing Options
• Planning and Development Permit Review