HB 1859 – Affordable Housing Development – Properties Owned by Religious Organizations – Passed; effective 6/11/26
Washington’s HB 1859 (effective 6/11/26) makes it easier for religious organizations such as churches, synagogues, mosques, or temples to qualify for a density bonus for affordable housing by removing the “100% low-income” requirement that previously stalled projects.
What’s changing?
Under the old rules, every unit of housing in developments owned by religious organizations had to be reserved for low-income residents to be eligible for the density bonus, making projects dependent on scarce public funding due to the difficulty in securing development financing and in making the rents pencil out once complete. HB 1859 introduces a flexible density bonus for organizations that meet one of two lower thresholds:
1) At least 50% of units reserved for low-income households (at or below 80% of the area median income).
2) At least 20% of units reserved for very low-income households (at or below 50% of the area median income).
By allowing the remaining units to be rented at higher rates, organizations can use market-rate income to help fund the affordable units and more easily secure financing.
Local Government Requirements
Cities and counties planning under the Washington Growth Management Act (GMA) must develop policies to implement these density bonuses once a religious organization requests an allowance for a housing development. However, under HB 1859, local governments still have the authority to require more affordable units than the state minimum to qualify for the bonus.
Bottom Line
HB 1859 turns underutilized land owned by religious organizations into a viable solution for housing shortages by making projects financially sustainable and less reliant on government funds. For more information on how these legislative changes may affect your religious organization, please contact Jordan Ramis at 503-598-5557.
