Olympia committee to review slate of state housing legislation

The City of Olympia Land Use & Environment Committee is going to review new state housing legislation, including bills aimed at boosting affordable housing, streamlining permit reviews and expanding opportunities for homeownership.

A briefing on the 2026 legislative updates will be presented by Housing Program Specialist Christa Lenssen at a meeting on Thursday, May 28.

A city staff report identified at least one new state law that directly affects Olympia’s rental housing code.

Among the bills expected to be discussed is Senate Bill 6200, which prohibits landlords from restricting installation of portable cooling devices, subject to certain exceptions.

The law also prevents landlords from charging fees for installation or use of portable cooling devices, and provides landlords with limited liability protections.

This legislation mirrors Olympia Municipal Code 5.82.140, which the city council adopted in 2024.

City staff recommended two options on whether to update existing OMC language to align with state law, or remove OMC 5.82.140 and defer directly to state law.

The legislative summary to be discussed in the committee includes new state budget provisions and housing funding tools that could affect how Olympia and other jurisdictions finance affordable housing and homelessness services.

Senate Bill 6003 increases funding for the state Housing Trust Fund by $123 million, an 82 percent rise over the current budget cycle.

Senate Bill 5998 sets aside $15 million in fiscal year 2027 to stabilize permanent supportive housing providers that lose or see reductions in federal Continuum of Care grants.

Under House Bill 2442, the state expands how cities and counties can use local housing revenue sources, including the Home Fund and Real Estate Excise Tax. The law allows flexibility for housing preservation, operations, rehabilitation and rental assistance.

Several bills passed in the 2026 legislative session aim to increase housing supply by changing zoning and permitting requirements for local governments, including:

• House Bill 2266 requires cities and counties to allow supportive, transitional, and emergency housing and shelters in most zones, except for industrial use zones.
• House Bill 2418 streamlines residential permitting by requiring jurisdictions to designate a single point of contact for project review, clarifying permit completeness standards, and imposing tighter review timelines on both local governments and state agencies.
• Senate Bill 6026 requires cities with more than 30,000 residents planning under the Growth Management Act to allow residential development in commercial and mixed-use zones, with limited exemptions.

Other measures aim to support housing production through new financing tools.

House Bill 1974 authorizes land banking authorities to acquire and prepare property for affordable housing development, while House Bill 1859 expands density bonus opportunities for mixed-income housing on faith-owned land by reducing affordability thresholds.

Additional legislation includes condominium insurance reforms intended to support small-scale condominium development, updated factory-built housing standards and elevator code changes designed to reduce construction costs.

Other enacted measures include new transparency rules for residential property listings and expanded landlord disclosure requirements for flood hazards and insurance.

According to the staff report, many of the bills in the 2026 legislative session were advanced by partners in the Black Home Initiative, which Olympia participates in, to address barriers to homeownership and reduce disparities in housing access.