Governor Ferguson announces historic investments in affordable housing, executive order to help establish housing agency
Proposals include Washington’s largest state-funded housing investment in a supplemental budget
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SEATTLE — Today Governor Bob Ferguson announced $244 million in housing investments and signed an executive order to form a task force dedicated to the creation of cabinet-level housing agency. The proposals include $237 million in investments in the capital budget – Washington’s largest state-funded housing investment in a supplemental budget.
In light of the recent historic flooding in Washington state, a portion of Ferguson’s housing proposals address the state’s flooding response and recovery. The proposed investments also build and protect thousands of affordable housing units, make it easier for first-time home buyers to enter the market, support clean energy upgrades and energy efficiency and accelerate the process to build housing.
Ferguson, while speaking at Beacon Pacific Village in Seattle, also signed an executive order aimed at addressing the state’s housing crisis and the diverse housing needs of Washingtonians.
“The need for more affordable housing is urgent,” Governor Ferguson said. “These historic investments will not only help respond to Washington’s housing affordability crisis — they help build a foundation of safety, security and opportunity for thousands of Washingtonians.”
Flood relief funding
Ferguson is proposing $55 million for rehabilitation and housing preservation:
- $50 million to the Housing Trust Fund Preservation Program to cover rehabilitation and repairs for affordable homes. Ferguson expanded the terms of this program to include repairs for flood-damaged homes.
- $5 million in grant funding to expand the Low-Income Home Rehabilitation Grant program, which serves rural homeowners impacted by recent flooding who have incomes at or below 200% of the federal poverty level. Homeowners who have families with children aged five or younger, senior citizens and veterans will be prioritized when awarding grants. Ferguson plans to make this early action legislation heading into the upcoming session.
Additional proposed investments
Ferguson’s proposals include $225 million in bonds to the state’s Housing Trust Fund, which provides money needed to preserve and build affordable homes for those most in need. The investment will build or preserve more than 4,000 units of housing. This investment includes the following funds:
- $50 million for the Housing Trust Fund Preservation Program to maintain and protect Washington state’s existing affordable housing portfolio – this is a portion of the $55 million investment in flood-relief funding
- $20 million to acquire and preserve mobile and manufactured home communities, preventing 426 households from displacement
- $81 million to develop approximately 1,933 new affordable rental units
- $73 million for the Homeownership Program to create 664 units for first-time homebuyers
Ferguson also proposes $11 million in investments of grant funding – this includes the $5 million in dedicated flood relief funding. The other $6 million is dedicated to speeding up housing development for cities and counties by modernizing permitting systems.
Ferguson’s proposals build on significant investments that were committed in the final budget earlier this year. Those included over $700 million in affordable housing development, preservation and infrastructure.
Legislation
In partnership with Sen. Emily Alvarado, Ferguson is requesting a bill to change commercial zoning to help local governments develop more housing. This bill would require cities and counties that use Growth Management Plans to permit residential and mixed-use development in areas zoned for commercial use. Ferguson’s budget proposal includes funding to support this legislation.
Executive order
Executive Order 25-12 creates the Washington State Task Force to prepare for establishing the Department of Housing. This task force will serve as the state’s problem-solving hub for expanding housing supply statewide and engaging a broad range of stakeholders to identify gaps and opportunities for all housing types. The task force will provide recommendations for the work, structure and costs of a housing agency by November 2026.
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