This month: Permit-ready plans, CHIP grants, accelerating housing production, MFTE adoption





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JULY 15, 2026






Planners' Monthly Newsletter
Washington landscape
July 2026: Permit-ready plans, CHIP grants, accelerating housing production, MFTE adoption

 

Permit-ready plan tools can help shape local programs

We are excited to announce the launch of our new Permit-Ready Plan resources, designed to help local governments streamline housing development through pre-approved home designs.

The new tools include the Permit-Ready Plan Explorer [ [link removed] ], an interactive dashboard featuring more than 150 pre-approved plans and insights from 18 jurisdictions across Washington, as well as new draft guidance to assist jurisdictions considering a new or expanded permit-ready plan program. We hope you will explore these new resources and share your feedback <[email protected]?subject=Permit-Ready%20Plan%20Guidance%20Comment> on the draft guidance by July 30.  

*Read more: *New Permit-Ready Plan resources and dashboard now available [ [link removed] ]

 

Project kickoff: Washington Accelerator for Residential Production (WARP)

Commerce has launched the Washington Accelerator for Residential Production (WARP), a new project to analyze cost drivers, accelerate timelines and eliminate barriers to boost housing production statewide.

Geared toward actionable, realistic solutions, WARP will collaborate with housing leaders to design an approach and consider recommendations for legislative and agency actions to improve the supply of both rental and homeownership units. A preliminary report on this approach is due to the Legislature on Oct. 1, 2026 and a final report complete with recommendations is due June 30, 2027.

Learn more, sign up for updates or register for meetings on the Commerce project webpage.

*Read:* Washington Accelerator for Residential Production (WARP) webpage [ [link removed] ]

 

Important steps to finalize the periodic update

We want to offer some important reminders about the steps necessary to finalize the periodic update process, including specific language in your recitals, Commerce notification and timely publication. We’ve compiled a quick breakdown of the four necessary steps to formally complete your update. Please reach out to your regional planner with any questions.

*Read: *Critical steps for local governments to finalize the Periodic Update process [ [link removed] ]

 

MFTE more widespread than ever

The Multifamily Housing Property Tax Exemption (MFTE) program proved to be an indispensable tool for tackling local housing needs in 2025, according to the program’s annual report published last month.

Facing a challenging economic landscape of higher interest rates and construction costs, jurisdictions utilized the program to incentivize 8,102 new market-rate and affordable units across 71 projects—marking the second highest unit total in the program’s history.

Crucially, 2025 signaled a major geographic shift. While roughly half of all historical MFTE units have been built in Seattle, most new units in 2025 were produced outside Seattle and across a record-breaking 24 jurisdictions.

Utilized in roughly 30% of all new multifamily housing projects statewide over the last two years, the MFTE program continues to support vital development, leveraging the private market to drive an estimated $2.25 billion in total development value to expanding communities.

*Read more: *2025 MFTE Annual Report [ [link removed] ]

 

Public hearing for DOR-led MFTE rulemaking

The Department of Revenue has updated the proposed rule (WAC 458-16-350 [ [link removed] ]) regarding monitoring affordable units receiving a tax exemption under the MFTE program (RCW 84.14.100 [ [link removed] ]). This draft rule provides relevant information to property owners and facilitates continued compliance.

You can review the proposed rulemaking [ [link removed] ] (PDF) and register for the public hearing scheduled for 10 a.m. July 23 [ [link removed] ] on Zoom. If you have questions or feedback on the proposed rule, please contact Leslie Mullin at [email protected] <[email protected]?subject=WAC%20458-16-350%20%20-%20%20(NEW)%20Multifamily%20property%20tax%20exemption-Audit%20or%20review%20program>.

 

CHIP: Applications open July 20

Commerce will begin accepting applications for the next round of Connecting Housing to Infrastructure Program (CHIP) [ [link removed] ] grants on July 20. Up to $31 million will be available.

CHIP is a competitive grant program that helps encourage the creation of affordable housing by reducing or covering the cost of infrastructure associated with development.

*July 16 application workshop*

An application workshop is scheduled for July 16. The workshop will cover information and instructions applicants will need to successfully apply for CHIP. Jurisdictions interested in applying for CHIP are encouraged to attend, though attendance is not required to apply.

*Register:* CHIP application workshop at 2 p.m. July 16 [ [link removed] ]

 

Report on impact fee deferrals by Sept. 25

Commerce is required to collect data on impact fee deferrals for single-family detached and attached home construction. We are asking all jurisdictions that collect impact fees to complete this brief survey [ [link removed] ] to report on activity in the previous year.

Please complete the survey by Sept. 25. If you have any questions, contact Katherine Mitchell at [email protected].

 

Updated ADU guidance now available

Commerce has updated its accessory dwelling unit guidance to include allowance of rural detached ADUs, consistent with provisions of HB 1345 (Chapter 231, Laws of 2026) [ [link removed] ]. The update addresses detached ADUs in rural areas and offers guidance on the required standards, code compliance, reporting and inclusion of ADU data in future comprehensive plan updates.

*Read: *Guidance for accessory dwelling units in Washington state [ [link removed] ]






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STAFF UPDATE [ [link removed] ]

Kylie Avery to lead Tribal Climate Resilience program

Kylie Avery

We are pleased to welcome Kylie Avery (she/her) as the new Tribal Climate Resilience Program Manager at Commerce.

Kylie will oversee the statewide allocation and disbursement of Climate Commitment Act funds to tribal governments and serve as the agency’s expert on tribal climate resilience topics.

Kylie comes to Commerce after having previously worked as the tribal climate resilience liaison and special project manager at the Affiliated Tribes of Northwest Indians, an intertribal nonprofit serving member tribes across seven states in the region.

Kylie holds a bachelor’s degree in animal biology with a minor in Native American studies from the University of California, Davis. She earned a certificate in tribal relations from Portland State University, and a certificate in climate action planning from Gonzaga University.

Kylie is a citizen of the Shawnee Tribe and lives in Kent. She enjoys cooking, crafting, and playing board games with friends and family.



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UPCOMING EVENTS

Planners' Forums

Commerce presents the Regional Planners’ Forums [ [link removed] ] in partnership with the Planning Association of Washington and Washington Chapter of the American Planning Association. These forums offer a free opportunity for planners, officials and community members to talk informally about local issues, share ideas and receive updates from state and federal agencies.

*Southwest Planners’ Forum*


* 9 a.m. Thursday, July 23
* Topic: Port planning
* Register for the Southwest Planners’ Forum [ [link removed] ]

*Eastern Planners’ Forum*


* 9:30 a.m. Wednesday, July 29
* Topics: Natural resources lands, vernal pools
* Register for the Eastern Planners’ Forum [ [link removed] ]

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FROM OUR PARTNERS

OFM: Washington still growing, but at slower pace

OFM logo

Washington state’s population continues to climb, but at a more measured pace than the boom of the previous decade, according to the latest estimates [ [link removed] ] from the Office of Financial Management.

The state’s total population grew by an estimated 61,200 to 8,176,300 as of April 1, 2026. Net migration was once again the largest driver of population growth, accounting for 72% of the increase.

Washington still ranks among the fastest-growing states in the nation, but the recent cooldown reflects a broader national trend toward slower population growth.

*Read more: *April 1 population estimates press release [ [link removed] ]

 



MRSC: Planning legislation simplifies affordable housing development

MRSC Logo

The Municipal Research and Services Center recently explored how local governments can use Tax Increment Financing (TIF) and Community Revitalization Financing (CRF) to fund downtown public improvements, from street maintenance to affordable housing.

Read on to learn about the legal history, how these tools work, and new changes from HB 2451 requiring earlier notice and negotiations with impacted taxing districts.

*Read:* MRSC - Tax Increment Tools for Downtown Revitalization and Economic Development [ [link removed] ]

 



WGS: New Research about the Doty Fault in Southwest Washington

DNR logo

The Washington Geological Survey recently published a new report about the Doty fault zone in southwest Washington. Their research refines the framework of crustal movements in the area.

*Read more:* New Publication: Geologic and Geophysical Assessment of Tectonic Uplift and Fault Activity in the Doty and Willapa Hills, Southwest Washington [ [link removed] ]



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Questions? 

For questions or feedback about this newsletter, please contact Will Isern at [email protected].


















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