Planners' Monthly Newsletter
 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, 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featuring more than 150 pre-approved plans and insights from 18 jurisdictions across Washington, as well as new draft guidance to assist jurisdictions considering a new or expanded permit-ready plan program. We hope you will explore these new resources and share your feedback on the draft guidance by July 30.
Read more: New Permit-Ready Plan resources and dashboard now available
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
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
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
Public hearing for DOR-led MFTE rulemaking
The Department of Revenue has updated the proposed rule (WAC 458-16-350) regarding monitoring affordable units receiving a tax exemption under the MFTE program (RCW 84.14.100). This draft rule provides relevant information to property owners and facilitates continued compliance.
You can review the proposed rulemaking (PDF) and register for the public hearing scheduled for 10 a.m. July 23 on Zoom. If you have questions or feedback on the proposed rule, please contact Leslie Mullin at [email protected].
CHIP: Applications open July 20
Commerce will begin accepting applications for the next round of Connecting Housing to Infrastructure Program (CHIP) 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
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 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). 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
|
