OLYMPIA – Earlier today, Governor Bob Ferguson signed House Bill 1494 into law, delivering a major win for communities across Washington in the fight for more stable and affordable housing. The legislation, introduced by Rep. Alex Ramel (D-Bellingham) strengthens and modernizes the state’s Multi-Family Tax Exemption (MFTE) program—an essential tool in Washington’s housing policy toolbox.
Since 2007, the MFTE program has helped create approximately 70,000 housing units, including more than 12,000 designated as affordable. HB 1494 builds on this progress by expanding the program to more cities and counties, aligning it with local transit and housing needs, and improving transparency and accountability.
“This bill is about delivering results for Washington families,” said Rep. Ramel. “It gives local governments the tools they need to meet growing demand for affordable housing, while ensuring that the benefits of development are shared more equitably across communities.”
The bill reflects recommendations from the Washington State Department of Commerce and responds to calls from city leaders, advocates, and residents for a stronger, more flexible program. HB 1494 extends eligibility to more jurisdictions, provides new pathways for long-term rental and homeownership exemptions, and introduces key safeguards to protect tenants and prevent displacement.
House Bill 1494 goes into effect later ninety days after the legislative session adjourns.