Legislation sponsored by Rep. Jake Fey (D–Tacoma) to unlock state-owned surplus highway land for community use has officially been signed into law by Governor Bob Ferguson.
Substitute House Bill 1774 empowers the Washington State Department of Transportation (WSDOT) to lease unused highway property to local governments, non-profits, tribes, and public agencies for vital community purposes — including affordable housing, shelter services, parks, transit access, and salmon habitat restoration.
“Too much valuable land sits idle while our communities face urgent needs,” said Rep. Fey. “This law gives us the tools to use public property for public good — from creating housing to revitalizing neglected public spaces.”
Under SHB 1774, WSDOT may now consider the social, environmental, and economic benefits of proposed projects when determining lease terms, rather than requiring full market-rate rent. These leases will be restricted to community-benefit uses and subject to rigorous oversight and reporting requirements.
Tacoma’s Pugnetti Park is one such property that could benefit from the new law. Once a well-loved space, the park has fallen into disrepair under WSDOT’s stewardship. Local agencies like the Washington State Historical Society are interested in restoring and maintaining the site — a possibility now enabled by SHB 1774.
The bill also includes safeguards for housing-related uses, ensuring no leases jeopardize public infrastructure or safety, and requires legislative review of long-term nonprofit lease proposals.
“This is about equity, about access, and about reimagining what state property can do for the people who need it most,” Fey added. “I’m proud to see this become law.”
The bill takes effect 90 days after the close of the legislative session.