OLYMPIA, WA – Earlier this week, Gov. Bob Ferguson signed into a law a bill to utilize Accessory Dwelling Units as part of an effort to solve Washington state’s housing shortage.
An ADU is a smaller additional living space on the same lot as a single-family, duplex, triplex, townhome, or other housing unit. ADUs are also known as granny flats, in-law suites and backyard cottages.
Because they offer flexibility in living arrangements, ADUs have gained attention in recent years as a way to address the dearth of affordable housing options in the Evergreen State.
“Senate Bill 5529 expands tax exemptions to support affordable housing in Washington state,” Ferguson said Wednesday at a ceremony in Seattle where he signed a bevy of housing-related bills.
As passed by the Legislature, Engrossed Senate Bill 5529 exempts the value of ADUs from property taxes to more counties. The exemption was previously allowed in counties with more than 1.5 million people. Now, counties between 900,000 and 1.5 million also qualify. The exemption is limited to detached units and may be subject to a fee to cover administrative costs.
“The exemption is intended to encourage homeowners to rent accessory dwelling units to low-income renters to increase the availability of low-income housing,” Ferguson explained.
The governor thanked the bill’s prime sponsor, Sen. Chris Gildon, R-Puyallup, who was not in attendance due to the death of his wife less than two weeks ago.
“We appreciate everybody who made this legislation possible, particularly the prime sponsor, and that is state Sen. Chris Gildon. I will just take a moment … it’s been a tough legislative session in many ways on the personal side,” Ferguson acknowledged. “His wife, Autumn, passed away very unexpectedly on the last weekend of session. So, Sen. Gildon, we’re thinking about you and praying for you and your family during this really challenging time, to put it very mildly. I’m signing this bill in appreciation for his service, and I’m thinking about him … it’s my honor to sign this.”
Earlier in the legislative session, Ferguson signed another ADU bill into law.
Substitute House Bill 1353, sponsored by Rep. Alex Ramel, D-Bellingham, aims to accelerate the construction of accessory dwelling units across Washington.
According to a news release from House Democrats, the new law “creates a voluntary self-certification program that allows registered architects to certify that detached ADU plans comply with building codes in cities governed by the Growth Management Act (GMA). The goal is to reduce permitting delays, cut costs, and ease the burden on local planning departments.”
Housing experts say ADUs are an important part of the solution to Washington’s affordable housing crisis. State lawmakers are expected to continue introducing bills to streamline permitting and tax incentives for ADU construction in the future.
Projections indicate that Washington needs to add more than 1 million new housing units by 2044 to keep up with anticipated population growth.
