WA governor proposes ‘record’ affordable-housing investment, new department
AI-generated summary reviewed by our newsroom.
- Ferguson proposes $225M supplemental housing investment to build and preserve homes
- $81M would subsidize about 1,900 affordable rentals; $73M targets 660 owner units
- Order starts a state Dept. of Housing; bill seeks to allow mixed-use zoning
Gov. Bob Ferguson’s proposed supplemental budget includes hundreds of millions in investments into the development and preservation of affordable housing across Washington.
When campaigning across all the state’s counties during the governor’s race, Ferguson said one issue was consistently mentioned.
“More housing, more housing, more housing,” he said during a news conference on Dec. 18 before announcing his office’s proposed housing investments.
According to the Washington State Department of Commerce, the state needs to build more than 1 million homes statewide by 2044, with half of those being affordable to Washingtonians making 50% or below of the area median income and below.
Affordable housing has been a priority for both state and local governments, with the Governor’s Office reporting nearly half of all renters in the state face high cost burdens, paying more than 30% of their annual gross income on housing costs, with one quarter paying more than 50% of their annual gross income.
On Dec. 18, Ferguson announced a proposed supplemental budget that includes more than $225 million in housing investments, what he called a “record investment” for a supplemental budget.
If passed by the Legislature during the coming session, the supplemental budget would send $50 million to the Housing Trust Fund Preservation Program for the preservation and rehabilitation of affordable homes.
In the wake of the recent flooding that has damaged homes and displaced residents across the state, Ferguson said his office expanded the terms of the program to include repairs for flood-damaged homes to provide needed relief.
Another $5 million would be made available through grants for low-income homeowners to rehabilitate homes impacted by the flood.
Ferguson said the funding would help bridge the gap while the state tries to secure additional federal disaster relief.
An additional $20 million is proposed for the Housing Trust Fund, specifically to acquire and preserve motorhome and manufactured-home communities.
Ferguson said that investment is a 67% increase over what exists in the current budget and is projected to preserve 400 affordable households.
“This funding supports critical improvements, repairs and infrastructure upgrades , preserving these affordable homes for at least four decades,” he said.
The proposal includes $81 million to subsidize the development of approximately 1,900 new affordable rental units. This would be a 38% increase over the current biennial budget adopted earlier this year.
A proposed $73 million would be used to build more than 660 units for first-time home buyers — a 97% increase over the current biennial budget.
“This investment into the homeownership program plays a critical role in promoting homeownership, helping Washingtonians build long term equity and economic stability,” Ferguson said.
Another $6 million in the proposal would be dedicated to speeding up housing development for cities and counties by “modernizing” permitting systems.
Department of Housing
The governor also announced an executive order to begin the process of establishing a state Department of Housing under the executive branch.
“The housing crisis demands a cabinet-level agency primarily focused on meeting the diverse housing needs of all Washingtonians,” the order wrote in justification of the new department. “Washington needs a more centralized, data-driven approach to integrate housing programs, promote housing stability, encourage housing growth and innovation, minimize administrative bottlenecks, and improve accountability by establishing a cabinet-level housing agency.”
In partnership with Sen. Emily Alvarado (D-West Seattle), Ferguson is requesting a bill that would require cities and counties that use Growth Management Plans to permit residential and mixed-use development in areas zoned for commercial use.
“In our state, there is underused land within urban growth areas where housing is compatible, but right now it’s not allowed to be built in commercial zones and in mixed-use zones,” Alvarado said on Dec. 18.
Alvarado said there are tens of thousands of parcels where housing is not permitted but could be viable development sites.
“Think about it, vacant strip malls, or big box stores that are boarded up, or empty parking lots,” she said. “And now imagine the transformation of those places into homes.”
This story was originally published December 19, 2025 at 5:00 AM.
