NAIOPWA Legislative Session Lookback

Krystelle Purkey and Ehren Flygare, State Lobbyists

The 2025 Washington State legislative session was one of the most tumultuous and emotionally charged sessions in recent memory, marked by significant political tension, major fiscal challenges, and the deaths of two beloved legislators. From the opening days, the atmosphere was fraught with division. Deep ideological splits over how to address the state’s financial crisis created a highly charged environment where lawmakers frequently clashed not only along party lines but also within their own caucuses.

The most pressing issue was the staggering $16 billion budget deficit. The reality of the shortfall quickly consumed legislative discussions, setting the tone for the months ahead. Proposed cuts sparked widespread protests and added to the strain inside the building. In response, a range of revenue ideas were volleyed around the Capitol, from new taxes on capital gains to expanded sales tax bases and proposals for bond measures.

NAIOPWA's government affairs leadership team successfully advocated for positive, pro-development legislation and mitigated risks of harmful bills like EHB 1217, the rent caps bill, which passed on the final day of session.

Other wins included stopping 2SHB 1303, the CURB Act, which would have significantly impacted our industrial-focused members.

For a complete list of all of the bills passed by the 2025 Legislature, please see them linked here. We have included a selection of those bills below which are most impactful to our membership.

Housing

EHB 1217 (Alvarado, D-34) - Limits rent increases to 7 percent plus the Consumer Price Index or 10 percent, whichever is less, during any 12-month period under the Residential Landlord-Tenant Act (RLTA) and 5 percent for units subject to the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA), with certain exemptions. Requires a specific form for written notice of rent increases to tenants. Provides certain other protections for tenants, such as tenant lease termination provisions, a 90-day rent increase notice period under the RLTA, and limits on move-in fees, security deposits, and late fees under the MHLTA. Authorizes a tenant or the Attorney General to bring a court action to enforce compliance with the bill. 

3SHB 1491 (Reed, D-36) - Requires cities planning under the Growth Management Act to allow new residential and mixed-use development within a station area at certain transit-oriented development (TOD) densities. Establishes affordability requirements and authorizes a 20-year multifamily property tax exemption (MFTE) for residential and mixed use buildings constructed within a station area. Requires a city to reduce certain impact fees by 50 percent if the project is within a station area and claiming the new 20-year MFTE. Requires the Department of Commerce to administer a grant program to assist cities in providing the infrastructure, planning, and staffing necessary to implement the TOD requirements.