Washington State is taking new steps to reduce the cost of building affordable housing. A law recently signed by Governor Bob Ferguson will allow cities to waive utility connection fees for nonprofit and low-income housing projects. The legislation, Senate Bill 5662, aims to remove financial obstacles that slow down construction and increase housing costs. Backed by housing advocates and nonprofit leaders, the measure is expected to make a significant impact on development across the state.

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Waiving Fees to Boost Housing Projects

Senate Bill 5662 gives cities and other local utility providers the authority to waive facility connection fees for specific types of affordable housing projects. These charges, which are typically required to hook properties into essential services like water and sewer, can add tens of thousands of dollars to the cost of each unit. By removing this requirement, the law aims to ease the financial strain on organizations trying to build affordable homes.

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Who Benefits from the Change

The law applies to properties developed or owned by a range of mission-driven entities. These include nonprofit developers, housing authorities, public development agencies, and emergency shelter or transitional housing providers. Local governments offering permanent supportive or affordable housing initiatives can also take advantage of the fee waivers. The goal is to support builders who are committed to addressing the housing crisis, not profit-driven developers.

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Senator Champions the Bill

Senator Marcus Riccelli of Spokane, who sponsored the bill, called the measure a “critical tool” to help communities meet the growing demand for affordable housing. In a statement, he expressed pride in delivering legislation that empowers organizations like Habitat for Humanity to expand their efforts. Riccelli emphasized that by giving local governments the choice to waive fees, the state is not mandating action, but rather enabling cost-saving options that can accelerate housing production.

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Removing the Burden

Michelle Girardot, CEO of Habitat for Humanity-Spokane, shared a clear example of how the law will help reduce housing costs. She said that utility connection fees added over $16,000 to the price of each home the organization built last year. Removing that burden means Habitat can stretch its funding further, helping more families access homeownership. Girardot praised the bill for removing a key barrier to affordability and allowing nonprofits to do more with limited resources.

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Significant Savings for Multifamily Projects

The impact of the new law is not limited to single-family homes. Ben Stuckart, executive director of the Spokane Low Income Housing Consortium, said that large-scale developments stand to benefit even more. According to Stuckart, Senate Bill 5662 could save as much as $100,000 on bigger multifamily housing projects. These savings could be the difference between a project moving forward or being delayed due to funding shortfalls.

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Local Control Preserved

Importantly, the law does not require cities or utility providers to waive the fees. Instead, it grants them the option to do so at their discretion. This approach gives flexibility to local jurisdictions based on their budgets, housing goals, and infrastructure needs. Local control ensures the legislation’s practicality and adaptability across diverse communities.

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A Step Toward Broader Affordability

Supporters of Senate Bill 5662 see it as one part of a larger strategy to increase affordable housing stock in Washington. By reducing unnecessary development costs, the law aligns with broader efforts to lower housing prices and address growing demand. Advocates say that cutting red tape and unnecessary expenses is essential to achieving long-term affordability across the state.

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Effective Date and Implementation

The new law is set to take effect on July 27. From that point, local governments and utility providers will be authorized to begin waiving connection fees for qualifying projects. In the meantime, housing organizations are preparing to adjust their budgets and project plans to take full advantage of the coming cost savings. Senate Bill 5662 has drawn support from a wide range of stakeholders, from nonprofit leaders to housing advocates and city officials. It reflects a growing recognition that affordable housing solutions require cooperation at every level of government. By easing financial burdens on developers working to solve the housing crisis, Washington is making it more feasible to bring affordable housing projects to life.

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