Washington Enacts Land Banking Law to Tackle Housing Crisis

On Friday, March 27, 2026, Governor Bob Ferguson signed HB 1974 into law, new legislation enabling coordinated land banking. This law will help local jurisdictions meet their housing targets and allow mission-driven builders to focus on what they do best—building homes to address Washington’s housing crisis.

How Does Land Banking Help Secure Affordable Housing?

Public land banking in the United States is the practice of repurposing underutilized or vacant land and returning it to productive use. HB 1974 points that tool at affordable housing. The law lets a city or county authorize a public corporation, housing authority, or nonprofit to operate as a land bank. Land leased or sold by a land bank must maintain affordability requirements and serve households earning at or below 80% of area median income for rental properties. 

A Coalition Effort

This legislation could not have been passed without the tireless work of a coalition convened by the Housing Development Consortium of Seattle-King County, which included Maul Foster & Alongi, Spokane Land Bank, Housing Authority of Snohomish County, and 1DROP. Of course, our biggest thanks go to Representative Natasha Hill, who sponsored HB 1974 and guided it through the legislature. On behalf of the partners, MFA extends a thank-you to Governor Ferguson for enacting this piece of legislation, making Washington the 20th state to enable land banking as a tool to address our housing challenges. Washington’s housing landscape has changed for the better, and we are proud to have been a part of it.