Committee hears testimony supporting removal of deed assignment exemption from recording fee to boost housing funds

The Senate Ways & Means Committee heard public testimony on March 24 for House Bill 18-58, a bill that would remove the current exemption for assignments or substitutions of previously recorded deeds of trust from the $183 housing and homelessness document recording surcharge and the $100 covenant homeownership program assessment.

Trevor Press, staff to the committee, briefed members that removing the exemption is estimated to generate about $31 million in state revenue each fiscal year, assuming 137,000 assignments/substitutions (figure based on 2024 activity), and would direct funds to homeless housing programs, permanent supportive housing operations and maintenance, the landlord mitigation fund, and the covenant homeownership program. Press said local governments would also see an estimated $7.5 million annually under the bill.

Curtis Steinhauer, representing the Washington State Association of Counties and the State Association of County Human Services, testified in strong support and said county budgets have seen substantial declines in local document-recording fee receipts in recent years. "The local document recording fee has been the primary revenue source that counties used to move people inside and address the homelessness crisis in our communities," Steinhauer said, adding that counties used general fund appropriations to make up for recent shortfalls.

Michelle Thomas of the Housing Alliance and Sarah Dickmeyer of Plymouth Housing also urged passage. "The document recording fee is a meaningful ongoing commitment to affordable housing in Washington," Dickmeyer said, noting the fee supports capital and operations funds for permanent supportive housing providers.

No formal action was taken; the hearing concluded after in-person and remote testimony supporting the bill.