Committee hears support for removing deed assignment exemption from housing and homelessness recording fees

The Appropriations Committee heard testimony and a staff briefing on House Bill 18 58, which would remove the current exemption for assignments or substitutions of previously recorded deeds of trust from the housing and homelessness document recording surcharge ($183) and the $100 covenant homeownership program assessment.

Staff explained the surcharge funds a mix of county and state programs: 31% of surcharge revenue remains in the county where the document is recorded and 69% is distributed to state accounts that support homeless housing and affordable housing programs administered by the Department of Commerce and the Washington State Housing Finance Commission’s covenant homeownership program.

Using data provided by the Washington State Association of County Auditors, staff said roughly 137,000 documents recorded in 2024 would have qualified for the exemption. Using that annual figure, staff estimated annual revenue increases across recipients totaling approximately $38.8 million per year: counties would receive an additional $7.7 million, the Homelessness Fund would receive about $13.5 million, the Affordable Housing for All account about $3.2 million, the Landlord Mitigation Program account about $452,000, and the Covenant Homeownership Program account about $13.7 million. Staff noted a fiscal note had been requested but was not yet available in committee materials.

Supporters, including county associations and housing providers such as Plymouth Housing and the Washington Low Income Housing Alliance, urged the committee to adopt the bill, saying documentary recording fees are an essential, dedicated revenue source that has declined with lower transaction volume and that the change would help restore funding for homeless housing and local services. Witnesses argued the revenue difference is meaningful for operations and for meeting local needs.

During questioning, committee members asked whether the change would affect routine ownership transfers including estate‑related assignments or mortgage sales between lenders; staff said yes — assignments or substitutions of recorded deeds of trust, including actions by mortgage holders, would no longer be exempt under the bill. Testimony emphasized the bill targets a gap in funding and would shift costs to entities that were previously exempted.

No committee vote was taken.