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Regional Housing Council begins framing 2026 legislative priorities amid funding uncertainty

October 23, 2025 | Thurston County, Washington


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Regional Housing Council begins framing 2026 legislative priorities amid funding uncertainty
Thurston County’s Regional Housing Council on Oct. 22 began deliberations about legislative priorities for the 2026 short session, focusing on protecting existing project funding and seeking targeted statutory clarifications.

Staff asked the council to consider four draft priorities: (1) preventing a clawback of funding already allocated to projects (including Department of Commerce Encampment Resolution Program funds and local projects such as Queen Street Village and Unity Commons); (2) seeking an amendment to the Revised Code of Washington provision governing local HOME funds to allow greater flexibility to spend on eligible services (current guidance cited a 30% cap on services and 60% on capital in staff discussion); (3) requesting clarification about whether the Residential Tenant-Landlord Act (RTLA) applies to operators and residents of homeless shelters or tiny-home villages — an issue that has produced litigation and provider uncertainty; and (4) supporting the Connecting Housing to Infrastructure Program (CHIP) to ensure grant funding for infrastructure that enables affordable-housing development.

Tom (staff) said the tech team drafted the four options to start the council’s discussion and proposed returning to the council in November and December with fleshed-out proposals and recommended actions. Council members emphasized that the short session will be tightly scheduled and urged staff to prioritize items that could be quick fixes and that would need bill sponsors in the Legislature.

On RTLA clarification, county and city staff noted active litigation and operational problems for some providers. County Manager Leonard and Olympia staff said providers and tiny-home-village operators have faced limits on their ability to remove or bar participants who repeatedly violate conduct rules because providers must pursue formal eviction processes; staff warned that uncertainty has led some providers to close programs rather than risk legal exposure.

Council members also discussed the practicalities of seeking changes to HOME-fund rules, with one member noting it may be worth researching when the 30% services cap was written into statute and whether any local discretion already exists. Several members urged engaging local legislative delegation and Commerce early so sponsors can be identified quickly.

Staff said the technical team will further develop these options and return with draft legislative priorities at the November meeting; council members requested that proposals be short, targeted and tied to clear implementation needs given likely budget pressures in the Legislature.

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