Advocates tell committee limited‑equity cooperative changes will preserve long‑term affordability

Second Substitute House Bill 25‑90 drew testimony Feb. 20 from cooperative developers and attorneys who said the bill would allow limited‑equity cooperatives (LECs) to operate under governing documents that reflect their shared‑ownership model and would preserve long‑term affordability.

Melissa Van Gorkam summarized staff analysis and said the bill adjusts WACOIA definitions to clarify when a cooperative qualifies as a limited‑equity cooperative, modifies how maximum resale price is calculated, and exempts LECs from certain WACOIA requirements unless they elect to be subject to them. Van Gorkam noted a fiscal note showing no estimated state fiscal impact.

Victoria O’Bannon of the Northwest Cooperative Development Center testified that LECs allow working families to build modest equity while ensuring homes remain permanently affordable. Jessica Jensen, an attorney who represents cooperatives, added that requiring LECs to comply with all WACOIA provisions can create unintended consequences for lending and operations, and that the bill aligns statute with how LECs are financed and governed.

Proponents said the change is especially important for preserving manufactured‑housing communities and for making homeownership feasible for lower‑ and moderate‑income households. No opposition testimony on HB 25‑90 was recorded during the Feb. 20 hearing and the committee closed public testimony on the bill that day.