Title
Discuss 2026 legislative Updates Related to Affordable Housing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss 2026 legislative updates related to affordable housing and provide direction on a preferred approach to updating the current Olympia Rental Housing Code (OMC 5.82.140).
Report
Issue:
Whether Discuss 2026 legislative updates related to affordable housing and provide direction on a preferred approach to updating the current Olympia Rental Housing Code (OMC 5.82.140).
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Community Planning and Economic Development, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Community Planning and Economic Development
Background and Analysis:
Staff will provide an update on 2026 Washington State legislation related to affordable housing, as well as additional information regarding proposed federal regulations. A legislative summary is attached. Housing staff has identified one bill that affects the City’s current rental housing code, while Planning staff continues to monitor legislation that may impact existing zoning and permitting regulations.
Current Olympia Rental Housing Code
The Washington State Legislature passed Senate Bill (SB) 6200, which prohibits residential landlords and owners of manufactured/mobile home parks from restricting tenants from installing a portable cooling device of the tenant’s choosing, subject to certain exceptions.
The legislation closely mirrors Olympia Municipal Code (OMC) 5.82.140, which was adopted by the Olympia City Council in 2024. The state law also includes additional protections for residents of manufactured home communities.
Staff Recommendation
The City Council could choose to:
• Update the existing OMC language to align with state law for consistency; or
• Remove OMC 5.82.140 and defer directly to state law.
The City’s Legal Department supports either approach. Staff does not anticipate significant operational impacts associated with either option. To date, staff has not received any complaints related to violations of this section of the OMC.
Maintaining the current code section requires minimal staff resources. However, if the City Council elects to retain OMC 5.82.140, staff would need to continue monitoring changes to state law to ensure consistency and address any future complaints or enforcement issues.
Next Steps
Staff is requesting direction on a preferred approach to updating Olympia Rental Housing Code section OMC 5.82.140.
Climate Analysis:
Staff will provide a summary of legislative updates, which is expected to have no significant impact on greenhouse gas emissions.
Equity Analysis:
The intent of the recently enacted legislation is to increase the supply of affordable housing and expand access to homeownership opportunities, particularly for low-income households and historically marginalized communities. Many of the bills were advanced by partners in the Black Home Initiative to address barriers to homeownership and reduce longstanding disparities in wealth and housing access.
Economic inequities and the lack of intergenerational wealth have contributed to significant income disparities between BIPOC and white households. According to HUD Comprehensive Housing Affordability Strategy (CHAS) data, 24% of households of color in Olympia and 22% of Hispanic/Latinx households earn less than 30% of Area Median Income, compared to 15% of white households. Additionally, 2020 American Community Survey (ACS) data, as referenced in the Assessment of Fair Housing, indicates that individuals with disabilities earned an average income of $26,075, compared to $37,168 for individuals without disabilities. The data also shows that more than 33% of single-mother households in Olympia lived below the federal poverty level, compared to 11% of the overall population.
Updating local codes to align with state law and implementing streamlined permitting processes may increase workload demands on City planning staff in the short term. However, these changes are intended to support broader long-term goals related to housing availability, affordability, and equitable access to homeownership opportunities.
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Neighborhood/Community Interests (if known):
Community members continue to express significant interest in housing-related funding and policy updates. Community surveys and engagement efforts consistently identify affordable housing and homelessness as top priorities for Olympia residents. In recent survey results, 74% of respondents indicated that housing and homelessness are priority issues and expressed concern that residents are unable to access or afford stable housing.
Financial Impact:
Additional costs are not anticipated at this time.
Options:
1. Discuss 2026 legislative updates related to affordable housing and provide direction on a preferred approach to updating the current Olympia Rental Housing Code (OMC 5.82.140).
2. Do not receive a briefing on legislative updates related to affordable housing.
3. Take other action.
Attachments:
2026 Legislative Summary
21st Century Road to Housing Act Explainer