Initiative to the People of Washington State
Section 1: Title
This initiative shall be known as the Homes for Washingtonians Initiative.
Section 2: Findings and Intent
(1) The people of Washington find that:
(a) Housing affordability is a critical issue, with median home prices in Seattle reaching $927,000 in 2024 and 50% of renters spending over 30% of their income on rent.
(b) Corporate ownership of residential real estate restricts access for individual Washingtonians, with corporations owning approximately 14% of single-family homes, equating to 242,000 homes.
(c) Limiting ownership to real persons, while preserving affordable housing, will increase opportunities for first-time homebuyers, reduce speculative price inflation, and promote equitable access to housing.
(d) Tenants in corporate-owned properties must be protected from displacement during ownership transitions to ensure housing stability.
(2) The intent of this act is to:
(a) Restrict ownership of residential real estate to real persons, except for qualified affordable housing providers.
(b) Encourage non-real persons to divest residential real estate within two years, with protections for tenants to minimize disruption.
(c) Empower Washingtonians to achieve homeownership and stabilize housing costs.
Section 3: Definitions
(1) “Real person” means a natural person who is a citizen or legal resident of the United States, excluding trusts, estates, corporations, limited liability companies, partnerships, or any entity with more than 25% ownership or control by such entities. “Control” includes voting rights, financial influence, management authority, or contractual dominance, such as board seats or veto power.
(2) “Residential real estate” means any real property used or intended for use as a primary residence, including single-family homes, condominiums, townhouses, duplexes, triplexes, four-plexes, and multifamily apartment buildings.
(3) “Affordable housing provider” means a nonprofit organization or public housing authority that develops or operates housing for households earning 80% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, or an entity registered under RCW 24.03A or recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
(4) “Current lease” means any legally binding residential lease agreement in effect on the effective date of this act.
Section 4: Restriction on Ownership
(1) Only real persons or affordable housing providers may own residential real estate in Washington State.
(2) Any transfer or acquisition of residential real estate by a non-real person or non-exempt entity after the effective date of this act is void and unenforceable.
(3) Non-real persons owning residential real estate on the effective date, except affordable housing providers, must transfer ownership to a real person or exempt entity to comply with this act.
Section 5: Divestment Encouragement
(1) Non-real persons, except affordable housing providers, are encouraged to divest residential real estate within two years from the effective date of this act.
(2) After two years, non-real persons owning residential real estate in violation of Section 4 shall pay a penalty of $5,000 per property per month until compliance.
Section 6: Tenant Protections
(1) For one year from the effective date of this act, non-real persons divesting residential real estate shall not terminate current leases or issue notices to vacate, except as permitted by state landlord-tenant laws for health, safety, or legal compliance (RCW 59.18.200).
(2) New owners acquiring divested properties within one year shall assume all obligations of current leases until the one-year period expires or leases are lawfully terminated.
Section 7: Enforcement
(1) The Washington State Department of Commerce shall:
(a) Maintain a public database of residential real estate ownership to verify compliance with Section 4.
(b) Investigate violations and issue notices of non-compliance.
(c) Collect penalties under Section 5 and deposit them into the Washington Homeownership Fund.
(2) Affordable housing providers must annually certify compliance with the Department of Commerce, including documentation of low-income housing operations.
(3) The Attorney General may bring civil actions against violators, including injunctive relief and penalties up to $25,000 per violation.
(4) Individuals or exempt entities harmed by violations may seek damages in superior court.
Section 8: Washington Homeownership Fund
(1) A Washington Homeownership Fund is established in the state treasury.
(2) The fund shall receive penalties collected under Section 5 and other appropriations or donations.
(3) Moneys in the fund shall be used solely to:
(a) Provide grants to first-time homebuyers earning 80% or less of the area median income for purchasing properties divested under this act.
(b) Administer this act, not to exceed 5% of annual fund revenue.
(4) The Department of Commerce shall administer the fund and report annually on its use.
Section 9: Severability.
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or its application to other persons or circumstances is not affected.
Section 10: Effective Date
This act takes effect 90 days after certification of the election results.