The Builders’ Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, State of the Cities Data Systems, Office of Financial Management and the Washington State Employment Security Department.

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Reports Highlight Flaws in Mandatory Affordable Housing Fees

by MBAKS Government Affairs

Two new reports from ECOnorthwest shed light on key shortcomings in inclusionary zoning policies and the nexus studies often used to justify mandatory affordable housing requirements on new market-rate development.

MBAKS commissioned ECOnorthwest, an independent third-party public policy research firm, to prepare these reports in support of more informed local dialogue around affordable housing strategies.

The first report, Mandatory Affordable Housing Fees Carry Unintended Consequences, examines the real-world impacts of imposing affordable housing fees without corresponding incentives. It finds that mandatory affordable housing fees, though well-intentioned, disproportionately affect middle housing projects, often tipping them from risky to infeasible and preventing them from being built altogether. 

The second, How Nexus Studies Misunderstand the Affordable Housing Challenge, highlights a core flaw in the logic underpinning many nexus studies: the assumption that new market-rate housing is the primary driver of demand for affordable housing. The report describes several issues with this assumption, arguing that the framework used to justify mandatory inclusionary requirements misrepresents the true dynamics of housing markets. It does so by ignoring the broader supply shortage and the filtering process through which new housing helps ease pressure on lower-cost homes. By attributing the affordability crisis to new development rather than to structural undersupply, nexus studies risk reinforcing policies that further constrain housing production—ultimately exacerbating the very problem they aim to solve.

The ECOnorthwest reports reinforce the need to continue advancing solutions that increase supply at all levels. MBAKS is committed to being a collaborative partner in addressing the region’s housing shortage so our communities can be more affordable and inclusive for all.

Washington becomes the 11th state to adopt background check reform within the private sector. 

Today, June 7, marks the date the Fair Chance Act goes into effect in effort to ensure applicants are judged by their work and experience qualifications—and not by criminal or arrest histories. The act, HB 1298, is designed to get figurative feet in the door or, in other words, to keep companies from discriminating against potential hires until applicants at least meet minimum requirements for various job types. 

If an employer determines that the applicant is qualified, the law does not restrict the employer from inquiring into or obtaining information about a criminal record.

Maurice Emsellem, program director with the National Employment Law Project, says “HB 1298 represents a major step forward for Washington state’s business community and economy, while providing hope and opportunity to all those qualified workers who have struggled to find work with a conviction record but who are ready to give back to their communities.”

Penalties for not adhering to the act are as follows: 

• First Violation: Notice of violation.
• Second Violation: Penalty of up to $750.
• Third Violation and beyond: Penalty of up to $1,000 for each instance.

HB 1506, Washington's Equal Pay Opportunity Act, also goes into effect today. Learn more about complying with both laws from BIAW.