I applaud Gov. Bob Ferguson for his leadership in addressing housing affordability and supporting local lending. His veto of the proposed tax on first mortgage interest received by community banks (Senate Bill 5794) is a win for Washingtonians. Community Banks are vital, offering creative and flexible financing for nonconforming properties like accessory dwelling units that are a key strategy the Legislature has adopted to expand housing supply. This veto ensures these banks can continue fostering homeownership without burdensome taxes.
Additionally, I thank the Legislature for establishing, and Gov. Ferguson for signing into law, a tax on credit unions that purchase community banks (also in SB 5794). This measure protects our tax base while preserving consumer options by encouraging the survival of independent community banks. These institutions are often the most innovative in addressing unique housing needs, supporting diverse buyers in our communities.
By safeguarding local lenders and promoting policies that align with our state’s housing goals, Gov. Ferguson has shown a commitment to affordability and economic stability. I urge continued support for community banks as they play a critical role in tackling Washington’s housing crisis. When Washington’s community banks are strong, the communities around them thrive.
Kathryn Swenson, president and CEO, Community Bankers of Washington, Kent
