WA HB1774

Authorizes the Washington Department of Transportation to lease unused highway land to public agencies, tribes, nonprofits, and special purpose districts for community purposes at below-market rates by counting social, environmental, or economic benefits as part of the lease consideration.

Defines eligible community purposes as housing and shelter programs (including tiny home villages), parks, public plazas, public recreation, salmon habitat restoration, and public transportation uses.

Requires the department to evaluate leases based on benefits to overburdened communities and vulnerable populations, public benefit scope, alternative economic uses of the property, and the lessee's qualifications.

Mandates lessees maintain and secure premises, carry adequate insurance, and restricts housing/shelter leases from being located on state highway rights-of-way or areas that would endanger infrastructure or travelers.

Requires legislative approval for nonprofit leases exceeding five years and annual reporting to transportation committees on active lease agreements by December 1st each year; effective July 27, 2025.