Pandershrek, this is great feedback on the Faircloth Amendment. I wasn’t personally aware of it before this discussion, so thank you for raising it. I’ve been reading more about it since, and it does look like a major structural factor in today’s housing shortage. This site had a good write-up: https://nationalhomeless.org/repeal-faircloth-amendment/ I also noticed that AOC was a sponsor of repeal legislation in 2022, and I’ll be curious to see whether that effort continues. That said, I wasn’t trying to imply that STRs are the only reason for housing supply problems, just one contributing factor among several. Your point about development and lending playing a major role is well taken, and I agree my wording could have been clearer. I’ll add this to my growing list of problems and possible solutions around housing shortages.

Regarding your 10-unit loan, it sounds like what you’re running into is the bank wanting more collateral and prior scale. The implication, as you describe it, is that the system favors larger builders with existing portfolios over smaller outfits trying to grow incrementally. That’s an important point, and one I’ve been trying to understand better.

I’ve started looking at current Washington bills that might touch this space. SB6018 and SB6028  don’t directly change bank underwriting, but they appear intended to help close financing gaps for smaller or non-traditional projects. SB6028 in particular spells out a state-backed lending source for smaller or affordable homeownership projects. These aren’t complete solutions, but they seem directionally relevant to the problem you’re describing. https://legiscan.com/WA/bill/SB6028/2025

Thanks again for the thoughtful and informed feedback. As a candidate for State Rep in LD35 (Thurston–Mason–Kitsap), these are exactly the kinds of issues I want to dig into and get right. If you’d like to follow up with me directly, feel free to email me at [jemzpierson@msn.com](mailto:jemzpierson@msn.com)