No, it needs TO BE washed or it needs PAINTING. The verb to need is transitive; it requires an object. And an object, by definition, cannot be an adjective.
Hows that for grammar nazism?
Ja, ja... that is like a big, blinking "ERROR" warning when I see it, too. The Brits do something similar when they someone who has been injured is "In Hospital". I suppose, though, that it's their language to mangle however they see fit. ;-)
Then there's the whole "laboUr" and "coloUr" thing ... But don't get me started.