The bill aims to expand the existing sales and use tax deferral program for affordable housing in Washington State to include structures that were initially used as temporary employee housing for workers constructing large facilities such as warehouses and distribution centers. Key amendments to the law include the introduction of the term "housing equity property," which refers to investment projects funded by regional affordable housing collaborators that were previously used as temporary employee housing. The bill emphasizes the importance of creating affordable housing units to support economic health and urban planning goals, while also ensuring that limited resources are focused on affordable housing initiatives.

Additionally, the bill outlines the procedures for property owners seeking tax deferrals, including the requirement to demonstrate that the project will contribute to affordable housing and meet specific conditions regarding income eligibility and rental prices. The legislation also establishes a performance statement to evaluate the effectiveness of the tax preference, with a review scheduled for December 31, 2030, to assess the increase in affordable housing units. If the review indicates no increase, the legislature intends to repeal the tax preference. Overall, the bill seeks to incentivize the redevelopment of underdeveloped properties in urban areas to address the growing need for affordable housing.

Statutes affected:
Original Bill: 82.92.005, 82.92.007, 82.92.010, 82.92.030, 82.92.040