The "Affordable Homes Act" aims to tackle the affordable housing crisis in Washington State by restructuring the real estate excise tax system. The bill introduces a tiered excise tax rate based on the selling price of real property, with specific allocations for tax revenue directed towards the Washington housing trust fund, the apple health and homes account, and a new developmental disabilities housing and services account. Additionally, it allows counties and cities to impose an additional excise tax of up to 0.25 percent on real property sales to fund affordable housing initiatives, mandating that at least 50 percent of the revenue be used for the construction or acquisition of affordable housing. The legislation also clarifies the use of excise tax revenues for capital projects and removes previous time limitations on their use.

Moreover, the bill updates definitions related to real property transactions and introduces tax exemptions for low-income housing developments and properties benefiting individuals with developmental disabilities. It establishes requirements for qualifying grantees to ensure properties remain dedicated to low-income housing for a minimum of ten years, with penalties for non-compliance. The Washington housing trust fund will receive a minimum of $5 million annually starting in fiscal year 2026, specifically for facilities housing low-income migrant, seasonal, or temporary farmworkers. Overall, the bill seeks to enhance affordable housing availability and reduce homelessness through targeted financial strategies and support systems.

Statutes affected:
Original Bill: 82.45.060, 82.45.230, 82.46.035, 82.45.010
Substitute Bill: 82.45.060, 82.45.230, 82.46.035, 82.46.010, 82.46.015, 82.46.037, 82.45.010
Second Substitute: 82.45.060, 82.45.230, 82.46.035, 82.46.010, 82.46.015, 82.46.037, 82.45.010, 43.185.030