This bill amends RCW 84.36.560 to expand eligibility for property tax exemptions for nonprofit entities that provide affordable rental housing, particularly those utilizing city and county funds. Key changes include specifying that at least 75 percent of the occupied units must be occupied by qualifying households, and it introduces a new funding source for eligibility: city or county funds designated for affordable housing. Additionally, the bill adjusts the income thresholds for qualifying households, raising the limits from 50 percent to 60 percent of the median income for certain households, and from 80 percent to 80 percent for those already receiving exemptions.

The bill also clarifies the conditions under which properties can qualify for tax exemptions, including provisions for properties that are unoccupied due to renovations but will be used for qualifying housing within two years. It establishes that the property must be used exclusively for the exempt purpose and allows nonprofit entities to make payments to local governments for services related to the rental housing, capped at the amount of the last annual tax levied before the exemption. The act is set to apply to taxes levied for collection in 2025 and thereafter.

Statutes affected:
Original Bill: 84.36.560
Substitute Bill: 84.36.560
Bill as Passed Legislature: 84.36.560
Session Law: 84.36.560