The bill expands the homeownership development property tax exemption in Washington State to include real property sold to low-income households for the purpose of building residences through mutual self-help housing construction. It amends RCW 84.36.049 to clarify that real property is exempt from state and local property taxes if owned by a nonprofit entity or a qualified cooperative association, specifically for developing or redeveloping residences for low-income households. The bill introduces new provisions that allow nonprofit entities to sell real property to low-income households who will build their residences through a qualified mutual self-help housing program, thereby broadening the scope of the exemption.

Additionally, the bill outlines the conditions under which the exemption may expire, including the transfer of title to the low-income household and the requirements for notifying the Department of Revenue when properties become occupied or are sold. It also establishes a framework for evaluating the effectiveness of the tax preference, requiring annual financial statements from nonprofit entities and qualified cooperative associations. The act is set to apply to taxes levied for collection in 2025 and thereafter, with a sunset provision that the section will expire on January 1, 2038.

Statutes affected:
Original Bill: 84.36.049
Bill as Passed Legislature: 84.36.049
Session Law: 84.36.049