The bill seeks to improve housing affordability in Washington by introducing a sales and use tax deferral program that incentivizes the conversion of underutilized commercial properties into affordable housing units. It requires that at least 10% of the newly created units be designated for low-income households, thereby addressing the urgent need for affordable housing in urban areas. The legislation outlines a clear application process for property owners, establishes eligibility criteria, and mandates annual reporting by cities on the program's effectiveness, including metrics such as the number of affordable units created and the total value of tax deferrals granted.

Additionally, the bill sets a firm deadline for applications, stating that no applications will be accepted after June 30, 2034, and establishes a framework for the issuance of tax deferral certificates. It includes guidelines for the retention of documentation by recipients to verify deferred tax amounts and stipulates conditions for notifying authorities of compliance changes. The program is designed to expire on July 1, 2034, ensuring a limited timeframe for participation while also incorporating a performance statement to assess the impact of the tax preference on increasing affordable housing units.

Statutes affected:
Engrossed Second Substitute: 84.14.010
Bill as Passed Legislature: 84.14.010
Session Law: 84.14.010