The bill seeks to enhance affordable housing incentives in rural Washington State by amending property tax exemption laws related to new housing construction, conversion, and rehabilitation. A significant addition is the introduction of a 12-year property tax exemption for counties unable to designate a residential targeted area, provided that at least 20% of multifamily housing units are made available as affordable housing for low- and moderate-income households. The bill also stipulates that developments must have a minimum density of 15 dwelling units per gross acre. Additionally, it extends certain tax exemptions until December 31, 2035, and establishes requirements for tenant relocation assistance once the exemption period concludes.

Moreover, the legislation allows local jurisdictions to impose an administration fee at each sale to fund the oversight of programs aimed at maintaining permanently affordable housing. It clarifies that the exemptions do not cover the value of land or nonhousing-related improvements and treats the value of new housing construction or rehabilitation as new construction for tax purposes after the exemption period. The bill also defines "permanently affordable homeownership," outlines requirements for such housing, and streamlines the application process for certain property owners. It mandates the creation of a template for permanent affordability through deed restrictions and sets a deadline of January 1, 2032, for new exemptions under this section, while including tax preference performance statements for future evaluations.

Statutes affected:
Original Bill: 84.14.010, 84.14.020, 84.14.021, 84.14.030, 84.14.060