The bill amends the Revised Code of Washington (RCW) to enhance property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers, with a focus on affordable housing. It clarifies that "affordable housing" means monthly costs should not exceed 30 percent of the income of low- or moderate-income households. The bill lowers the population threshold for cities eligible for these exemptions from 15,000 to 5,000 in certain cases and introduces requirements for property owners to commit to renting or selling a percentage of units as affordable housing. It also establishes a deadline for new exemptions after January 1, 2032, and prohibits extensions after January 1, 2046, while mandating tenant relocation assistance at the end of the exemption period.

Additionally, the bill outlines compliance measures for property owners, including the requirement to notify assessors of any changes in use or noncompliance with affordable housing commitments. It imposes penalties for failing to meet the required number of income-restricted units and establishes a sliding scale for penalties based on the severity of noncompliance. The bill also mandates annual reporting on occupancy and compliance, and it allows for audits to ensure adherence to commitments. Overall, the legislation aims to improve the availability of affordable housing while ensuring that tax exemptions are effectively utilized to benefit low- and moderate-income residents.

Statutes affected:
Original Bill: 84.14.010, 84.14.020, 84.14.021, 84.14.040, 84.14.060, 84.14.070, 84.14.100, 84.14.110
Bill as Passed Legislature: 84.14.010, 84.14.020, 84.14.021, 84.14.040, 84.14.060, 84.14.070, 84.14.100, 84.14.110
Session Law: 84.14.010, 84.14.020, 84.14.021, 84.14.040, 84.14.060, 84.14.070, 84.14.100, 84.14.110