This bill amends Washington state property tax exemption laws concerning new and rehabilitated multiple-unit dwellings in urban centers, specifically focusing on affordable housing. It clarifies that "affordable housing" means monthly costs should not exceed 30 percent of the income for low- or moderate-income households. The bill lowers the minimum population requirement for cities eligible for these exemptions from 15,000 to 5,000 in certain cases and introduces new conditions for property tax exemptions based on the percentage of affordable housing units provided. It also specifies that properties may qualify for exemptions ranging from 10 to 20 years, depending on compliance with affordability requirements, and mandates that at least 20 percent of multifamily housing units must be affordable to qualify for extended exemptions.

Additionally, the bill establishes new criteria for designating residential targeted areas, emphasizing anti-displacement measures and requiring local authorities to notify taxing districts of proposed changes. It introduces penalties for owners who fail to meet affordable housing commitments, including a sliding scale penalty for noncompliance and the potential cancellation of exemption certificates in cases of substantial noncompliance. The bill also outlines a process for appealing cancellation determinations and limits the period for which properties can be listed as omitted assessments due to noncompliance to three years. Overall, the bill aims to enhance the availability of affordable housing while ensuring compliance and accountability among property owners.

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