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 redefines "affordable housing" to ensure that monthly costs do not exceed 30 percent of the income for low- or moderate-income households. The bill also updates eligibility criteria for cities seeking these exemptions, including adjustments to population thresholds and zoning requirements. A significant provision requires that at least 20 percent of multifamily housing units be designated as affordable to qualify for extended tax exemptions. Additionally, the bill sets a timeline for the expiration of new exemptions and mandates tenant relocation assistance for low-income households when exemptions expire.

Further amendments address the sale and rental of permanently affordable housing units, specifically for low-income households, by removing the previous income cap of 80 percent of the average median income. Local jurisdictions are permitted to collect administration fees for oversight of affordable housing units. The bill also establishes criteria for designating residential targeted areas, ensuring minimal displacement risk for current residents, and includes reporting requirements for cities and counties regarding tax exemptions. Compliance measures are strengthened, with penalties for owners who fail to meet affordable housing commitments, including a sliding scale penalty and the potential cancellation of exemption certificates. Overall, the legislation aims to improve the availability of affordable housing while protecting the interests of existing 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