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 adjusts eligibility criteria for cities seeking these exemptions, including changes 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, it sets a timeline for the expiration of new exemptions, with no new exemptions granted after January 1, 2032, and no extensions after January 1, 2046, while mandating tenant relocation assistance for low-income households at the end of the exemption period.

Further amendments target 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 outlines criteria for designating residential targeted areas, emphasizing the need for affordable housing and evaluating displacement risks. It establishes reporting requirements for cities and counties regarding tax exemptions for multiunit housing, ensuring accountability. Additionally, the bill introduces penalties for noncompliance with affordable housing commitments, including a sliding scale penalty for owners who fail to meet the required number of income-restricted units, and outlines a process for appealing cancellation determinations and correcting tax rolls. Key insertions include specific timelines for notifications and penalties, as well as the establishment of appeal processes.

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