The bill seeks to enhance transit-oriented development in Washington by amending the Revised Code to provide a 20-year ad valorem property tax exemption for new housing projects near major transit stations, contingent upon meeting specific affordability criteria. It mandates that at least 20% of the units in these projects be affordable to low-income households for a minimum of 50 years. Local jurisdictions are tasked with creating regulations to implement these exemptions, ensuring compliance with affordability standards. The bill also introduces definitions for key terms and outlines the application process, approval timelines, and requirements for maintaining affordability, including the recording of covenants or deed restrictions. Notably, the new exemptions will cease after January 1, 2032.

In addition to property tax exemptions, the bill addresses impact fees for early learning facilities and low-income housing, capping fees for early learning facilities at the lowest rate for comparable businesses and allowing local governments to grant exemptions. It introduces a 50% reduction in impact fees for qualifying projects in transit-oriented development areas and requires local governments to update their regulations accordingly. Furthermore, the bill establishes a sales and use tax deferral program to encourage the conversion of underutilized commercial properties into affordable multifamily housing, requiring that at least 10% of units in these projects be designated for low-income households. The legislation includes provisions for monitoring the effectiveness of these tax preferences, with a review scheduled for 2032.

Statutes affected:
Original Bill: 84.14.010, 84.14.030, 84.14.060, 84.14.070, 84.14.090, 84.14.100, 84.14.110, 82.02.060, 43.31.565, 82.45.060, 82.59.007, 82.59.010, 82.59.020, 82.59.030, 82.59.040, 82.59.070, 82.59.130, 82.59.080