The bill seeks to enhance the flexibility of funding sources for public safety and affordable housing initiatives by amending the local real estate excise tax regulations in the Revised Code of Washington (RCW). Key modifications include a clarified definition of "sale" to encompass the transfer of controlling interests in entities with real property interests within a 36-month period, as well as the introduction of new exemptions for low-income housing developments and properties serving individuals with developmental disabilities. The legislation also establishes criteria for "affordable housing development," ensuring that such projects serve households with incomes not exceeding 80 percent of the median household income, and mandates compliance from qualifying grantees regarding the use of properties for low-income housing.

Additionally, the bill allows counties and cities to impose an excise tax of up to 0.5% on real property sales, with revenues directed towards capital projects, including affordable housing and homelessness services. It modifies the allocation of tax revenues to enable greater funding for the maintenance and operation of existing projects, while also clarifying the definition of "maintenance" to focus on preserving the useful life of capital projects. The bill establishes a distinct framework for capital project funding, indicating that certain existing regulations will not apply, and sets a structured timeline for the implementation and expiration of specific provisions. Overall, the legislation aims to streamline funding processes and support the development of affordable housing and community services.

Statutes affected:
Original Bill: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037
Substitute Bill: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037