The bill establishes land banking authorities in Washington State to improve affordable housing options, particularly in urban areas, and to address historical disparities in housing access for marginalized communities, including Black and Indigenous populations. It creates a land bank grant program to facilitate the acquisition and development of affordable housing, ensuring that any loss of affordable units due to public infrastructure investments is compensated by new affordable housing. The legislation outlines the formation of land banks authorized by county legislative authorities and mandates the establishment of advisory boards to oversee their operations. Additionally, it allows land banks to acquire, hold, and improve land within urban growth areas while adhering to local housing plans and collaborating with public entities and nonprofit developers.

The bill also introduces amendments related to property taxation exemptions for nonprofit organizations involved in affordable housing development, specifying that real and personal property owned or leased by a nonprofit land bank is exempt from property taxation if it qualifies under section 501(c)(3) of the Internal Revenue Code. It clarifies definitions related to income levels, such as "low-income," "extremely low-income," and "moderate-income," based on area median income, and introduces definitions for terms like "affordable housing" and "community land trust." Notably, the definition of "low-income" is adjusted to refer to households with an annual income not exceeding 50 percent of the area median income. The bill consolidates these provisions and definitions into a new chapter in Title 36 RCW to enhance clarity and support for affordable housing initiatives.

Statutes affected:
Original Bill: 39.33.015, 36.35.150, 35.21.755