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. It introduces a land bank grant program designed to increase the availability of low-income and moderate-income housing, ensuring that any loss of affordable housing due to public infrastructure investments is compensated by the creation of new affordable units. Key provisions include the authorization for counties to create land banks that can acquire, hold, and improve land within urban growth areas, as well as the establishment of an advisory board to oversee these entities. The legislation emphasizes racial equity and mandates that land banks prioritize affordable housing and community needs, while also facilitating the transfer of surplus public land to land banks for public benefit purposes.

Additionally, the bill provides tax exemptions for certain properties owned or leased by nonprofit land banks, contingent upon their qualification under section 501(c)(3) of the Internal Revenue Code. It clarifies definitions related to income categories and introduces new terms relevant to affordable housing, such as "community land trust" and "permanently affordable homeownership." The bill specifies that affordable housing costs should not exceed 30 percent of a household's monthly income and includes provisions for the governance of community land trusts, emphasizing community involvement and equitable representation. Overall, the legislation aims to enhance affordable housing initiatives while providing necessary tax relief to organizations committed to this cause.

Statutes affected:
Original Bill: 39.33.015, 36.35.150, 35.21.755