The proposed bill seeks to alleviate Washington's housing shortage by promoting the conversion of underutilized commercial properties into residential or mixed-use developments that incorporate affordable housing. It establishes a framework for the Department of Commerce to engage property owners and developers in projects that can yield at least 250 new housing units, with eligibility criteria focused on urban growth areas and restrictions near certain industrial sites. A scoring system is introduced to prioritize projects based on public benefits, including affordability and job creation. Additionally, the bill offers a new property tax exemption for qualifying projects that commit to providing at least 20% of units as affordable for low-income households for a minimum of 50 years, while also amending definitions and requirements related to affordable housing.

Further amendments clarify the approval process for multifamily housing developments, stipulating that applications must be decided within 90 days and introducing new reporting requirements for property owners receiving tax exemptions. The bill mandates that existing tenants in non-vacant properties be offered comparable housing and a reasonable opportunity to relocate. It also establishes penalties for noncompliance and outlines the process for appealing tax exemption decisions. Notably, the bill defines "underutilized commercial property" to include those identified as high priority by the Department of Commerce, thereby broadening the scope of eligible properties for tax deferrals and ensuring alignment with federal standards for low-income households.

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, 82.59.010