The proposed bill seeks to enhance the limited sales and use tax incentive program in Washington State to encourage the redevelopment of underutilized properties in urban areas. Key changes include the broadening of eligible sites by replacing the term "land" with "property" and introducing new definitions such as "area of reduced affordability requirements." This allows for more flexible housing development criteria in designated urban centers. The bill establishes criteria for identifying these areas, ensuring they have a significant number of underdeveloped or vacant properties and a lack of housing options. It also outlines the process for local authorities to implement the tax deferral program, requiring that at least 50% of units in investment projects be affordable for low- and moderate-income households.

Additionally, the bill amends existing laws regarding tax deferral applications, establishing a clear appeal process for denied recipients and detailing the requirements for submitting applications, which must occur before construction begins. It ensures that tax deferrals remain valid upon transfer of project ownership, provided the new owner meets eligibility criteria. The legislation includes a performance statement to evaluate the effectiveness of tax preferences in increasing affordable housing units and mandates a review by the joint legislative audit and review committee, with a potential repeal if the desired outcomes are not achieved. The act applies to projects commencing construction on or after its effective date.

Statutes affected:
Original bill: 82.92.007, 82.92.010, 82.92.020, 82.92.040, 82.92.070, 82.92.090, 82.32.100, 82.92.110, 82.92.120
Substitute bill: 82.92.007, 82.92.010, 82.92.020, 82.92.040, 82.92.070, 82.92.090, 82.32.100, 82.92.110, 82.92.120