The bill seeks to amend various sections of the Revised Code of Washington (RCW) to enhance funding and exemptions for affordable housing and related services. Key changes include adjusting the maximum sales and use tax rate that counties and cities can impose from "one-tenth of one percent" to "0.1 percent," with a mandate that at least 60 percent of the collected funds be allocated for constructing or acquiring affordable housing and behavioral health facilities. The legislation also introduces provisions for prioritizing housing for vulnerable populations, allows for interlocal agreements to pool tax receipts, and requires annual reporting to the Department of Commerce to ensure transparency. The tax imposed will expire 20 years after its initial imposition.

Additionally, the bill outlines specific allocations of funds collected from a surcharge related to homelessness, mandating that 1.8 percent go to the landlord mitigation program and at least 75 percent of county funds be directed towards local homeless housing plans. It clarifies exemptions from real estate excise tax for certain property transfers, particularly those involving low-income housing developments and properties for individuals with developmental disabilities. The bill also establishes new compliance timelines and penalties for non-compliance, while emphasizing the importance of maintaining properties for low-income housing for specified periods. Overall, the legislation aims to facilitate affordable housing initiatives while ensuring adherence to tax regulations and accountability in fund management.

Statutes affected:
Original bill: 82.14.530, 82.14.540, 82.45.010
Substitute bill: 82.14.530, 82.14.540, 82.45.010, 84.36.043