The bill amends existing laws in Washington State concerning the funding and allocation of sales and use taxes for affordable housing and related services. It specifies that tax rates will not exceed 0.1 percent and mandates that a minimum of 60 percent of collected funds be allocated for constructing or acquiring affordable housing, as well as for behavioral health facilities and operational costs. The legislation also allows for interlocal agreements between counties and cities to pool tax receipts and pledge them to bonds, while establishing guidelines for fund usage, including limitations on administrative costs and annual reporting requirements. Additionally, the bill introduces a 20-year expiration for the imposed tax, ensuring accountability in funding affordable housing initiatives.

Furthermore, the bill outlines the allocation of funds collected from a surcharge related to homelessness, specifying that 1.8 percent will go to the landlord mitigation program account, with at least 75 percent of the remaining funds directed towards local homeless housing plans. It also details the responsibilities of the Department of Commerce in administering housing assistance programs, including the use of funds from document recording fees, with a stipulation that 90 percent must support homelessness assistance grants. The bill includes provisions for tax exemptions related to real estate transactions involving low-income housing and properties for individuals with developmental disabilities, establishing conditions for these exemptions and penalties for non-compliance. Overall, the legislation aims to enhance affordable housing initiatives while ensuring compliance with tax regulations and accountability in fund management.

Statutes affected:
Original bill: 82.14.530, 82.14.540, 82.45.010