The bill amends the Revised Code of Washington (RCW) to enhance local tax increment financing by updating definitions and procedural requirements for local governments in managing increment areas. It introduces the "consumer price index" for adjusting assessed valuation limits and allows local governments to designate increment areas for public improvement costs, contingent upon specific conditions such as the passage of an ordinance and limitations on assessed valuation. The bill emphasizes the necessity of public improvements to stimulate private development and mandates local governments to conduct project analyses, negotiate mitigation plans with impacted public service districts, and adhere to timelines for public improvements.

Additionally, the bill establishes new requirements for properties seeking tax exemptions for affordable housing, including commitments to rent or sell a percentage of units to low- or moderate-income households. It outlines tenant relocation assistance at the end of the exemption period and sets deadlines for granting new exemptions and extensions. The legislation aims to improve affordable housing availability while ensuring compliance with affordability standards, and it includes provisions for mediation, annual reporting, and the adjustment of tax allocation base values, while streamlining existing language for clarity and transparency.

Statutes affected:
Original bill: 39.114.010, 39.114.020, 39.114.030, 39.114.040, 39.114.050
Substitute bill: 39.114.010, 39.114.020, 39.114.030, 39.114.040, 39.114.050, 39.89.020