The bill seeks to enhance tax exemptions for properties designated as affordable housing, specifically those owned or operated by social housing agencies. It amends existing laws, including RCW 82.45.010 and RCW 84.36.805, to clarify definitions and conditions for these exemptions. A significant addition is the requirement for qualifying grantees, particularly social housing agencies, to record a covenant at the time of property transfer, ensuring the property is used exclusively for low-income housing for a minimum of 15 years, an increase from the previous 10-year requirement for other grantees. The bill also stipulates that tax exemptions will only be granted if the grantee operates, develops, or rehabilitates housing within specified timeframes, with penalties for non-compliance.

Furthermore, the legislation introduces new definitions for terms such as "nonprofit organization," "social housing agency," and "low-income," while establishing that properties can be exempt from taxation if at least 50% of the units are occupied by qualifying households and financed through designated housing programs. It outlines the responsibilities of qualifying grantees, including the recording of covenants and the potential tax liabilities if requirements are not met. The bill also allows for property transfers between qualifying grantees without incurring tax liabilities, provided the new grantee adheres to the established conditions. Additionally, it includes provisions regarding unauthorized use of exempt properties and mandates access to financial records by the Department of Revenue to verify tax-exempt status.

Statutes affected:
Original bill: 82.45.010, 35.21.660, 84.36.805