The proposed bill seeks to enhance tax exemptions for properties utilized as affordable housing by social housing agencies, amending several sections of the Revised Code of Washington (RCW) and introducing new requirements. A key provision mandates that qualifying grantees, particularly social housing agencies, must record a covenant ensuring that the property will be primarily used for low-income housing for a minimum of 15 years. This long-term commitment is a significant insertion aimed at bolstering the availability of affordable housing. The bill also outlines conditions for the operation and development of low-income housing, including timelines for tax exemptions and compliance with housing regulations, while establishing tax liabilities for grantees that fail to meet these requirements.

Additionally, the bill clarifies definitions related to low-income and moderate-income households and the roles of qualifying grantees, which include nonprofit entities and housing authorities. It specifies that properties owned or used by social housing agencies for rental housing are exempt from taxation if at least 50% of the units are occupied by qualifying households, with partial exemptions available for lower occupancy rates. The legislation also details the criteria for property tax exemptions, emphasizing the necessity for properties to be insured or financed through specific federal or state housing programs. Overall, the bill aims to provide clearer guidelines and enhanced tax relief to support the development and maintenance of affordable housing for low-income and moderate-income households.

Statutes affected:
Original bill: 82.45.010, 35.21.660, 84.36.805
Substitute bill: 82.45.010, 84.36.805, 84.36.815, 84.36.049