The bill establishes land banking authorities in Washington State to improve affordable housing options, particularly in urban areas, and to address historical disparities in housing access for marginalized communities, including Black and Indigenous populations. It creates a land bank grant program to facilitate the acquisition and development of affordable housing, ensuring that any loss of affordable units due to public infrastructure investments is compensated by new affordable housing. The bill outlines the formation of land banks authorized by county legislative authorities and mandates the establishment of advisory boards to oversee their operations. It also includes provisions for land banks to acquire and improve land within urban growth areas, prioritizing affordable housing development, and requires the development of planning strategies that address community needs and displacement risks.

Additionally, the bill introduces amendments related to property taxation exemptions for nonprofit organizations involved in affordable housing development, specifying that all real and personal property owned or leased by a nonprofit land bank is exempt from property taxation if it qualifies under section 501(c)(3) of the Internal Revenue Code. It clarifies definitions related to income levels and establishes definitions for terms such as "affordable housing" and "community land trust." The bill also ensures that properties recognized as historical sites prior to January 1, 1976, receive the same tax immunity as those within designated districts. Overall, the bill aims to enhance the availability of affordable housing through tax incentives and by clarifying the roles of nonprofit organizations and land banks in this sector.

Statutes affected:
Original bill: 39.33.015, 36.35.150, 35.21.755