The bill aims to enhance property tax exemptions for nonprofit housing providers in Washington, allowing them to maintain these exemptions even when their properties are temporarily used for community purposes beyond affordable housing. It amends sections of the Revised Code of Washington (RCW) to clarify that properties must be used exclusively for the activities qualifying for the exemption, while incidental uses, such as fundraising events, will not disqualify them as long as they do not become habitual. Additionally, the bill introduces provisions regarding property transfers between nonprofit entities, ensuring that such transfers do not automatically lead to the loss of tax exemption.

Furthermore, the legislation establishes specific criteria for disqualifying the property tax exemption, including the requirement to transfer title to a low-income household within a designated timeframe. It mandates annual financial statements from nonprofit entities claiming the exemption to ensure financial transparency and outlines the application and renewal process for tax-exempt status. The bill sets a deadline for initial exemption applications by December 31, 2027, and specifies that the exemption will not apply to taxes due in 2038 and beyond. It also includes provisions for the expiration of certain sections of the act, with specific sections set to expire on January 1, 2033.

Statutes affected:
Original bill: 84.36.805, 84.36.049, 84.36.815