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 introduce the definition of "qualifying grantee" and stipulates that these grantees must 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 qualifying grantees. The legislation also outlines the conditions under which these tax exemptions apply, including compliance with specific timelines and the necessity for the Washington State Housing Finance Commission to collect data on the fiscal impacts of these exemptions.

Furthermore, the bill clarifies the responsibilities of qualifying grantees, which include counties, municipal corporations, and social housing agencies, in maintaining their tax-exempt status. If they fail to meet the outlined requirements, they will be liable for the taxes that would have been due at the time of the initial transfer, along with interest. The bill also introduces definitions for terms such as "nonprofit organization," "low-income," and "moderate-income household," and specifies that properties sold to organizations with an option for repurchase do not qualify for tax-exempt status unless sold to nonprofit entities or social housing agencies. Overall, the legislation aims to promote affordable housing initiatives while ensuring accountability and compliance among the involved entities.

Statutes affected:
Original bill: 82.45.010, 35.21.660, 84.36.805