Providing a sales and use tax incentive for multifamily affordable housing.

SB 5553 creates a sales and use tax deferral program for developers converting underutilized commercial buildings or constructing new multifamily housing in areas with housing shortages. It requires at least 10% of units to be affordable to low-income households for 10 years and mandates completion within three years (with a possible 24-month extension). Cities must adopt specific application, approval, and appeal processes, and developers must verify they would not build without the incentive. This directly affects developers of qualifying affordable housing projects and local governments implementing the program.