Housing

This bill modifies Washington's covenant homeownership program, which provides down payment and closing cost assistance to eligible first-time homebuyers from historically marginalized communities. It raises the household income eligibility threshold for participants from 100% to 140% of the area median income. The bill also introduces a provision allowing for full loan forgiveness after five years for participants whose household income is at or below 80% of the area median income at the time of the loan. Additionally, it adjusts the membership of the program's oversight committee.

HB 1540 expands eligibility for the "students experiencing homelessness and foster youth program" to include accredited public tribal colleges in Washington. This program, previously available only at public four-year institutions, provides assistance to students experiencing homelessness and those who were in the foster care system when they graduated high school. Support services can include access to laundry, storage, reduced-price meals, technology, housing assistance, and case management. Participating institutions are also enabled to develop affordable housing from surplus property and are required to submit annual reports to the legislature on the program's impact.

HB 1094 creates a property tax exemption for nonprofit organizations that loan, lease, or rent property to government entities (like cities, counties, or state agencies) for character-building, benevolent, protective, or rehabilitative social services - such as youth programs, homeless shelters, or community health initiatives. It directly affects qualifying nonprofits that provide these services and government agencies using their facilities. The key provision expands existing tax exemptions by allowing property used by government for these purposes to be exempt, even if owned by a nonprofit. This policy change aims to reduce costs for nonprofits and governments delivering essential community services, effective July 2025.