HB 2359 modifies Washington state law to change how a 0.1% sales tax revenue can be used for affordable housing and related services. It requires at least 60% of the funds to be spent on building or maintaining housing for low-income residents (at or below 60% of county median income), including veterans, the homeless, and people with disabilities, or on behavioral health facilities. The bill also mandates that 15% of new housing units must be reserved for people living near the facility, and allows local governments to use bonds and interlocal agreements to finance these projects. This law affects counties and cities that impose the tax, directing funds toward specific housing and services while ensuring community-focused allocation.
SB 6256 creates a property tax exemption for unoccupied real estate owned by nonprofit entities that will be used for affordable housing within three years. It directly affects nonprofits planning to develop or renovate housing for households earning at or below 50% of the area median income (as defined by HUD). Key provisions require nonprofits to secure financing from specified sources (like state housing programs or affordable housing levies) and maintain at least 75% occupancy by qualifying households to qualify for full exemption. Partial exemptions apply if occupancy falls below 75%, calculated based on the proportion of qualifying units. The bill expands existing exemptions to cover unoccupied properties during development or renovation, ensuring tax relief aligns with future affordable housing use.
SB 5884 expands a sales and use tax deferral program to incentivize redevelopment of underutilized property in qualifying cities (with populations of 135,000-275,000). It directly affects property owners who develop affordable housing - both rental and homeownership - for low- or moderate-income households, as defined by federal income thresholds. The key mechanism allows qualifying developers to defer paying sales and use taxes on eligible projects, provided they maintain affordable housing for at least 10 years. This applies to vacant land, partially used land, or underutilized property (like surface parking lots) identified by city authorities as suitable for affordable housing redevelopment.
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.
HB 1717 creates a local sales and use tax remittance program for affordable housing projects in Washington. It allows cities and counties to adopt programs where developers of qualifying projects (with at least 50% units for low-income households at 30-38% of income for 40 years) can defer paying local sales taxes on construction costs. Developers must apply to local governments, meet affordability requirements, and complete projects within three years (extendable to five total), with local authorities setting application rules and oversight. The program directly affects nonprofit and for-profit housing developers, public housing authorities, and low-income households in qualifying projects.
HB 1075 amends Washington state law to give public housing authorities more tools to finance affordable housing developments. It allows authorities to form partnerships with nonprofits, include wage requirements in contracts, and manage commercial space within housing projects, while requiring that at least 50% of units in new developments serve low-income residents. The bill directly affects public housing authorities and the low-income renters they serve by streamlining their ability to build and maintain affordable housing. The law, effective July 27, 2025, updates existing authority powers under RCW 35.82.070 to support expanded housing supply.
SB 5587 mandates that the Washington center for real estate research produce biennial reports, starting in 2026, analyzing existing housing units and needs across various income levels in each county. These reports will track each county's progress in addressing housing gaps and meeting emergency housing needs. The bill also amends the Public Works Board's criteria for financial assistance. It requires the board to prioritize public works projects that promote infill development or increase affordable housing in counties identified in these reports as having a gap between existing housing and housing needs.
HB 1480 would allow any Washington county to impose a 0.5% tax on real estate sales to fund affordable housing, but only with voter approval. The tax revenue must be used exclusively for developing housing for very low, low, and moderate-income residents, including construction, rehabilitation, and maintenance. Counties must create a spending plan with public input before seeking voter approval, and the tax would be collected from both buyers and sellers (with at least half of the burden on the buyer). The tax would take effect 30 days after voter approval.
HB 1808 creates a state-funded revolving loan program to support permanently affordable homeownership for low-income households. The program provides loans (up to 50% of project costs) to nonprofit developers building housing that remains affordable for at least 99 years through long-term restrictions on resale and ownership. Loans carry interest rates between 1% and 2.5%, with repayments recycled into the fund to finance new projects. This directly affects low-income homebuyers (defined as households earning ≤80% of local median income) and nonprofit developers who build housing meeting specific affordability standards.
HB 2027 increases real estate transfer taxes on property sales above specific thresholds to fund affordable housing programs. The tax applies at 1.1% for sales under $500,000, 1.28% for $500,000-$1.5 million, 2.75% for $1.5-$3 million, and 3% for sales over $3 million. Revenue from these taxes will support state housing programs targeting low- and middle-income households, including seniors, veterans, farmworkers, and others facing housing insecurity. The bill aims to build over 500,000 new affordable homes for residents earning under 50% of area median income by addressing supply shortages.
