Companion bills HB 1493 and SB 5357 modify authority which allowed cities and counties to go to the voters for a one half of one percent REET tax to fund affordable housing. The current authority was limited to jurisdictions that had adopted an optional conservation REET before 2003, which meant it only applied to San Juan County. This proposal would reopen this opportunity to the rest of the cities and counties in the state to use this tool. Jurisdictions would be allowed to go to the voters to adopt the full tax or to councilmanically adopt a rate less than the fully authorized amount. HB 1493 is sponsored by Rep. Melanie Morgan (D–Parkland) and SB 5357 is sponsored by Sen. Jeannie Darneille (D–Tacoma).
HB 1581 would authorize cities over 200,000 that are not in King County to adopt a new sales tax of up to 6.5 percent, rebated against the state sales tax. The city must provide annual matching funds equal to 50 percent of these revenues, and proceeds must be deposited into a local housing trust fund account for low-income housing. HB 1581 is sponsored by Rep. Jake Fey (D–Tacoma).
HB 1590 would make the current voter-approved, sales-tax-based affordable housing levy a councilmanic option across the state. HB 1590 is sponsored by Rep. Beth Doglio (D–Olympia). In previous years, the Legislature has considered this approach for King County only. In those discussions, some cities within King County have sought additional language requiring geographic equity in revenue expenditures, and planning and outreach requirements to develop spending plans. Those conversations may emerge again on this proposal.
AWC will support these proposals as potential tools for cities to address critical needs, while working with cities that may have additional refinements that they would like to see in these bills.
Dates to remember
HB 1493 will be heard in the House Finance Committee on February 5 at 8 am. SB 5357 is heard the next day, February 6 at 1:30 pm in the Senate Housing Stability & Affordability Committee.
HB 1581 and HB 1590 will both be heard at 10 am on Tuesday, February 5 in the House Housing, Community Development & Veterans Committee. Both bills are also scheduled for a committee vote as early as Wednesday, February 6.