An AWC priority bill expanding local revitalization financing (LRF) passed the House Local Government Committee with amendments.

HB 2804, sponsored by Rep. Davina Duerr (D–Bothell), provides new funding and a new application process for LRF projects. The bill also increases the state’s annual contribution limit for LRF projects from $2.5 million to $15 million over the next 30 years. This bill is part of AWC’s 2020 priority to create additional economic development tools. We need cities to weigh in to keep this bill moving.

Before approving the bill, the committee included the following amendments. The bill:

• Removes the $500,000 state contribution limit for an individual project;
• Caps annual state contributions to $1 million per project for 20 years;
• Reduces the window for expanded $15 million state contribution annual limit from 25 years to 20 years;
• Requires that cities applying for state contributions provide documentation that they have consulted with federally recognized Native American tribes if the proposed project may involve archeological, cultural, or natural resource sites that are significant to the tribes;
• Mandates that 80% of units be classified as affordable if a project includes housing; and
• Includes new criteria related to a project’s ability to redevelop a brownfield under the Model Toxics Control Act.

Additionally, the bill tasks JLARC with submitting a report on the effectiveness of the state’s contributions to local revitalization projects by December 1, 2025.

Thank you to the cities of Lakewood, Fife, and Kennewick for testifying at the hearing in the House Local Government Committee.

HB 2804 is now in the House Finance Committee and needs to be scheduled for a hearing by the February 11 deadline to continue advancing.

This is a priority bill for cities and we encourage you to ask your legislators to support this proposal.